In Northwestern Europe, onion yields are considerably lower. Spain and Ukraine are mentioned to fill the gaps that have arisen. Can these or other countries fill the gaps that have arisen?
In the Netherlands, a reduction in yield of 40% is expected, which amounts to XNUMX% in Germany 35%. However, yields are not only lower on mainland Western Europe, because yields are also significantly lower in the United Kingdom (UK).
The British onion association BOPA recently announced that the British onion yield is no less than 40% lower than last year. Coarseness is also a major concern there. The British retail sector has therefore decided to adjust the dimensions.
Will Poland fill the gaps?
When we talk about filling the gaps in the market, we quickly look at countries such as Poland and Spain. There is a lot of demand for onions in Poland, also from the Netherlands. That demand is driving up prices in the country, even to a 10-year record. Prices average around €37 per 100 kilos.
However, onion yields are also clearly lower in Poland. The Polish Statistical Office estimates a yield of 575.000 tons, which is a decrease of 14% compared to last year. In short: Poland can only serve as a filler to a limited extent.
Is Spain the solution?
After all, Spain is virtually the only country in Europe where growers did not have to contend with drought. On the contrary, the season was wetter than in recent years. Revenues are expected to be at normal levels. On the other hand, the area has shrunk by 4% compared to last year. According to the FEPEX a harvest of 1,3 million tons is expected.
In general, the quality and coarseness in Spain is also excellent. So that's not the point. The difference is in the type of onion. In the Netherlands, onions of the Rijnsburger type are grown (due to the day length). These onions have a long shelf life, while Spanish onions do so to a lesser extent. That is why Spain cannot fully meet the demand. Spain also does not have the transport options of the Dutch sector. However, Spain is entering the market earlier and can respond to the situation in Northwestern Europe.
Does Ukraine make a difference?
The exporters from Ukraine pretend that they can make a difference, because the onions in the country are large; although there are also more smaller sizes. The rising onion prices suggest that there is a lot of demand for the product.
However, onions from Ukraine already have another gap to fill. That is the one on the Russian market. This is because the Netherlands and Poland are no longer allowed to export to Russia. In Ukraine, onion yields are not always great.
Area expansions?
In short: although countries such as Spain and Ukraine want to benefit from the situation in Northwestern Europe, they will also not be able to fill the shortages. In addition, they cannot supply the onions (long-storable) that the Netherlands supplies. Onions will not become available again until the end of March at the earliest, from the southern hemisphere.
If the price is high enough, China and New Zealand will try to profit. However, these countries cannot simply expand their area either. The question is whether a gap will arise before then. Given the current high export pace, this does not seem unlikely.