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Inside Onions

What is the state of the Brazilian onion market?

20 March 2019

In the years with a normal amount of onions available, in addition to the European markets, the South American markets are also monitored during this period. This year, however, there is little evidence of that, mainly due to the problems in our own country. What about Brazilian onions?

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Brazil is the fourth largest country in the world, both in terms of area and inhabitants. Brazil is an important country for the Netherlands when it comes to onions. After the loss of Russia as a buyer (after the 2013 harvest), Brazil filled the gap. In addition, there are plenty of opportunities every season for onion exporters to fill the gaps between the different Brazilian harvests.

Is the weather the cause?
The cause of the disappointing onion harvests can be traced back several years to the weather. For the Brazilians, disappointing onion prices are also a reason to sow less area. In 2019, however, it is mainly the weather (heavy rainfall) that is plaguing onion growers. This results in lower available volume, which causes prices to rise. Grower prices rose to €0,42 per kilo in March, compared to €0,27 per kilo last year. In February the price was €0,29 per kilo.

The upcoming onion harvest in northern Brazil is also currently plagued by rain, forcing the harvest to be postponed. This offers prospects for the onion exporting countries, because they can fill the gaps in Brazilian onion cheese. An important role is reserved for neighboring country Argentina, which has been the main supplier for many years. Whether there are opportunities here for Spain and the Netherlands depends largely on the available quality and the price tag.

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