Are the bad onions getting in the way of the good ones?

Growers have had more confidence in the onion market than processors for almost the entire season. This remains the case this week. Carnival is over and Lent has begun. With that, we've covered the C of the onion ABC, and the market can rise again, some growers reason.

The trade isn't very busy. Business is happening, but in many cases, it's for onions that the grower will have to sell off soon. "If you see a yellow tip in the onion when you cut it now, as a grower, it's best not to take the gamble that it'll still be available in four or six weeks," says one trader. The combination of a somewhat tight supply and sluggish exports isn't doing the grower's price any good.

Quality problems in a broader sense are generally not beneficial for pricing. The inferior onions often get in the way of the good ones. The temptation to snag a lower-quality batch at a favorable price and process it and/or blend it with good onions is often strong for processors, with all the ensuing consequences. Due to the problems that crop up here and there with sprouting, wilting, fusarium, bacteria—you name it—it's logical that (especially growers) reason that the still-reasonable supply of onions hanging over the market, when we offset the CBS estimate and export figures, is actually much smaller. Whether this has the desired effect of a higher onion price is another matter.

Quality 
There are different schools of thought among sorters and exporters about the future of the onion market. Some say we are far too expensive compared to other suppliers within Europe. They believe the only way to stimulate demand is to significantly lower prices in the Netherlands. Other exporters and processors are less certain. Lower prices won't generate more demand. They believe the sector would benefit much more from market stabilization so that customers no longer wait until the last minute, hoping to buy some in the meantime. "We hope Austria and Germany run out soon and the Eastern Bloc will come knocking on our door," says one sorter. If you're not the cheapest, you have to make sure you stand out in terms of quality, according to some insiders. And while there are quality issues, there are certainly plenty of beautiful onions available that are flawless. 

All the theories about where things are going and what's best for the onion sector are certainly interesting, but in practice, bale prices remain under pressure. With exports slowing, there's a fierce battle among sorters over available orders. "Those operating at minimal capacity or completely closed down might be the ones with the best chance of success," says an insider. 

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