The harvest of seed onions is in full swing, not only in the Netherlands, but also in Germany, Poland and the United Kingdom. Growers are thus closing the book on another difficult growing season and trying to store and sell the crop as best as possible. The market situation is comparable across the board.
In the Netherlands, a considerable part of the seed onion harvest has already been harvested and largely recharged. Rain showers have thrown a spanner in the works since the weekend, but given the weather forecasts, harvesting work can start again at the end of this week. Characteristic of the 2023 season is that many plots are still very green and have not or hardly been plowed. Thanks to the late sowing date, many crops are not yet sufficiently ripening. Because growers do not want to wait, onions are harvested green and left in the swath for a long time, although sometimes foliage regrowth is visible after a few days. Thicknecks – which are common this year – also continue to grow. Also in storage.
Late rain good for German onions
In Germany, the sowing date is also later this year on average, although this varies per region. Sowing was carried out later, especially in the south. Destatis has not yet published area figures for 2023. Last year, 15.000 hectares of seed onions and shallots were sown. The area shows a slightly upward trend among arable farmers over the longer term. Crops in Germany are also suffering from drought. The onions only really started growing when it rained at the beginning of August. This produces yields that are probably slightly higher than last year, when the yield fell by 13% to 38 tons per hectare. This is now closer to an average of 43 tons per hectare. It is estimated that more than half of the seed onions have now been lifted and loaded.
Disease pressure
The situation for Polish arable farmers is comparable to their German colleagues. The area has been expanded slightly this year, prompted by sky-high onion prices and shortages in the previous season. The price level has stabilized since July, when the first winter sowing onions and onion sets came onto the market. Despite drought, yields are reasonable to good, although there are major differences between irrigated and non-irrigated crops. Quality is also a major issue in crops that are not irrigated. High disease pressure in August did not do the crops any good.
Growers are currently paid between €26 and €30 for industrial onions. Those are certainly not bad prices. About 2 zloty, or more than €40, is paid for onions for consumption on the wholesale market. That is sorted and bagged product. Insiders expect a healthy season because there is no surplus production and the market is expected to have sufficient demand.
25% more exports to Great Britain
By far the largest onion buyer in the Netherlands is Great Britain. Last year, the country imported a record volume of 154.000 tons, after its own acreage shrank and yields were disappointing. An increase of almost a quarter in 2021. Despite more paperwork and checks, Brexit has not caused many problems in onion land. Also in the present export season Great Britain is consistently on the list of largest buyers.
Figures on the onion acreage for this year on the island have not yet emerged. Last year the area fell 8,5% according to figures from the British Onion producers association (BOPA). It is thought that the acreage has recovered slightly this year due to the good season last year and the cooled down grain market. Onions – and other vegetable crops – have become a high-risk crop that not many companies can or want to take on anymore.
Stealing between showers
The yield dropped by almost 2022 tons per hectare in 10 due to extreme drought. This spring was late, followed by a major drought that lasted until early August. Then it got wet and stayed wet, which means harvesting the onion stems between showers. One advantage is that the large vegetable growers in eastern England have hardly experienced a lack of water for irrigation. Thanks to a final sprint, the yields have been able to make up some ground towards the multi-year average, but it will not be a winner. This also applies to the quality, just as is the case on the mainland.
The Netherlands has several competitors on the global export market. The market currently mainly mentions China, which, after the past season with historically high prices, has gained a foothold in many African countries, among others. Spain is another competitor, which has also had to contend with many weather extremes. The most recent is storm Dana, which produced more than 200 millimeters in early September water taken care of in 24 hours. As a result, crops, including onions, have been lost. Extreme drought this summer is estimated to have reduced yields by a fifth. However, growers have sown considerably more onions this year.
High start to export season
The international onion market has started at a particularly high level. Where there was a gradual increase in the 2022/23 season, the stakes are now immediately high. In most European onion countries the harvest is still in full swing, which means there is more than sufficient supply of product. Especially from batches of lower quality, which puts pressure on the local markets. Only when those parts have been removed will air be created, but that may take a while.
Poland – also known as the broom wagon of the Dutch onion market – clearly has more onions available this season. Possibly also more imports from Ukraine, for example. The prices for industrial onions are reasonable, but Dutch onions are now too expensive. Not only competition plays a role in exports to Africa restless in many important sales countries including Senegal. In addition to political instability, there is the increasing challenge of properly paying for those (expensive) onions. There are also many open positions from last season.