German arable farmer exchanges potatoes for onions

Just like the Netherlands, Germany had a poor onion yield last year due to the drought. The yield dropped from 46 tons per hectare (2017) to 36 tons in 2018. 2019 is also not expected to be a great year due to persistent drought. Where irrigation is possible, the yields are considerably better. German arable farmers are happy with the cultivation and are expanding considerably.

Plus after decline
Last year, the German onion area fell slightly by 3%. The total area for summer sowing onions then amounted to 10.700 hectares. This year there is a significant increase of 7% in the sowing onion area. The estimated area is therefore 11.400 hectares. There are no official figures yet. This area is lower than the area in 2016.

The 2019 figures in the graph above are based on estimates.

In addition to sowing onions, more second-year onion sets have also been planted. The area of ​​red seed onions will increase by 2% this season, insiders estimate. This share has increased considerably in recent years, making the increase in 2019 smaller. Of the total German area, 7% (800 hectares) is red. Organic onions have risen sharply by 20% in percentage terms. A total of 5% of the summer sowing onion area is now organic (570 hectares). The quality of this has clearly increased in recent years.

Regional differences
These figures come from seed company Bejo Germany. "Different increases in acreage are noticeable regionally," says director Pieter Gabriëls. Inquire among growers Boerenbusiness shows that in North Rhine-Westphalia the area is increasing by 10% to 15%. Gabriëls agrees with these figures: "More seed onions are certainly grown in this state, but we have also sold more onion onions. This market segment is now being filled with onions from New Zealand. There is certainly demand for them."

Lower Saxony has the largest share of onion cultivation (2.500 hectares in 2018), followed by Bavaria and Rhineland-Palatinate. North Rhine-Westphalia (NRW) comes in 4th place. Gabriëls only sees expansion of cultivation when irrigation is possible. "In East Germany, roughly speaking along the lines of Magdeburg, Leipzig, Kalbe, it is again extremely dry. Last year onion plots were plowed there. This year it is slightly better, but only when it can be rained. This is not possible everywhere. "I estimate yields in the east at 30 to 40 tons per hectare, compared to 0 to 35 tons last year."

Varying Yields
Things are better in the west. "We also saw yields of up to 80 tons there last year after 6 irrigations. The onion onions have done well this year with 60 to 70 tons per hectare. That is why I expect the seed onions to also produce a good yield, although this will remain the case due to the drought. below average.

More and more potato growers are choosing to start onion cultivation. The reasons for this are clear, Gabriëls explains. "In terms of cultivation and marketing, the crop is close to potatoes. The companies that trade in potatoes are often the same as those that trade in onions. These companies can also irrigate and have invested in this. Switching cultivation takes pressure off the potato market, so that the area is not growing too fast. Customers therefore see it as a good alternative."

Huge vegetable imports
After tomatoes and carrots, onions are the most eaten vegetable in the country with almost 83 million inhabitants. Germany is far from self-sufficient and imports large volumes of vegetables. The country consumes 3,5 million tons of vegetables annually, compared to an import of 3,2 million tons. With 1,2 million tons, the Netherlands is by far the largest supplier. With 230.000 tons, the onion is the 5th most imported crop. Carrots are just above that at 240.000 tons. Last year, the Netherlands accounted for 42.000 tons.

Regionality is becoming increasingly important in the German market. Supermarkets and consumers attach great value to products grown in the region. This creates a healthy market from which German growers can benefit. According to Gabriëls, they like to supply German chains. Despite the discounter image of Aldi and Lidl, the grower can generally make a good price. Agreements are made with growers, but fixed price contracts are usually not included. That remains a free market.

Onions remain popular
This market movement is negative for the Netherlands. The organic segment in particular notices that Germany asks for products from its own region first. Nevertheless, Gabriëls sees opportunities for our products, although more efforts need to be made to find openings to be able to supply. He does not expect a structural contraction in consumption, but rather a stable upward trend.

"I have been working in Germany for 12 years now and I see that onion and carrot growers have made great strides," he explains. "The product quality is now excellent. This was an issue decades ago. Top yields are being achieved in NRW and Lower Saxony. In the former East Germany, there are still great strides to be made. The yield is structurally too low due to prolonged drought. Investing in irrigation is possible bring something extra there, although this is not always possible. Large former state-owned companies are focused on cultivation costs. In a number of cases, this switch still needs to be turned. The comparison is made with wheat and maize. They require lower input costs, because, for example, spraying and seed are not that expensive. However, in a dry year these crops also do not yield money."