This season it appears again that the difference between red and yellow onions is large and that they can hardly be compared with each other. Where there is a shortage of yellow onions in Europe, the supply of red seems to be ample. The regional fair in Emmeloord even took a small step down for both coarse and fine size grading.
Confidence in the onion market already increased during the growing season. In many parts of Europe it was extremely dry and yields were disappointing. The ex-field prices were therefore good and onions were soon paid between €25 and €30 per 100 kilos. There was no longer a question of whether or not there was a shortage of onions in Europe, but rather how large this shortage would be.
A yellow onion is not a red one
We should actually divide the product 'onions' into red and yellow onions. The difference between these two types is large, as becomes clear when looking at sales. Besides the fact that the taste differs, the product looks very different and it takes some getting used to by the consumer. Take African countries as an example, where boats full of yellow onions are shipped every season. Red onions have also been shipped and marketed this season, but consumers simply don't want them. They are therefore more likely to pay record prices for yellow onions than to switch to red onions, which are available for half the price. That is no different in Europe. Consumers and industry do not switch from yellow to red onions or vice versa as soon as one of the two is (much) cheaper.
Both sales markets have grown significantly in recent years, but this is no different for cultivation. This is reflected in the increase in area in recent years, but also the increase in export volume. In 2008, 864.000 tons were exported and last season the record of almost 1,3 million tons was set.
Question is left behind
The prices of red onions have been on average higher than yellow onions in recent years and farmers have responded very logically. In several European countries the area of red has increased, proportionately more than yellow. The supply seems to be ample this season - despite the drought. Especially compared to yellow onions. The trend is that sales of red onions start to pick up from February, but that was not the case this season. Demand remained substandard and remained so for a long time. Several consignments had been recorded with the stamp 'delivery in February', but which processors could not actually get rid of. Things are not going very well at the moment on the red onion market and the regional fair in Emmeloord therefore labels the mood as 'bland'.
Germany is one of the countries that purchases relatively many red onions from the Netherlands. To date, they have had sufficient stock due to the expansion of cultivation, although this now appears to be changing somewhat. In addition, demand remains lower on average than we have been used to in recent years. In addition, in previous years, such as 2019 and 2020, a considerable number of Asian countries came knocking on the door for Dutch red onions. India then imposed export bans on red onions after major crop failures to protect the domestic market. Countries such as the Philippines and Malaysia shopped heavily in the Netherlands because they could not get onions from India. This year India has a good harvest and Asia is again supplied with onions from that country. Also striking in the export figures is that the Philippines did not purchase a single onion this year. Whether India has a top harvest or not, the Philippines always purchases a volume of red onions. For example, the counter stood at 2021 tons in the 22/40.000 season. So zero this year!
A wide range of options prevails
It was long thought that prices would rise due to the shortage of yellow, which is why some growers have made the deal to earn €40 per 100 kilos (and sometimes even a little more) in the long term. What has the red onion market shown in recent weeks? Demand lagged behind for a long time this season and in recent weeks there has not been a lot of traffic regarding red. Demand did show steady growth at times, but that is not surprising or special given the annual trend. What is more important is the supply of red onions in the past period. It was relatively large, as previously expected. Confidence among growers therefore decreased when the quotations remained the same for a long time. In the crammed storage sheds it was rumored that quite a few red onions had been stored. Not much later, the rating even took a step down and the mood changed from 'calm' to 'bland'.
The wide range now also predominates on the market. Prices have been under pressure for a long time, actually since March. The supply is simply slightly greater than demand and now that the storage season is approaching, the supply is certainly not decreasing. The confidence in a hit at the end of the season has plummeted for many growers. Although with red onions you shouldn't write it off too quickly at the end. Last week the stock exchange in Emmeloord took another small step downwards. The rough size grading now stands at an average of €34 per 100 kilos. There was no quotation for the fine size grading last week, but it dropped in week 16 to an average of €30 per 100 kilos.
But of course you never know with red onions. In recent years it has also become apparent that a good price can still be caught in May, especially for the last red onions. Germany seems to be entering the market more now that its own stocks are almost empty in the country, but the chance of a price increase does not seem close with the current supply. Bale prices in Germany average €50 to €60 per 100 kilos, for both coarse and fine size grading. That is slightly higher than in the Netherlands.