Within the onion market, demand is increasingly shifting from fine to medium and coarse grades. This trend is a major challenge for sorters and exporters this season. Can imports from China solve the problem?
This year's fine onion sorting is keeping the sector busy agrees also Gijsbrecht Gunter, chairman of the Holland Onion Association. It is not the first time that onions have been imported from China, but it remains a trick. It is not entirely without risk.
Transport advantage?
Many Chinese onions are grown in Shandong province, around the city of Qingdao (which is located on the Yellow Sea). A lot of garlic also comes from there. It is located almost 8.500 kilometers as the crow flies from Rotterdam. Insiders mention the advantage that transport costs are currently relatively low, which is due to the falling prices in container transport. The trade dispute between the United States (US) and China is said to be the basis for this.
However, the World Container Index 'Shanghai-Rotterdam' shows a different picture. This is at the highest level in 1 year. A 40-foot container costs $1.870. This spring it was less than $1.000.
Costs manageable
William Nannes of export company JP Beemsterboer is familiar with imports from China. "The costs are currently around €27 per 100 kilos, delivered in Rotterdam. On top of this there is an additional €1 shipping costs. Domestic transport costs €0,75 to €1,25. Apart from the quality and the risk, these costs are manageable ." Another insider hears prices of €29 per 100 kilos in 10 kilo bags. This concerns onions in sizes 60 to 80 millimeters.
Nannes is familiar with the story and knows that onions are currently being imported from China. "Onions are purchased from Singapore from China, at much lower prices than those we have in the Netherlands. The availability and color are good. An alternative could be that onions are shipped directly from China to the buyer, for example in the Caribbean."
Closer to home
The Middle East is also being looked at for the supply of good quality large onions. According to insiders, Spain also has a good onion harvest. Spain is able to serve export destinations such as Brazil, but insiders wonder whether domestic demand is not taking a large part of the onion harvest.