Four weeks after the resumption of Egyptian onion exports, and after a 6-month ban, the campaign is going according to plan, according to Zayed Lasheen of AfriGoodGrows.
Zayed says: "On a national scale, this year's volumes are much higher than last year's, at nearly 1.8 million tons, 30% of which is for export. Onion volumes are cyclical and the dance of shortage and abundance occurs every two years, although there was a severe shortage last year."
Production conditions were very good this season, resulting in good sizes, shapes, and coloring, adds Zayed. "We're seeing a good distribution of sizes, with 60-80 being the most available at 50%, and also the most in demand. The 80-100s make up 30% of the harvest, and the smaller, less sought-after 40-60s make up only 20%. The warmer weather is also accelerating onion dryness."
The first month of the campaign is progressing well commercially, according to Zayed. "Demand for red onion varieties is high and comes mainly from Western Europe, notably the Netherlands, Germany, Italy, France, and the UK - especially England. Demand for yellow onions, which comes from Eastern Europe such as Poland and Croatia, is slower due to the presence of Dutch dry onions at a lower price."
The grower continues: "We're expecting a very competitive season, but we're lucky at the moment because there isn't much competition for fresh onions. India is focusing on markets like gulf countries, while Egypt supplies the European market. this will remain the case for at least 3 months before the start of the Netherland's campaign."
Despite strong demand, prices are lower than last season, a completely normal situation, according to Zayed. "Last year, the global production shortfall was too severe, including falling volumes from the Netherlands. Prices reached 700 euros per tonne (C&F), which is exceptional. Current prices are around 600 euros/tonne, and better reflect the market."
With the abundance of Egyptian supply, competition will be mainly at the national level between producers. Zayed concludes, "The last word will be quality. Customers need to pay attention to aspects other than price: traceability to the farm of origin and its inspection, variety of origin, color, shape, etc. At AfriGoodGrows, we pay attention to these details. We use an Italian variety of red onion, which produces dark purple-red, circle-shaped tubers. Our farms are located in the Delta region, characterized by onions with more layers, which guarantees a longer shelf life. In terms of volume, we have increased our capacity by investing in a new grading machine and packaging facility."
For more information:
Zayed Lasheen
AfriGroodGrow
Tel: +420 739 019 060
Email: z.lasheen@afrigoodgrow.com
www.afrigoodgrow.com