Onions from New Zealand are less popular in Europe

The European Union is the most important sales market for New Zealand onion exporters. Approximately a quarter to a third of onion exports went to the EU in recent years. It is not surprising that there was a lot of enthusiasm in the New Zealand onion sector about a new free trade agreement with the EU. As of May 1, the 9,6% levy on onions has expired. With the expiration of the levy, approximately 35.000 tons of onions could be sent to Europe duty-free this season, according to Onions New Zealand. This would result in approximately 3 million New Zealand dollars (approximately €1,7 million) flowing into the sector.

Obstacles
The high expectations were just not met. As is known, onion prices in Europe have fallen significantly in recent months. In addition, transport from New Zealand has become more expensive due to the problems in the Red Sea. As a result, New Zealand exporters have not been able to get their foot firmly in the door on the European market. Up to and including week 18, 'only' 45.722 tons have been exported to Europe.

Some exporters are noticing that there is another social trend that is not working in New Zealand's favor. Supermarkets focus more on local products. As long as there are enough good onions in Europe, the switch to a new harvest from the other side of the world will be postponed. The gap between the old harvest from Northern Europe and the new harvest from the Mediterranean is therefore becoming smaller. That is exactly what New Zealand needs.

The moderate demand from Europe is not the only setback for New Zealand exporters. Indonesia introduced new phytosanitary rules this season. This has not made the export of onions to Indonesia any easier. This in a season where New Zealand has to rely more than ever on demand from Asia. The red onion market is healthy according to some sources from New Zealand, but yellow onions are not doing well.