Confidence in the onion market in the short term was not very high among sorters. That hasn't gotten much better this week. The disappointing export figures in the first week of 2024 were particularly damaging. Whether that is correct remains to be seen. There are several signals that indicate a turnaround is coming.
After the Africa season, there is often a gap in Dutch onion sales. We just weren't used to that the last few seasons. Another one came this week disappointing export figure over which reinforced the depressed mood, whether justified or not. As a reminder: in 2018/19, exports fell well below 10.000 tons around the turn of the year, and this was followed by a good price-wise second half of the season. Both the acreage and the yield were a lot lower in the 2018/19 season, so that comparison with the current year is not entirely valid.
Dutch sorters now appear to be in line with other countries in Europe in terms of bale prices. The big bag price for onions in Germany remains stable at around €45 to €48 per 100 kilos. In Austria, the Landwirtschaftskammer Österreich (LÖ) paid €42 to €47 for sorted onions for the third week in a row. For exports to Eastern Europe, the Netherlands is at a disadvantage compared to Germany and Austria due to higher transport costs. For example, France or Scandinavia are no longer so different.
Turnout turnaround?
Due to the quality problems with onions in virtually all of Europe, it is expected that the European bale price may increase in the coming weeks. To illustrate: last year it also took until February before the market started moving. The Fruit Logistica, which will be held in Berlin in two weeks, could be the starting signal for a new rally. According to Dutch sorters, something is urgently needed to happen. Grower price and bale price do not fully correspond. Although some growers are willing to make concessions on the often inferior onions for direct delivery, really good onions for delivery in February and March are practically impossible to buy for less than €45. The remaining alternative is to increase the bale price. It's just not that far yet.
De DCA quotation Bale price of Onions has certainly not yet found its way to the top. Coarse sizes hold up better than the finer ones. It is mainly the price for middle and triplets that is under pressure. Some sorters make the media somewhat coarser, because it is then easier to sell them in Southern Europe. The result is that relatively many triplets come from a batch that sells poorly. Because there are deviations from the standard grading left and right, it is difficult to get a good idea of a realistic average price for a batch of onions.