It feels like a busy week for onion sorting in the Netherlands. However, the picture is a bit distorted by the short working week due to Ascension Day and the following Friday that many packers have attached to it. Because there is less supply, some sorters dare to charge extra. Missing an order now is not a disaster, after all, there is plenty of work.
The spread in grower prices continues to diverge cautiously. The majority of onions that are average and have a story behind them are charged for prices between €10 and €12. Good onions suitable for retail and long-distance transport are practically impossible to buy for less than €15. A single receipt for approximately €18 has already been issued for top quality mechanical cooling delivered in June. Although these are the exceptions, it does indicate that packers have more confidence in the market. In recent months, various players in the onion market have insisted that Dutch onions were too expensive to compete with. Dutch prices are now lower and several exporters are even wondering whether we have dropped too much.
Red is running out
Insiders doubt whether there is much room for upward movement in the price. After all, imported onions are not far away anymore. The red onions may be a little ahead of the yellow ones in that respect. For red onions, there is an increasing switch to new onions, mainly from Egypt. But an important difference with yellow onions is that the supply of red onions has largely run out. There are still plenty of yellow onions. Although it is of course sad for the growers involved, the relatively low prices ensure that business continues. Whether for top quality retail or for the lower end industry.
While the price range on the farm is widening, in the bale the price is converging somewhat. The smaller sizes in the DCA quotation Bale price of Onions pull up a bit while the larger sizes drop a bit. The shifts are not spectacular and quality continues to make a big difference. The optimal distribution in terms of sizes also makes quite a difference in what sorters charge. One person runs 45-65 because he has customers who pay a plus for it and offers the 60-80 competitively because they are 'left over', while another can get away with triplets and 50-70 and the 60-80 is the top prize. asks because he doesn't play it from a party again.
Read here is the explanation from DCA Market Intelligence on the new quotations.