A large part of the Dutch onion exporters are only waiting for 1 message at this time of the year: the official opening of the Senegalese market. However, that signal is not necessarily decisive for a number of exporters these days, because often boats with onions are already on their way or have arrived before the border opens. What is the reason for transporting onions to Senegal so early (and therefore on the gamble)?
Senegal has been the largest sales area for Dutch onions for years. When we look at last year (2019 growing season), we see that Senegal stands head and shoulders above the rest as the largest customer of Dutch onions. The volume purchased in that year amounted to 170.498 tons, which is more than 60.000 tons more than number 2 on the list. This also sets the country a new record down.
In previous years, Senegal also played a major role in the Dutch onion market, with sales always exceeding 100.000 tons. At first glance, it is not surprising that Dutch onion exporters want to be the first to set foot here. However, the country also has one (major) problem and that is that the borders are closed to foreign onions for their own cultivation during the period from February to August.
A power play
So why would you send 1 (and reportedly sometimes even 2) boats with onions to Senegal now? The answer is simple: every exporter who exports onions to Senegal wants to be the first to serve the market at all costs. Senegalese people love Dutch onions and are happy to have the product in their range. After all, our own onion cultivation is of much lower quality. When the Senegalese government opens the market to foreign onions, local sellers want to bring the product to the market as quickly as possible. This is a great opportunity for exporters to make money. By 'parking' 1 or more boats in front of the port of Dakar in time, you ensure that there is no more room for your competitors.
In addition, a tour of various traders shows that it is also largely about the power play: who has the balls to leave for Senegal first? Of course, the coin can fall both ways. If you have timed it perfectly, you can earn a lot of money and you can be the first to sell your onions with certainty. After all, the market in Senegal quickly becomes overcrowded. But if you are wrong (for example because the border remains closed for longer), it can cost a lot of money. However, it appears to be a risk that many exporters are willing to take, especially in view of a Dutch surplus of onion exporters. In short: there is plenty of competition and Senegal is a country where you can make a difference.
However, not every onion exporter is happy with this 'competition violence'. There are plenty of Dutch onion exporters who consider the risk too great, mainly due to the fact that payment agreements are not always made with Senegalese customers. In some cases, this means that you have to wait a long time for your money and you must be able to afford that.
Opening of the border
One competition element is the same for all exporters: predicting when the market will officially open. September 1 is often used as a cautious target date, but the Senegalese onion market is leading. The government only opens the borders when its own market is virtually empty. And that is difficult to predict, as all requested onion exporters report. Each exporter has its own connections and must then determine how reliable the information obtained is.
However, hope has now arisen that the committee (which advises on opening the borders) will meet again sometime next week. However, the question remains whether this provides more clarity. All in all, it is and remains a risk to export onions to Senegal at an early stage (read: before the market is officially open). But, if you succeed, you will conquer the Senegalese market. And that is the ultimate goal.