New Zealand has a trade agreement with 14 countries. This Regional Comprehensive Economic Partnership (RCEP) ensures more free trade between the 15 Asia-Pacific countries. This is good news for onion exports from New Zealand.
The details surrounding the RCEP have yet to be announced. Yet Onions New Zealand, the trade association for the onion industry in the country, is already cautiously cheering. It brings new destinations for the export of New Zealand onions. Only India, the world's largest producer and consumer of onions, is excluded from this deal. The RCEP includes more vegetables that can be exported without a tariff wall. The treaty states, among other things, that perishable goods must be collected within 6 hours.
Industry association Onions New Zealand estimates that New Zealand will export $170 million worth of onions this year. This amounts to approximately €98 million. That's a record. The reason for this is the high demand from the European Union, which itself had a very small harvest.
Stable area
The onion area in New Zealand is approximately 5.000 hectares. This is very stable year on year. It is now spring and the sowing onions are often still in the early stages. Harvesting starts in mid-October, although the harvest doesn't really get going until around December. About 200.000 tons of onions are produced annually, of which about 85% are exported. The European Union is the largest buyer of onions (50%). However, Asian destinations are becoming increasingly important.
Despite positive news on the export front, there is also some uncertainty for the so-called 'kiwis'. The United Kingdom is an important destination. If the country is no longer in the European Union, it will have to make new trade agreements.