Interview Michael Boons
'Uientender gives free market more space'
The first onion tender ever went over 48 times in 3 hours. It is enough reason for trading platform Uienhandel.com to launch a new tender. This (for the onion market) new trading method is generating both positive and negative reactions. Tender manager Machiel Boons explains what makes a tender so attractive for buyer and seller.
Onionhandel.com wrote the very first on Wednesday 30 May onion tender ever out. Interested parties were given the opportunity to sell their onions for €11,50 per 100 kilos. The delivery times varied from January to May 2019. A storage fee of €0,10 per 100 kilos applies per week. After 24 hours the tender was full. He then flipped 3 times in 2 days. In the end, 3.000 tons of product were captured. Machiel Boons of Uienhandel.com explains what makes this sales method attractive.
You issued a second tender on Monday 11 June. Do you expect a lot of enthusiasm again?
"The speed with which the first tender was filled ultimately led to more interest. This made it possible to introduce a new tender. The volume of this new offer has increased, but the quality requirements have remained the same. Sellers can register for more information. We will keep them informed when a tender is launched."
What makes this method of selling so attractive?
"Uienhandel.com has the connection with growers. We can switch quickly; just look at the speed with which the first tender was completed. This is pleasant work for both parties. Moreover, the trade is completely transparent (price and conditions are known in advance). This is striking in a market where a lot of trade takes place in the shadows. A buying party exposes itself in this way, but not everyone likes it. For onion growers it is an instrument to hedge their risk. That is unique."
Pure benefits you would say. However, there was also considerable criticism. Where does it come from?
"The main reason for criticizing was because of the timing. The onions still have to grow and nothing is known about the market development. If you put out a tender during the sales season, acceptance is probably also greater. We have mainly positive responses received. The speed with which it was completed shows that there is enthusiasm for it."
In the future we will have to deal with onion tenders much more often?
"If it is up to us, yes. We prefer to work with multiple buyers. We have a nationally-covering member base of more than 400 onion growers. A sorter or commission agent does not always have access to this. Moreover, they do not always want to provide all the details. come to the fore. With us as an intermediary, you remove that threshold. Buyers can define the quality and avoid discussions about the price. The current tender is issued nationally, but this can also be region-specific."
Suppose I have registered for the tender. How does it work then?
"Uienhandel.com only acts as an intermediary. The buyer handles it further. They come to see the lot to see if it meets the quality requirements. We ask both the buyer and seller a commission for our service. or record the number of loads. The handling is done entirely by the buyer."
In addition to the tenders, you offer an online marketplace for onions. How did the season go?
"The platform has been around for a number of years, but last year it got a face. The trade for this season is coming to an end, a number of parties are still going to the Eastern Bloc. I am very satisfied with our season. we have to get a place in the market; with 20 buying parties I dare to say that this has now happened. In addition, there are more than 400 growers active on the platform. Anyone who puts effort into placing a lot always benefits from this. You see that these parties quickly find a buyer. It concerns an asking price that suits the market, good description and sampling. We are currently evaluating the season in order to make improvements for the new sales year."
Niels van der Boom
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