Searching for a new balance in the onion market

Many packers are not at all busy. It is hard to get orders according to different sorters. Africa, especially Senegal and to a slightly lesser extent Ivory Coast, were the major buyers of Dutch onions. Now that there is less demand from that quarter, various sorters are calming down. If exports are going well in the first half of the season, the maximum Dutch sorting capacity of 45.000 tons or more is desperately needed at times. In the second half of the season when volumes decrease, this large capacity hangs almost like a millstone around the neck of the sector. It is not easy for everyone to receive enough orders to be able to operate profitably.

Everyone has their own thoughts about that. Some sorters look for lesser lots with ditto prices and spend time and attention to make something of them. Others (out of necessity) live on onions that have been previously recorded and then take a very narrow margin for granted. Some extra work is also done here and there in the small packaging. That took up too much time in December, but now there is room.

Fight for prize
Within Europe and the United Kingdom, quite a bit is going away. We are not talking about volumes that are comparable to loading a boat for Africa. Southern Europe wants large golden onions and they are not in abundance. The triplets and means that come from such parties also need to be given an owner again. According to several exporters, Dutch onions are too expensive compared to other players on the European market. Sources well versed in the German market speak of big bag prices for sorted onions of around €45 to €46 per 100 kilos. For Dutch products, exports to eastern Europe naturally require additional transport compared to German packers.

De DCA quotation Bale price of Onions is also taking a step back this week. In the triplets and middles this is mainly due to declining demand from Africa. With the supers and coarses, we have to find a level at which European buyers really connect.