The onion market is calm at present. "Most packers are fairly quiet, and demand is dwindling. Only one ship, at most, will still leave for Senegal, and it's a big question of who's going to take over next," says Rinus Wisse of the Dutch company Wiscomex.
"In other years, exporters often eyed each other during Fruit Logistica, wondering when Europe would take over. It usually took a few more weeks. With current prices- from €0.40 for the smallest sizes to €0.45 for the mediums - exports likely won't increase quickly. You're left wondering how long growers will keep trusting the market. Prices are indeed under some pressure, but for many destinations, the onions are too expensive."
"The recent price increase wasn't based on increasing demand but on a miscalculated power play. Everyone got caught up in the rising market surge. That's now boomeranging, but proportionally, prices are simply too high. Last year, the market kept rising, but that was speculation-driven. That's not the case now. Excellent quality onions will undoubtedly find their way, but I don't foresee truckloads of mass-quality heading to Eastern Europe anytime soon. Those countries still have enough onions, either locally or closer by," Rinus explains.
"The backlog of more than 105,000 tons up to week 48 is also significant. Another point is that with increased optical sorting, inferior batches also find a responsible way. So there are more onions than last year, and despite this year's lower quality, even subpar batches are sold. These high prices allow for room to be slightly under somewhere. In short, I think there's more product available than we think. We'll see how the market reacts."
"On average, these high prices mean we - growers, packers, and exporters - have achieved excellent results. But those certainly haven't benefitted the Netherlands' position as the undisputed place-to-be for export onions," concludes Rinus.
Wiscomex is an exhibitor at Fruit Logistica, Hall 3.2 - D-32
For more information:
Rinus Wisse
Wiscomex
23b Schoorkenszandweg
4431 NC, ’s-Gravenpolder, NL
[email protected]
www.wiscomex.com