Interview Michael Boons
'Onion pool offers added value, especially in extreme years'
Memorable, that's how we can already call the onion season 2022/23. And although the season is not over yet, growers are already busy with the upcoming harvest. The weather just isn't cooperating yet to sow onions. In addition to the land work, this is also a time to think about the sales strategy. Do you keep the onions free, do you grow (part of) on contract or do you opt for a pool? If the choice falls on a pool, the choice has been expanded this season with three pools from Uienhandel.com.
The 2022/23 season was mainly characterized by a rising market for a long time and even reached the €1 limit. These high prices also have an effect according to the season. Some growers looking for certainty have already secured onions for the new harvest from around €15 ex-country up to €20 for delivery from short-term storage. A remarkable moment to launch three new pools, you would think. Nevertheless, we should not underestimate the added value that a pool can have for the grower, according to Machiel Boons of Uienhandel.com. "Especially in a season with extreme price movements up and down, a pool can be a good instrument to hedge against the extremes in the market."
Risk management
There is no trade in beet, wheat is often sold in the buyer's pool or at the daily rate, and potatoes are largely sold through contracts or in a pool. For many arable farmers, onions are one of the few truly free crops. "An important part of the arable farmers thinks that the free nature of onion cultivation is precisely the charm of that crop," says Boons. "There is also a group of growers who feel less comfortable with that. The risks are particularly high in a season like last season. Selling a week earlier or later just saved €10 per 100 kilos last season. With a pool you flatten those peaks and go down a bit." Because there is a demand for it, Uienhandel.com is expanding the pool supply. In addition to the off-road pool for red seed onions, there will be an off-road, short-storage and long-storage pool for yellow seed onions from the coming harvest. "By selling the onions through one of our pools, as a grower you are assured of a buyer for the onions," says Boons. "In addition, you are also on the market for the entire sales period of the pool and you don't have to worry about the peaks and troughs in the market. We have an extensive network of buyers and can bring the right buyer to the right party, which benefits the result of the pool. And not unimportant: we ensure a quick and correct settlement."
Jurphaas Lugtenburg
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