The onion market is currently quieter than usual around this time of year. This is partly due to the high price level of the Dutch onion and its competitive position. The bale price remains virtually the same as in previous weeks.
Processors are currently quieter than normal at this time of year. It is certainly not difficult or bad, but there are few details about sales. This partly has to do with when buyers arrive on the market. For example, certain countries, such as Senegal this year, entered the market earlier than in other years and have therefore already purchased more. But much more important is that Dutch onions are quite expensive and can hardly compete with other countries. The amount of work has increased slightly compared to previous weeks, but it could also be reduced a notch. It is now clearly noticeable whether or not a foreign boat is moored for the Dutch onions.
Competitive position
Some importing countries currently have cheaper alternatives. An example of this is the Philippines, where many onions went to this period in previous years. Now the Asian country has barely entered the market. They can get cheaper onions elsewhere, such as from China. The same applies to African countries. There we are currently competing with Moroccan and Egyptian onions. However, this does not mean that these countries will no longer purchase Dutch onions, on the contrary. The processors remain positive. The difference in price with other competing countries is sometimes only minimal and they can also sell out. A small price difference can make a big difference. In addition, given the current onion prices, a lot of capital is involved in trading. After all, this must be available from the importing countries.
Bale and grower price not yet in balance
The batches of onions from short-term storage are continuing well, but nothing is being purchased at the farm at the moment. There is sufficient work from the agreements made and the supplies at the moment. In addition, the bale price and the price that the grower has in mind are not always in balance. The bale price certainly cannot increase at the moment and the grower demands a higher price than what he could get during the field period. That is not the case now. There are not many parties above the market, but the supply does put slight pressure on the bale price, according to insiders. This mainly concerns finer size sorting. However, this will not lead to serious price changes.
The DCA quotation for the bale price of onions remains largely unchanged in week 42. An average of €31 per 100 kilos is paid for the triplets and for the 45-65/50-70 average €33. The rough size sorting yields an average of €35 and the supers are sold for an average of €36 per 100 kilos.