Onion exports continue to perform well in terms of volume, yet prices are under pressure. European sales are lagging behind, while quality and margins are under strain. Read more about the development of onion exports and price pressure.
In itself, exports have been performing remarkably well since Senegal pulled out in January. Where buyers sometimes drop out, other destinations are stepping up with new requests for Dutch onions.
Flooding in Spain led to increased demand for Dutch onions. Subsequently, Morocco suddenly needed onions due to a shortage on the local market. In recent weeks, that demand dropped again, but at that very moment, Brazil turned to the Dutch onion market.
High volume, low prices
After a strong start in the first half of the season, exports are maintaining their pace in the second half. Weekly exports are above 20.000 tonnes, and as long as this continues, volume will remain stable. However, prices, quality, and margins leave something to be desired.
Total exports up to Easter have risen to 1,15 million tonnes. This puts the export volume for this season clearly higher than in previous seasons. The season runs until the end of June, and with this interim figure, exports are on track to break the record from 2021/22.
At the same time, sellers are dealing with a dip in export demand this week. While more demand from Europe was expected in April, this is barely reflected. Although Spain ordered substantial volumes, Eastern Europe is hardly showing up.
European market quite empty
Nevertheless, onion sellers believe that the European onion market has become quite depleted. In addition, mediocre quality is a factor everywhere. While some shipments were ordered here and there last week, additional requests have so far failed to materialize. Buyers may be waiting to see how Dutch quality develops first. The fact that transport is expensive and difficult to organize may also play a role.
The DCA Onion Bale Price shows minimal differences this week compared to last week. Where the quotation deviates, it concerns rounding differences. Export demand is weaker than last week, but prices remain stable at this low level.
Read here the explanation from DCA Market Intelligence on the new quotations.