A flat start, now and then a deep valley, and high peaks towards the end. This is how Remko Wilms of the Flevo Onion onion pool describes the 2019-2020 season. In the end, the price shot up sharply and the pole could benefit from that.
Many onions were no longer available during this latest revival, which partly explains why the price rose sharply. Coupled with an export record, the market for yellow onions is emerging well, says pool manager Remko Wilms of Waterman Onions. "The Polish sweeper has been chasing the market all season. You need leaders at the top but also at the bottom. We have benefited from that."
The moment of harvest determines sales success
For week 13, Flevo Onions achieved a result of €16,27 per 100 kilos in their long storage pool. Red amounts to €24,03 in the same week. There was no coarse table last season. "Quality was leading this year and that was also paid for," said Wilms. "Throughout the season, the onions looked 2 months older than they actually were. Bald and soft onions and lots affected by fusarium. This resulted in a lesser color, which posed challenges. For large lots, there was less added value compared to the loss of food service customers. other years. Due to the corona crisis, retail started asking for more onions. They are looking for a finer product of good quality."
The prices quoted include Global Gap compensation. For red, all batches are kept in crates and delivered with the certificate. In yellow, that volume increases. The tare percentage of red in the pool is 6,8% on average and that is good. Yellow was slightly higher at 8,9%. Ultimately, 1 party was removed from the pool. The last onions were delivered in week 25. Over this sales period, the Emmeloord stock exchange averages €15. The pool is therefore €1,27 above this for yellow.
The returns for the pool participants were good compared to the national average. Only in the north, among growers in Groningen, was it a bit disappointing. Ultimately, the average yield of the pool participants will be slightly below the multi-year average, Wilms thinks.
Red onions a madhouse
The red onion season has been very special. "It was madness from November onwards," Wilms reflects. "Due to heavy rain in India, there was a huge demand from this country, which meant that other countries in Central Asia were also on the market. The price shot from €17 to €30 in 1 week. That is unprecedented. A high price level was maintained for a long time kept going, but when demand also collapsed here due to the loss of food service customers, the price fell sharply and the latest quotations fell below those of yellow onions. At the beginning of July, it is estimated that there are still around 3.000 tons of red onions available. , for which there is hardly a buyer. The question is therefore whether the area of red, which is expanding year on year, has not reached its ceiling."
Every area has its own problem
Nothing can yet be said with certainty about the emergence and potential yield of the onions for this season, but; "Every cultivation area has its own problems. Sometimes these problems are even a minor disaster at plot level," says Wilms. "On the heavy soil, emergence was a problem, although plots - whether bi-crop or not - have now grown considerably. In the NOP there are problems with the onion fly and in the northeast of the Netherlands there was heavy hail that caused damage. On sandy soil there is dust damage and nematode problems.
All in all, we currently calculate a 15% to 20% lower onion yield nationally this year, compared to the multi-year average. The lack of clarity could cause problems later, especially with MH spraying." The onion man is not completely negative. "A few weeks ago we had scenario 2018 on the table. Crops are now growing and things seem to be better."
Containers available, rates drop
It is difficult to make statements about the coming sales season. The availability of refrigerated containers (reefers) is in good order again. Wilms: "Top buyer Africa is also affected by the corona crisis. The countries on this continent are going to buy onions again and onions are also going there. With the chance of the virus flaring up again, this sales season may be more exciting than ever. When the crisis struck here, we were in the European export phase. This means that many orders are collected by truck, the impending danger of closed borders has had a strong grip on us. This scenario did not become reality due to adequate intervention by various authorities and Onions could, especially given the circumstances, be exported almost as desired. Orders from retail continued to come. Things can also turn around quickly, as we have noticed."
More Polish onions
In addition to Africa, the Dutch onion must find its place again in Asia, where cheaper Chinese products are now traded. Wilms has a good feeling about Central America. Europe now feeds on its own harvest. ''Poland has a more favorable growing season compared to the past 2 years. However, the position of this country in the Dutch market is crucial," Wilms refers to the aforementioned broom wagon function.