News Onions
Supermarket prices rise sharply, but why?
Consumers have been paying considerably more for onions in supermarkets since the beginning of June. Prices have increased by 45% on average. For a net of 2 kilos, the price has even doubled. You also have to pay considerably more for red onions. Is this related to the drought?
The price of yellow onions has been stable in the large supermarket chains since the beginning of this year. Consumers pay about €1 per kilo. From the end of April, that price kept increasing slightly, the Supermarket Scanner† In view of the average stock exchange listing, this is special, because it reached its peak at that time (€9,75 per 100 kilos). That price then dropped to €3,75. Perhaps the supermarkets anticipated the previously purchased batches.
The price of red onions is also on the rise. The price was about 30% above the average in mid-July. The price has since fallen again. Consumers pay a more stable price for the organic yellow onions (€1,40 per kilo). This has to do with fixed agreements between grower, intermediate trade and buyer.
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No link with drought
Are these price increases, doubling in some cases, due to drought? Beurs Goes started listing for second-year onion sets at the end of June. However, by then the supermarket price was already at its peak. Possibly because more expensive onions from New Zealand have temporarily been on the shelf.
Despite a rising price for onion sets (€21 per 100 kilos in week 32 for 60% coarse), onion prices are falling slightly again. Supermarkets to doubt to what extent the drought has consequences for price formation in the short term. At a consumer price of €1,40 per kilo, €0,20 or €0,25 for the farmer is still only 18% of the total price.
Price increase of 120%
There are sometimes significant differences in prices. At Albert Heijn, the price went from €1 to €1,04 per kilo in 1,79 week. At €0,90, the price increase at Plus is even greater, although it has fallen back there since mid-July. Jumbo shows a similar increase. At Hoogvliet it is even worse. An additional €1,20 was added, an increase of 120%. However, the price has been corrected to an average level. At Vomar, the price doubled.
The prices of potatoes are also on the rise. As a buyer, you pay 20% more than in May. Compared to onions, the price increase started later. From mid-June, the price started to rise, to just above €1 per kilo. The price for a bag of 5 kilos is used as the basis. In the previous months, the average price remained stable at around €0,83 cents per kilo.
Niels van der Boom
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