Inside Onions
Can Spain serve the coarse onion market?
Many European countries not only have to deal with considerably lower onion yields, but also an extremely fine size range. Southern Europe, on the other hand, has a moderate and wet growing season. As a result, the yield in Spain is average to good. Can Spain serve the market for large onions and thus sideline the Netherlands?
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Choose the subscription that suits youOnion cultivation in Spain is spread throughout the country. From the Mediterranean coast to the far northeast. In addition to early (non-perishable) and mid-early and late varieties (with a shelf life of 6 months), an enormous diversity of varieties is grown. In addition to yellow and red, also white, pink, sweet, spring onion, shallots and garlic.
Onion harvest not completed
The onion harvest has moved from the south to northern Spain. Cultivation there runs parallel to the Netherlands. In mid-October, there are still many onions in the fields in the Castile and León region. The area in the region amounts to around 1.700 hectares, out of a total of 14.000 hectares of mid-early and late onions in Spain. Storms with lots of rain and hail have ensured that there is no rainfall shortage this season. The yield is therefore expected to be slightly lower. The weather also plays tricks on the harvest.
It has rained a lot locally since the beginning of September. October is also wet, so onions are still harvested or loaded. Onions left in the swath for too long become soft and deteriorate in quality, according to an insider who is currently traveling through Castile and León. "The plan is to load the onions and manually sort out the hard onions," he says. "They can still go to the peeling plant, for which they pay €20 per 100 kilos. The onions are delivered sorted in big bags.”
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Prices have risen sharply due to the difficult harvest season. In mid-September, the price for onion growers was still between €18 and €20 per 100 kilos. The impending harvest then depressed the price level. Good coarse and dry lots are now being paid up to €45 per 100 kilos, reports a grower in Medina del Campo, north of Madrid.
Export volume
How many onions are ultimately available for export depends on several factors. Roughly 60% to 70% of all onions are used for our own production and processing. The rest goes for export. Mainly to other European countries, but also Brazil where Dutch and Spanish onions compete with each other.
In the export rankings for 2017, ranked by export value, the Netherlands is in first place with $546,6 million. Good for 1% of global onion exports. That appears from Numbers of the WTO. China is in 2nd place with $507,2 million (16,3% market share). Mexico comes in third with a 3% market share. Good for an export value of $12,4 million. Spain is in 386,7th place, with $7 million in 130,4. That is good for a world market share of 2017%. This makes it the highest ranked European country after the Netherlands. France is also in 4,2th place in the top 10. With the arrival of better storable varieties, exports from Spain are increasing.
cost price
It is important for the onion growers in Castile and León to get the onions from the land now. When it dries up, the sandy soil can be easily entered. Frost is also lurking. The onions are grown 900 meters above sea level, which means that it can freeze quite a bit in October.
A price of €45 is top in Dutch eyes. With a yield of 80-90 tons per hectare, this Spanish area can keep up with the Netherlands. This year the yield is lower. A high yield is only possible if there is a lot of irrigation. In potatoes and onions twice a week is not unheard of. The cost price is largely made up of irrigation costs, for which pivots and sprinkler systems are often used in Castile and León.
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Spain can supply the so-called 'Grano' onions until March for worldwide export. Compared to the Dutch onion, they are coarse, but the quality is currently a concern. In addition, there is the price level. After March, New Zealand onions can take over. The harvest there last autumn was very difficult due to excessive rainfall. The winter was relatively dry and the spring on the South Island was fine. Dry, with frequent showers. The emergence and initial development of the seed onions for the 2019 harvest has therefore been excellent. However, it is far too early to make a forecast for the final harvest.
