Every week we look at an important country in the onion sector. This week: Hungary. Exports to Eastern Europe have increased in recent weeks. Does this also apply to Hungary?
Exports to Eastern Europe are starting to pick up. That is why an export area from Eastern Europe is explained this week. Although: not all of Hungary can be described as a typical Eastern European market. In Hungary there is a big difference in the different sales areas.
Budapest
There is a difference between the Budapest region and the hinterland of Hungary. The part in and around Budapest is western and well developed; The onions in this region are top notch. Austria is the main supplier for these onions. The cultivation area in eastern Austria is within good transport distance of Budapest.
Onion cultivation in Austria has been very developed in recent years. This is because they have adopted Western techniques and suppliers. This means that they are increasingly able to achieve good yields with high-quality onions. Only when Austria is empty do other countries come into the picture. The Netherlands is then an important candidate, but ultimately the price will be decisive.
Hinterland
The hinterland of Hungary is a different market and this area is a lot poorer. The local onion importers are price buyers, so the quality does not necessarily have to be good. However, Hungary hardly registered for Dutch onions last year. In addition, the export figures up to week 6 are slightly ahead of the 2015 harvest year.
(Text continues below the chart)Exports to Hungary up to and including the 2016 harvest year.
Eastern Europe
Exports to the other countries in Eastern Europe are generally better than last year. However, more differences are visible compared to the 2015 harvest year. The table below provides an overview of exports to a number of countries from Eastern Europe (up to and including week 6).
(Text continues below the table)
Nations | 2017 (in tons) | 2016 (in tons) | 2015 (in tons) |
Hungary | 415 | 51 | 325 |
Czech Republic | 657 | 304 | 1.856 |
Serbia | 16 | 102 | 621 |
Bulgaria | 449 | 2 | 481 |
Poland | 1.431 | 366 | 4.073 |
Romania | 409 | 516 | 1.166 |
Slovenia | 50 | 21 | 30 |
Slovakia | 74 | - | 20 |
In recent weeks, several countries from Eastern Europe have cautiously contacted Dutch exporters. With still a few months to go, this is a good sign. The demand from Eastern Europe is good news for medium-grade onions in the Netherlands. In recent weeks, the export of medium grades has started to increase; the increasing sales to Eastern Europe is the cause of this.
Rise of local cultivation
Exports to Hungary and other countries in Eastern Europe will become more difficult in the coming years. The Netherlands loses ground almost every year because of the local harvest. As mentioned earlier, Austria has developed well in recent years. If the countries east of Austria follow this example, cultivation in Eastern Europe will continue to improve and the position of Dutch exporters will become more difficult. However, in the end the price will be the deciding factor.Hungary has 10 million inhabitants and is 2,2 times the size of the Netherlands (93.030 km2).