The supply in the onion market continues to significantly outstrip the demand. As a result, the prices of the Spanish productions have been plummeting since the start of the harvests this spring.
At the moment, the average prices at origin amount to around 0.10 euros per kilo, while production costs don't fall below 0.25 euros per kilo.
According to the Onion Producers Association of Castile-La Mancha, Procecam, there is still some European production from the previous campaign left to be marketed, as the volumes then were higher than expected.
This production has overlapped, not only with the usual imports from the southern hemisphere, but also with the new early Spanish onion harvests, whose acreage has been expanded by about 25%. We are talking mostly about free plantations, outside of programs, which are the ones most affected by the price collapse.
Given that the demand couldn't absorb this excess supply, many producers have been forced to give up and destroy some of their crops. "As soon as last year's onion surplus is used up and the demand from the industry increases, the market should recover its stability," says Luis Fernando Rubio, director of Procecam.
For more information:
Luis Fernando Rubio
PROCECAM
Calle San Clemente, 50
02600 Villarrobledo. Albacete. España.
[email protected]
www.procecam.es