Every week we look at an important country in the onion sector. This week: Indonesia. It is a country that sets strict requirements for the import of onions. Which rules must Dutch exporters and farmers adhere to, and what are the expectations for the coming year?
This season, approximately 50 tons of onions have been exported to Indonesia up to and including week 20.125. The first onions were unloaded in week 34 and in week 48 the last onions were shipped to Indonesia (169,2 tons). The export figure is therefore slightly behind the volume achieved in the same period last year. Then 21.928 tons were exported, which was an export record.
In the previous 5 years, approximately 15.000 tons were exported to Indonesia annually. All in all, there are satisfied faces regarding sales to Indonesia this season among Dutch exporters.
(Text continues below the chart)This season, more than 50 tons of onions were exported to Indonesia up to and including week 20.000.
Strict plot requirements
Exports to Indonesia depend on the licenses issued by importers. The volumes received by importers are allocated by the Indonesian government. In addition, Dutch onions must meet the strict requirements that the country sets. For example, the plots on which onions are grown for Indonesia must be free of stem nematodes (Ditylenchus dipsaci). In addition, no residues or heavy metals may be found in the plots.
Exporters have until mid-January to register plots on which onions will be grown for Indonesia. These plots are sampled and when they are completely clean, the plot is declared as a plot to grow onions for Indonesia. Ultimately, the harvested quality of the onions can throw a spanner in the works, making sales to Indonesia impossible.
The export season to Indonesia has now ended for this season. The export season to Indonesia runs concurrently with 1 calendar year, with licenses being issued in January (based on soil surveys). It is expected that the licenses to be issued in the coming year, and therefore also the exports, will be comparable to this season. In the first half of 2018, onions will mainly be sourced from New Zealand.
Medium sorting
On December 21, 2017, Indonesia imposed a new requirement on onion imports. No onions smaller than 50 millimeters in size may be imported. This is a setback for Dutch exports, because Indonesia was normally a good sales market for medium-grade onions.
Sales for the medium grade will therefore be more difficult in the coming weeks. Now that Africa is also largely disappearing as an important destination for the medium sorting, it is difficult to find new destinations. Exporters are busy looking for new destinations for medium-grade onions.