Panama: invariable buyer of Dutch onions

The Central America export region has been developing considerably in recent years. An important exponent is Panama, which purchases the most Dutch onions. This year, Panama already purchased almost 1 tons of onions up to and including week 13.000. However, no large volumes will be added here, because the Dutch onions are becoming 'too old' and Panama is switching to the local harvest.

(Text continues below the chart)This season, almost 1 tons of onions have been exported to Panama until week 13.000.

The 120 day rule
Panama applies a 120 day rule when it comes to the import of onions. The rule means that imported onions may not be older than 120 days, which is approximately 4 months. Since the month of February starts on Wednesday, this means that the period in which the Netherlands can export onions to Panama is coming to an end.

Like many neighboring countries, Panama also grows its own onions. The country has now switched to its own harvest. At the moment, the Netherlands often no longer meets the 120-day rule and Dutch onions are too expensive. Panama still imports onions from North and South America. Peru and the United States (US) in particular are important exporting countries.

Panama imports both yellow and red onions (predominantly yellow). The onions must meet Dutch quality standards and are inspected for nematodes (just like in Nicaragua). The undersize of the onions is 50 millimeters.

Authorities Panama
Exports to Panama are partly dependent on the Panamanian authorities. In many neighboring countries, the import of onions depends on licenses. This is not the case in Panama, which makes exports to the country easier (compared to surrounding countries). However, the Panama authorities are still trying to regulate the market, for example by regulating import conditions and making it difficult for exporters in other areas.

Since there are relatively many 'small' onion growers in Panama, they form an important target group for the authorities. When Panamanian growers take action, this will have a major impact on the export of onions to Panama. The authorities in Panama will make it very difficult for Dutch exporters.

This year, for the first time, there was an auction in which 1 Panamanian importer had the opportunity to import an x ​​number of containers under favorable conditions. Dutch exporters have been able to register with Panamanian importers. The Panamanian authorities do this to regulate the market. There was also recently a similar auction for American onions.

Export expectations
This year, exports to Panama went well and the country imported 23% more onions than last season. The future is difficult to predict, due to the capriciousness of the local authorities. However, expectations are good, because local cultivation is not satisfactory. The quality is not strong, due to the growing conditions and a lack of growing knowledge. There will therefore continue to be a shortage of onions in Panama.Panama has 4 million inhabitants and is 1,8 times the size of the Netherlands (75.320 km2).