Onion growers in New Zealand have sown fewer onions for the 2020-2021 harvest. The coronavirus brings uncertainty with regard to export expectations. The country also has a lot of old onions to process. What does this mean for the onion market?
Arable farmers in the country have sown 6% fewer yellow onions, reports onion organization Onions New Zealand. The cultivation of red onions has remained the same. This crop accounts for approximately 15% of the total onion area. It covers more than 5.000 hectares. That's about average. Over the last 4 years, the area has always been around 5.200 hectares.
No top harvest
After a very dry winter, sufficient precipitation fell for the emergence last spring. Then it remained dry for a long time. Rain in November has significantly improved the crops, making the harvest forecast slightly more positive. Onions New Zealand does not expect a top harvest and a smaller volume than last season. The crops were better then and the acreage was larger.
A decrease in area is mainly the result of uncertainty. The consequences of the coronavirus are expected to lead to less export demand for onions. Consumption in the home country is expected to remain the same. The first early onions for the domestic market are now being harvested on the North Island near Auckland. Exports to countries in the Pacific region will start next month. The harvest really gets going in December and January and exports also start.
Trade deals
85% of all onions in the country are exported. Good for around $200 million NZD in turnover last year, the organization reports. Thanks to strong lobbying and a new trade deal, it expects its export position to improve. The Regional Comprehensive Economic Partnership (RCEP) deal was concluded in November. This trade agreement ensures that the country can export onions to Asian countries and Australia without any barriers or import tariffs. There will also be 1 set of rules for all countries.
According to Onions New Zealand chairman James Kuperus, this has a major side effect benefit that the containers of onions are cleared through customs within 6 hours, which improves quality. Exports have already received a major boost from an earlier trade agreement with Australia and Southeast Asian countries (AANZFTA). Since this agreement, exports have increased by almost 600%.