The 2019 cultivation season is almost over. Earlier than expected, the onions on the Dutch market seem to be running out.
The battle for the last onions broke out last week. This battle is still not over, as the price increase continued significantly last week. The volume of good Dutch onions is slowly starting to run out and alternatives from other countries are currently still limited.
Many packers are surprised that there are so few good onions available. For a long time it was thought that there would be stock until mid-June. A possible explanation for the premature depletion of Dutch onions is that the industrial market in Poland has purchased many onions this year. These figures are no longer added to the export figures. With today's science, the industrial market in Poland could easily be the largest buyer in the Netherlands.
Giant steps at the fair
Stock market prices are making another giant step up this week. In connection with Ascension Day, the stock exchange committee in Emmeloord published the listing a day earlier this week. On Wednesday they recorded €30 to €60 for the 18-30% sorting and €60 to €19 for the 30% upward sorting. Moreover, the stock exchange committee in Emmeloord describes the market as fixed, which means that supply is smaller than demand.
Higher bale prices
The enormous increase in farm prices has forced processors to also increase bale prices. These are now around €30. An overview of the bale prices can be found in the DCA quotation Bale price of Onions.
Export demand mainly comes from Europe and a small part from Africa. Within Europe, it is the quality destinations and retail, as well as the Eastern European destinations, that are now asking for Dutch onions. With the increase in the bale price, it is likely that the latter category of customers will drop out.