Where the Spanish onion season started last year with low prices that barely recovered, the season is completely different this year. Due to persistent rainfall in the spring, yields are lower. In addition, growers are struggling with quality problems. Prices at the beginning of the season are actually considerably higher than usual.
According to Agriseeds, Andalusia has had exceptionally heavy rainfall this spring. This led to leaf problems and stunted growth of the onions, which has resulted in smaller sizes in particular. Sowing in February and March was also delayed, which has affected later harvest areas, such as La Mancha. The expectation is that the high prices will continue for the time being. Only towards the peak of the Spanish harvest, in August and September, could the larger supply from other regions put pressure on prices.
Trade seeks alternatives
The price difference has caused some traders to switch to alternative suppliers. Agriseeds points out that Egypt and Turkey are currently supplying onions that, including transport and packaging, are cheaper than Spanish onions. Egyptian onions currently cost around €0,50 per kilo, compared to around €0,80 per kilo for Spanish onions.
Agriseeds emphasizes that import is not a problem in itself, as long as the consumer is well informed and has a choice between domestic and foreign products. According to Agriseeds, Peru remains the most important source for sweet onions. Spanish onions often lose quality from February onwards, after which retailers switch to imported onions. During that period, the supply comes from New Zealand, South Africa and Chile, among others, but Peru has positioned itself strongly in recent years.
Peru maintains strong position
Peruvian sweet onion cultivation has been around for about thirty years and benefits from a favourable climate. As a result, the country can supply from July to March. Peruvian exports now include not only the flat sweet onion, but also a round, firm variety with a light skin that is steadily gaining market share. Thanks to the early availability in January and February, Peruvian growers have a clear competitive advantage.
Peru is now considered the largest supplier of sweet onions to both the United States and Europe. Although countries such as Senegal and possibly Egypt in the future are building up their exports, the consistent quality of Peruvian onions has not yet been matched. With a presence nine months a year, Peru remains the market leader in this segment for the time being, according to Agriseeds.