The onion yields are not easy in Europe this year and that is also reflected in the prices that are paid. These are considerably higher than in other years and the supply may become meager towards the end of the storage season. Because how many onions have been harvested less in Europe and which country determines the European onion market?
Last growing season it became clear early on that the European onion yield would not be a great one this year. The south of Europe had to deal with extremely dry weather early on and the rest of Europe was also on the barbecue later in the season. In addition to the disappointing kilos per hectare, the size is also disappointing. Another factor that plays a role in the total yield is the shrinkage of onion cultivation. In several European countries the area is shrinking by a few percent to up to 9%, as is the case in the Netherlands.
In the Netherlands, 300.000 fewer tons of onions are expected this year than last season, various parties in the onion sector estimate. Statistics Netherlands estimated the gross yield at an average of 44,2 tons per hectare, which is below the 5-year average. A figure that appears to be quite realistic according to several sources. If you multiply the yield times the number of hectares, you arrive at approximately 1,2 million tons. Last year that was 1,5 million tons of onions.
Germany: Fine sorting and fewer kilos
In Germany, the drought and heat have clearly taken their toll. It was also not possible to irrigate everywhere, which cost several kilos. In addition, an area shrinkage of 8% is also reflected in the yield figures. In recent years, between 500.000 and 600.000 tons of onions were harvested and this year it is probably less than 500.000. A German sorter reports that this year's harvest will be 20 to 25% lower than last season and that the size sorting also leaves much to be desired. The Bavarian State Agricultural Research Center confirms that estimate. According to the research, the total harvest volume in the state of Bavaria is 26% lower than last season. The size sorting makes it clear that only 13% of the onions are 70 mm upwards compared to 22% with the long-term average. Towards the end of the season, sorters expect a scarcity of homegrown product, especially the large size. This partly has to do with the quality, which is a cause of concern. First the extreme heat and drought, followed by precipitation during the harvest, did not bring much good to various parties. In addition, the high temperatures of recent weeks have also had a negative impact. The prices paid in Germany for yellow onions are a fraction higher than they are in the Netherlands.
Poland
Another major player on the European onion market is Poland. The onion market there is currently very heated and never before have onions been priced so high early in the season. Official harvest figures have not yet been released and the last forecast from Poland's central statistics agency GUS dates back to July. From that month onwards, drought and heat ruled the rest of the growing season. Several sources indicate that the yield will be less than last season. In certain areas, a 30% lower yield is assumed.
France also has a share in the European onion market with an average of 600.000 tons of onions. According to the French ministry, 90% of the cultivation is concentrated in the north of the country. The onions were on the barbecue there, but it was not burning as hard as in the center and south of France. Irrigation has also managed to save part of the crop. In terms of yields, 20% less than last season is taken into account. Every year the country imports more onions than it exports. That difference will only increase this season given the yields.
Spain
In Southern European countries it was bone dry early this season. In Spain, which produces 800.000 tons of onions annually, the yield is 30% lower. There are hardly any onions in the coarse size range. This is reported by Procecam, an association of onion growers in the largest cultivation area in Spain. Here too, the area took a step back this season, probably a result of the low return achieved last season.
From a European perspective, Spain grows relatively many onions compared to other countries. The country therefore exports a large part of the volume (400.000 tons in 2019) and this is expected to be less this year given the yields. Germany and the United Kingdom import 100.000 tons from Spain annually. So it is clear that onions will have to come from elsewhere to fill this gap.
Opportunities in export
The lower yields and the current price level are causing changes in the import and export flows of onions. Exporting countries have less volume available and this must be filled by others. The high price level, both the product itself and the transport costs, also have an influence and that creates opportunities for other countries such as Morocco. That country competes with Europe on the continent of Africa, while this is not the case with lower prices. Even Southern Europe is an option with the current price level. In addition, trade flows in Europe are also changing due to the war situation in Ukraine.
For the time being, there is sufficient stock in Europe to process. But when it comes to the second half of the storage season, there are probably many opportunities. Large batches in particular can become very scarce as the storage season approaches the end. In the Netherlands, the size sorting does not seem to be that disappointing compared to other countries. Quality will also be decisive in the 2e half of the storage season. Will they be problem areas from January that need to be cleaned up as quickly as possible or can they be kept until April? It is clear that the stressful growing season is already showing its signs in storage.