Theme Day Onions

'No national onion listing for the time being'

10 January 2018 - Niels van der Boom - 5 comments

The annual LNCN Theme Day Onions took place in Dronten on Wednesday 10 January. The past season, the sales market, export, quality and future were discussed. Despite a large influx of growers, the volume of free sales is falling. This presents Beurs Emmeloord with challenges.

LNCN chairman Mark Brantjes sums up the season. It started early and under good conditions. After a dry period, enough rain fell. "As growers, we need a heat wave in August, but it continued to rain during the grain harvest," says Brantjes. "Because it remained wet, the quality was compromised. The pricing is meager, despite record high export figures. The onion acreage grew from 10.000 hectares in the 90s to 26.000 hectares in 2017. When will the limit be reached?"

Field selection
Brantjes reports that quality remains a concern. "For the coming season we have to ask ourselves whether the choice of plot is the right one. Soil-borne diseases are becoming more common and make plots less or even unsuitable for cultivation. We also see that onions are grown on soils that are less suitable for this."

He also reflects on trade and price formation: "Dynamics is increasingly lacking in the onion trade. In the past, the market reacted more violently and volatile. There was more free trade. If we look at the actual number of free transactions, which meet the specifications of Beurs Emmeloord, then we notice that relatively few transactions are reported in relation to the export volume."

National listing
One national onion listing allows a greater flow of information, Brantjes believes. "Emmeloord only quotes a price for the top half of the Netherlands. If we can work nationally, the pond in which we fish is much larger. Just like with the PotatoNL quotation, we can then quote every two weeks. LNCN is in favor of such a national onion listing, but it is not possible to align with all partners. Times are changing. Perhaps the future offers new opportunities."

Where a lack of transactions is clearly noticeable is the listing of the organic onions. According to Brantjes, there is not enough reliable information to make a listing. Nevertheless, there is a need in the sector for objective price information. LNCN is therefore still looking for a solution.

Collaboration
Holland Onion Association chairman Gijsbrecht Gunter takes the stage to give the sector a pat on the back. A few years ago he spoke in front of the same room with the message: "Growing and marketing onions is teamwork". According to Gunter, that has worked out well.

MH has been retained until 2023 and 280.000 tons have been sold in 1.200 transactions. The sector presented itself in The Hague, built up relationships and did a lot in the field of export. Indonesia and Panama are new export countries, together good for sales of 40.000 tons. Other export countries such as Costa Rica, China and Belarus have been retained as export countries. "This can only be achieved by working together."

 

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.
Comments
5 comments
stock watcher 10 January 2018
This is a response to this article:
[url=http://www.boerenbusiness.nl/uien/ artikel/10877165/voorlopig-geen-landelijke-uiennotering][/url]
If the lack of reported transactions is a concern, one could also consider moving away from reported quotes and moving to a bid and ask system.
Subscriber
onion grower 10 January 2018
How is it possible that there is a lack of transactions in the onion market, while 30.000 tons are exported. If no onions are then bought by the packers, they are all pool onions (by the way, they are also just transactions)
idd 10 January 2018
well, you have a point there
Free Trade Guard 10 January 2018
Mr Brantjes wants, just like with the potatoes, the Free Onion Trade! also help to the balls with zn national listing! These delusions must be stopped!!
Subscriber
Leave that sir 11 January 2018
Free Trade Guard wrote:
Mr Brantjes wants, just like with the potatoes, the Free Onion Trade! also help to the balls with zn national listing! These delusions must be stopped!!

And if you neatly write your vision, it will help us more than anonymously writing something that is of no use to us.
Why do you think a national listing is not a good alternative, explain.
You may have a good argument!
Write it down and let it read.
Subscriber
stock gorilla 11 January 2018
stockwatcher wrote:
This is a response to this article:
If the lack of reported transactions is a concern, one could also consider moving away from reported quotes and moving to a bid and ask system.


Listing based on reported transactions is prone to manipulation.
In Emmeloord they have been dealing with this for years..........
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