Onion sales continue, but the large supply and weak demand are putting pressure on prices. Fine batches, in particular, are causing friction in the trade. Read more about price pressure and sales in the onion market.
Slowly but surely, the realization is beginning to sink in that sales of red onions are insufficient to clear stocks. Moreover, a large proportion of the batches are no longer suitable for sale in this difficult market, where supply far exceeds demand. According to buyers, truly good red onions are hard to find and difficult to purchase. It is expected that an alternative destination will have to be found for large quantities of red onions.
However, the mood in the market for yellow onions is not good either. While substantial volumes are still being sold, prices do not reflect this. The problematic sales of the smaller onions are severely hampering the market. There are more than enough customers for large onions, but to serve them, sorters are left with the smaller sizes.
It is therefore a matter of making do with onions for which little is paid. Buyers therefore try to secure batches for which payment is only made for the size 50 millimeters or even 60 millimeters and up. Anything that can still be achieved for the finer onions is a bonus, buyers believe.
According to some sorters, the moment when finer onions go into animal feed or the digester is drawing ever closer. They see the problems escalating further. Nevertheless, there are also sorters who assume that there will soon be more opportunities again for the sale of finer onions within Europe.
Contract onions purchased at too high a price
Onions are currently still being loaded that were contractually agreed upon earlier this season for 18 to 20 cents per kilo, or sometimes even slightly more. With the low prices for sorted produce, this poses a significant problem for sorters. It is difficult to sell at a time when plenty of field crop batches are being offered for 10 to 14 cents per kilo.
A bright spot is that a considerable amount of onions are finding a destination every week. Exports are slightly lower this week due to Easter Monday, but exporters are still selling around 20.000 tonnes per week across the border. That is a serious volume for this period. With these quantities, stocks are noticeably declining.