Although the onion harvest isn't quite finished yet, the first seed onions are already being harvested in several locations. This transition traditionally creates a somewhat difficult transition, as both products temporarily complement each other. The most important question now is: what yields can we expect from the seed onions this year?
The yield of seed onions is currently difficult to predict. According to insiders, the earliest-sown onions seem to perform better than the second sowing round. This is because the first crop was able to better utilize the rainfall during the bulbing phase; the rain fell just as these onions were just beginning to bulb, while the later-sown onions weren't ready at that point.
Exports are starting to pick up
The export market has become significantly more stable over the past two weeks, with a significant increase in activity. While trade previously faced declining bale prices and a somewhat more negative sentiment, the market now appears to be slowly recovering, and stability is beginning to prevail. According to insiders, sales to Senegal will begin around week 35. This is several weeks earlier than last year. The fact that exports to this important buyer are already underway is therefore a positive sign. Further exports to Africa and other destinations are expected to gain momentum once more volume becomes available. At the same time, it should be noted that Egypt and China are also active in the African market, creating additional competition.
In the longer term, there certainly seem to be opportunities for Dutch onion exports. Conditions in many other growing regions are, and have been, far from ideal: England has been experiencing prolonged drought, Southern Europe struggled with heat and drought, Eastern Europe experienced a cold and wet spring, and demand from West Africa is already high. Moreover, the Dutch ex-field price is currently competitive. Insiders indicate that sorters are currently very busy and that demand for onions is slowly starting to pick up. However, prices on the direct market are not yet incredibly high. Market reports suggest an ex-field price for seed onions of around €12 to €13 per 100 kilos.
This puts prices in line with those of onion sets; the DCA transaction app recently showed that onion sets were traded for €13 dry, straight from the shed. Regarding the supply for ex-field, insiders indicate that onions are indeed available, but that supply remains moderate. Much more clarity about the actual yields will be available mid-harvest. Until then, it remains to be seen how the rest of the plots develop. What is certain is that exports are crucial and are expected to gain momentum once more volume becomes available.