The onion industry is celebrating a significant stride towards penetrating the Chinese market with New Zealand-grown onions. Currently, 90% of New Zealand's onion crop is exported, contributing $182 million to the nation’s economy from the export of 151,000 metric tonnes, primarily to European Union nations and Indonesia during the 2022/2023 season. However, the lucrative Chinese market remains untapped by New Zealand exporters.
A delegation from New Zealand recently returned from Shanghai after signing a memorandum of understanding with a Chinese import-export association to facilitate bilateral onion trade. James Kuperus, the CEO of industry body Onions New Zealand, expressed optimism about this development, stating that it offers New Zealand growers an additional export market.
“The potential is substantial. Our projections indicate that within five to ten years, we could be exporting onions worth $50-60 million to China once we secure market access. We are enthusiastic about the future, although there are still hurdles to overcome," Kuperus said.
He also acknowledged the complexities involved in establishing biosecurity protocols to manage pest and disease risks in both markets. He emphasized the necessity for strong biosecurity protocols and stated that the process of negotiation between the two governments was ongoing.
Kuperus was hopeful that New Zealand onions would penetrate the Chinese market within the next 2 to 5 years, but he allowed for the possibility of a longer timeline. He cited the global pandemic as a factor that might slow down the process but remained optimistic about the future.
He also mentioned that New Zealand only imported small quantities of Chinese onions during its off-season, which constituted a minuscule fraction of its domestic market of about 50,000 tonnes.
As of the 2022-2023 season, there were approximately 75 onion growers in New Zealand, cultivating about 500 hectares. Vegetable exports, primarily onions and squash, usually peak in March.
Source: rnz