Onion market is coming out of its shell

That there is a major onion shortage in Western Europe was confirmed again this week. In Germany, stock figures are 35% lower this year than last year and British onion yields are 40% lower. To top it all off, CBS announced their preliminary harvest estimate last week. 

The figures from Statistics Netherlands show an average onion yield of 32 tons per hectare, which should bring the total gross yield for seed onions to 811.392 tons. This is a loss of revenue 44%, compared to last year.

More 'pivot' in the market
After a few quiet weeks, the market seems to be slowly regaining some momentum. In particular, fine onions and medium-sized onions are growing well. These are often exported to Africa and at an average rate weekly export The exporters do not seem to be holding back from 21.000 tons; despite the major shortages. As long as Africa is on the market, this destination will be served as much as possible.

The export engine occasionally showed some hiccups in previous weeks and fewer onions were shipped. However, exporters and processors continue to operate and it is expected that weekly exports will remain above 20.000; provided Africa is on the market. This also ensures that many onions are purchased in the long term. Processors and exporters want to get their hands on enough onions to be able to meet their obligations later in the season.

Bale prices need to take a step
The bale prices show no changes. For the 45 to 65 millimeters the price is €32 to €33 in the bale and for the 50 to 70 millimeters the price is €36 to €37. Prices for the 60 to 80 millimeters remain around €38. The difference in prices between the medium grade and the triplets is large. For sizes under 50 millimeters, €21 to €24 is charged (depending on the destination).

If the processors (who have purchased onions in the long term) want to make a profit on their product, the bale price will have to increase in the coming weeks.

Emmeloord notes a minus
For the first time this season, a small minus was recorded for large onions in Emmeloord. While the price last week was €30 to €35, the top of the quotation in Emmeloord this week remained stuck at €34.

When all 3 regional stock exchange quotations are compared, €0 to 30 is quoted for 19% to 24% large onions. For the 30% to 60% large onions the price range is €24 to €31 and for the 60% upwards the quotation is €30 to €35.