The Dutch onion market hinges on demand from abroad. This is evident once again. The first shipment to Senegal is scheduled, and sorters and exporters are feeling a bit better about the situation. Due to the relatively expensive onion sets they've been producing so far, they're not exactly enthusiastic about buying whole batches directly from the farmer.
Growers in the north will find it hard to imagine, given all the rain that has fallen there, but in the south of the country, a considerable number of onions were harvested and loaded again this week. However, that doesn't mean the grower's market is also extremely busy. Sorters are buying, but preferably locally and, if possible, not at top prices. Most are still struggling with the relatively expensive stock they've sold off in recent weeks. Now that most are running out of those more expensive onions, the mood is starting to improve.
Quality
What also helps is that the quality of the onion sets is generally good. Of course, there are occasionally some issues, but the majority are practically flawless. "In a declining market, customers are always looking for something, but the fact that we receive virtually no claims speaks volumes to me," says an insider. Two years ago, frequent irrigation was cited by many as the reason for the quality problems that existed then. This season, we're also seeing plots of onion sets that may have been irrigated ten times but are now completely flawless. "Perhaps the fact that it remained dry until the end of the growing season saved the onions," a sorter speculates.
Just as the onions were early, the large bulk of seed onions will also arrive a week or two or three earlier than usual, it seems. The high temperatures forecast for next week could well give the plots that are still relatively green the final push. Sunburn is always a risk in such weather. Fortunately, the weather forecast doesn't predict clear blue skies, but rather some cloud cover.
Additional question
On the demand side, there's likely to be a peak next week. Several individual containers have already been shipped to Senegal, but the first ship to the West African country is scheduled for next week. The border isn't officially open yet, but it's expected to open around August 22nd. August 13th is a religious holiday in Senegal, where onions are traditionally eaten in abundance, and it's expected that onions from the local harvest will be nearly gone. With two more holidays coming up before early September, exporters are confident that demand will improve in the coming weeks.
The DCA Bale Price for Onions remains relatively stable this week. Only supermarkets are taking a significant step back. The onion sets are relatively large this season, and demand for large sizes is limited. Sorters with a lot of regular work are keeping prices relatively stable, but sorters with more loose work, seeing their inventory for the drying wall grow, are willing to lower their prices to maintain sufficient volume.
Read here is the explanation from DCA Market Intelligence on the new quotations.