Dutch onion exports showed a significant recovery in early December after the dip in the last week of November. The major difference is in exports to Senegal.
According to preliminary figures from KCB and GroentenFruit Huis, a total of 12.000 tons of onions were shipped to Senegal in the first week of December. The previous week, this amount was just over 3.200 tons. This means that whether a shipment is counted in the first or second week makes a significant difference. A few days' delay in a shipment significantly impacts the weekly figures.
On average, around 7.500 tons of onions were exported to Senegal in late November/early December. This aligns with the estimates packers and exporters had for exports during that period. They predicted weekly exports of just over or just under 30.000 tons.
In the last week of November, total Dutch onion exports stalled at 24.637 tons. That was a disappointment. The figure for the first week of December was announced today, which amounts to 34.043 tons. Averaging both figures results in just under 30.000 tons. This fits the picture outlined earlier.
In weeks 46 and 47, Senegal was overflowing with Dutch onions. In this short period, more than 32.000 tons of onions were delivered to the Dakar quay. The logistics chain there couldn't handle this, and pallets were left waiting for onward transport. This put buyers on the brakes, and Dutch sellers clearly noticed.
This situation also had major consequences for onion pricing in the Netherlands. Instead of prices gradually rising with the approaching Christmas holiday, price pressure arose. This paralyzed the market. Although onions were far from expensive, buyers still feared they would be too expensive. Buying now and finding out tomorrow that it could be cheaper doesn't suit them.
This situation has resulted in lost sales opportunities. In their haste to avoid losing market share, Dutch sellers have overreached. By oversaturating the African market, the Dutch onion sector has seriously hurt itself. This has resulted in a significant loss of sales volume and margins within the supply chain. The latter must be particularly painful for sellers.
Hindsight is easy, however. The prevailing assumption was that the onion hunger in Africa this year couldn't be satisfied due to the highly competitive prices. However, once again, there appears to be a limit to the absorption capacity of the main markets for Dutch onions. That limit is incredibly high, but thanks to the enormous processing and logistics capacity from the Netherlands, that level has been reached. With all the consequences that entails.