Spanish onion acreage is expected to increase significantly for the next season

The cultivated area is expected to increase significantly for the 2024/2025 season, as seed companies have already reported notable growth in sales, particularly in the earliest areas in southern Spain, according to the Association of Onion Producers from Castilla-La Mancha, Procecam.

“The surface area has already increased by 16% for the 2023/2024 season and it's growing again this year, in which we hope to recover the 30% drop from two seasons ago,” stated Luis Fernando Rubio, Procecam's director. “This is due to the exceptionally good commercial results of the last two seasons. Onion prices are attracting a greater number of non-specialist producers. The area will grow in all production areas, but it'll be more considerable in Andalusia and Murcia. However, we must bear in mind that the demand for onions is very inelastic, and if the supply increases a lot, prices will no longer be so profitable," he warned.

Spain exports nearly 30% of its onion production and this year's onion export campaign is progressing slowly. "We are facing a period of slow operations, which has been aggravated by roadblocks in France and Belgium," stated Luis Fernando Rubio.

Spanish onion stocks are lower than the sector initially estimated, causing exports to fall by almost 6% over the past three months.

"Stocks are lower than expected due to the drop in yields caused by the excess heat during the formation and harvest stage of the campaign. There is uncertainty in the sector about how much garlic will be available and whether it will be enough before the start of the new crop for the 2024/2025 season, as imports from the southern hemisphere - mainly from New Zealand and Australia - are likely to arrive with 15 to 20 days of delay due to the conflict with the Houthis in the Red Sea. Diverting ships via southern Africa will not only delay arrivals, it will also make the product significantly more expensive,” stated Luis Fernando Rubio.

“In any case, the current drop in demand makes it possible to properly balance the available supply,” he added. "Prices are not as exorbitant as last season but they remain high for this time of the season, standing at around 68-70 cents per kilo for 25-kg bags."

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