From an onion market where the growers were lord and master, we are now moving towards a situation where the buyer has the final say. That is a change after the last year and a half, when things seemed to be impossible in the Dutch onion sector.
Every year is different, and if you think that certain factors are very similar to those in a past season, the market will react differently. If this is evident anywhere, it is on the onion market this season. For a long time it seemed that we would see a revival towards the spring. It is not without reason that the grower continued to do business for around €50 for delivery in March. Now that it is March, sales are disappointing. Onion orders before the start of Ramadan resulted in some additional exports to countries outside Europe in recent weeks. Now that that has disappeared, it is too quiet in onion exports.
Fill holes
If there seems to be any space available anywhere, exporters are quick to jump in. "We are normally the gap fillers on the international onion market and now we are just creating barriers due to a lack of gaps," said a sorter. Unlike last season, finding someone who wants the onions is absolutely not a given. Good (permanent) relationships for both the grower and the sorter and their end customers can make a big difference.
Prices are under pressure both on the farm and in the bale, but that does not really help to create more demand. The supply of onions that have to go due to quality remains a problem. Germs in particular are a major culprit and can arise very unexpectedly and very quickly. Regular checks are not part of everyone's system. Then people quickly think of growers, but sorters also sometimes forget to visit a cell they have purchased.
De DCA quotation Bale price of Onions shows another decline. It is mainly the means where the problem lies. Sorters have to get rid of them, but few customers want them. If there is some smuggling with the sizes and they are sorted by effectively 45 60, €35 is a bridge too far for buyers. Not infrequently, these are parties where the first sign of growth appears. Exporters also do not dare to send them by sea. Only the top quality supermarkets suitable for Southern Europe are still very popular, with prices just above €50. The price range therefore remains as large as ever.
Read here is the explanation from DCA Market Intelligence on the new quotations.