The onion market differs widely in countries around the world, ranging from very high prices and short supply to stable supply and prices. North America is seeing stronger pricing as onion sourcing regions shift. That's leaving the supply of onions good on all sizes and colours given that acreage and yields in the onion growing areas are fairly typical. Since last October, the price of onions in China has remained unusually high, marking a level of pricing not seen in the last two decades. Adverse weather conditions have affected the quality and shelf life of onions as high prices deter consumers from buying. The agriculture department in the Philippines approved the import of 16,000 MT of yellow onions. In South Africa the average onion price remained on a downward trend. This follows on from last season's declining onion prices. On the other hand Egyptian growers responded to last year's higher prices, shortages and export ban by planting more, leading to 1 million tons more than last season. Despite some exports the over production has led to prices plummeting.
In Italy the onion situation is complicated with the weather causing 'patchy' damage. In some growing areas there's good quality and excellent yields, and in other areas very low yields and storage problems. Lower prices are not helping either. Germany struggles with disease pressure and quality problems. Wholesale onion prices are well below the previous year's level, regardless of whether they are domestic produce or imported goods. In Austria, where the harvest is currently in full swing, the export demand is rising from South-East and Eastern Europe. The opposite is true for the Netherlands where sentiment is lacking in the onion market. Plant onions are already being sold for as low as ten cents, and there is no positive sentiment to drive prices up. Israel's main onion harvest started, supplemented by imports from the Netherlands. Meanwhile, in France they have quality problems with a high disease burden. This is caused by bad weather, humidity and recent thermal shocks. Prices have fallen enormously over the last 2-3 months. Spain is coming out of a "perfect storm" with dramatically low onion prices over the past few months.
North America: Stronger pricing on North American onions as sourcing regions shift
The transition regions in onion production is underway. California and New Mexico have finished up and storage crop onions in Washington, Idaho, Eastern Oregon, Colorado, Michigan, New York, and Canada are running.
That's leaving the supply of onions good on all sizes and colours given that acreage and yields in the onion growing areas are fairly typical. In the past few weeks, white onions have been tighter on supply in the Northwest though that is shifting now. Meanwhile Super and Colossal yellow onions are a little tighter, particularly in Washington.
This season, Washington began harvesting a little bit later by a few weeks–part of the reason why white onions, which come from Washington, were tight.
As for onion demand, it is steady, even with the late August slower movement, which is common in many commodities. That's expected to strengthen moving into fall. With good supply across the country, demand is anticipated to be spread out amongst the regions that can supply the most competitive delivered prices along with the highest quality. Meanwhile, pricing is steady.
China: Price remains at high level
Since last October, the price of onions in China has remained unusually high, marking a level of pricing not seen in the last two decades. Currently, there is no significant increase in purchase volumes, leaving the market in a state of uncertainty.
Gansu, a leading onion-producing region in China, has limited stock in the market following the harvest season. The current supply mainly comes from Yunnan, Sichuan, and other areas. Adverse weather conditions have affected the quality and shelf life of Yunnan's new-season onions, not matching previous standards.
Despite this, the high market prices have led to a two to threefold price increase compared to past years, deterring buyers from increasing their purchases.
Philippines: Import of 16,000 MT of yellow onions approved
The Department of Agriculture (DA) in the Philippines has announced the approval for the importation of 16,000 metric tons (MT) of yellow onions by the end of the year, due to depleting stocks. DA Secretary Francisco Tiu Laurel Jr. disclosed the decision following a memorandum from the Bureau of Plant Industry (BPI), which indicated that the current supply of 3,296.50 MT of yellow onions was anticipated to last only until August 25. He further clarified, "I approved the import of white or yellow onions because the stocks are already depleted. But we still have a lot of red onions."
South Africa: Average onion price remained on a downward trend
The average onion price remained on a downward trend to R56.50 (2.85 euros) per 10kg and R40 (2 euros) for 7kg bags of onions.
There is a large difference between brown and white onions - both trading below the R55 level - and red onions, selling for an average opf R119 (6 euros) for a 10kg bag. Medium onions are the most expensive at R63 (3.2 euros) for 10kg bag, versus R55 for large and R40 (2 euros) for a 10kg bag of small onions.
A similar pricing trend as last year is expected by market analysts; in 2023 high May/June onion prices decreased for the rest of the year, and some believe "the average [brown and white] onion price can move below the R50 (2.5 euro) mark next month and stay there until December". The black frost over much of Limpopo Province at the start of July also affected onions.
Egypt: Onion volumes increase by 1 million tons
The Egyptian onion season began in April after a three-month export ban. To recall, last season, onion stocks were insufficient in Egypt, increasing the price on the local market to unprecedented levels, which prompted the government to intervene and ban exports.
This season, acreage has risen considerably. One grower says, " With last season's prices, many growers have grown onions this year. Volumes are estimated to exceed 3 million tons, a million tons more than last season."
In addition to excess production, demand is not as strong as last season. One exporter says, "We had some demand at the start of the season, but it's almost non-existent now, and we've ended up with onions on our hands. "Another exporter says, "Europe is supplied by Spain and the Netherlands. We manage to export to West and Central Africa."
As a result, prices have plummeted compared with the previous season. According to one exporter, "Prices are down by half on the previous season, and we're exporting currently at around USD 300 EXW."
Italy: Onions situation is complicated
The situation for onions is complicated at the moment. A major operator in northern Italy says that the weather has caused patchy damage in the northern areas. There are areas with good quality production and excellent yields, and other areas with very low yields and storage problems. So it has not been a normal year. In general, prices at this early stage of the season are slightly lower for almost all varieties. This is due to the fact that 2023 was a year of very high prices and 2024 seems to be moving towards lower figures, also because there does not seem to be any particular drop in production in Europe. The Borettana variety is experiencing a significant drop in production, but prices are currently stable.
The drought in Sicily marked the production of the niche onion called 'Paglina di Castrofilippo', which, due to the excessive heat, was characterised by smaller than standard sizes. Nevertheless, good quantities of over 600 g per bulb were obtained, and in some cases even over 1 kg. Average prices for this onion were around 1.40 €/kg at origin.
More than 20 million of the 26 million households in Italy buy onions at least once a year, according to the permanent observatory of GfK Consumer Panel Services. In the year ending June 2024, the purchaser base of more than 78%, reached by onions, is a constantly growing value. Those who buy onions more than 8 times a year see a decrease in the quantity bought each time against a higher investment.
Germany: Struggles with disease pressure and quality problems
Traders and processors are particularly concerned about the seed onions, which are harvested and stored from September onwards. Although the acreage in northern Germany has been grown, farmers are struggling with disease pressure and quality problems. The weather conditions in the upcoming weeks up to the start of the main harvest will be decisive here. "Temperatures of around 25 degrees and sporadic rainfall would be ideal. If we are spared extremes, I don't think there will be any more problem batches like last year", says a processor. Meanwhile, wholesale onion prices are well below the previous year's level, regardless of whether they are domestic produce or imported goods from Spain, Italy, Austria or the Netherlands.
Austria: Export demand is rising
The Austrian onion market is largely unchanged compared to the previous week. The harvest is currently in full swing. Overall, yields remain weak and onions are mostly only medium to small sized. In addition they have quiet but steady domestic sales, export enquiries to South-East and Eastern Europe have recently increased. Producer prices will therefore remain unchanged for another week. For medium sized onions, cleaned and sorted in crates, prices were mostly EUR 20 to 23/100kg at the beginning of the week, depending on quality. Meanwhile, prices are significantly lower for small lots and higher for large lots.
Netherlands: Sentiment lacking in onion market
The onion market has started under very different circumstances compared to last year. Plant onions are already being sold for as low as ten cents, and there is no positive sentiment to drive prices up. "We expected not to have the same situation as last year, which was quite unique, but we didn't anticipate it to this extent," says a Dutch sorter. "The quantities are not too bad, but the export market isn't picking up. Some onions are being sold, but there's no real hustle. The sentiment just isn't there. Across Europe, there are enough sowing onions available, so it doesn't look like the sentiment will change soon. I do hope that a lower price will help us achieve more export."
Israel: Main harvest of onions started
A large importer in Israel notes that they are at the starting the main harvest of onions. "We are at the beginning of the main crop of onions and the price levels are higher than average. This is due to lower volumes available in the last crop and producers that prefer to put onions in storage for later in the season. At the moment we have started to load from Holland weekly volumes and will increase in the coming weeks," noted the importer.
France: Quality problems with high disease burden
There are quality problems in France due to diseases caused by bad weather, humidity and recent thermal shocks. This has been complicated for certain crops, which have developed mildew. As a result, there's a lot of heterogeneity in the crops, and size problems. There's a lot of small sizes and a lack of large sizes.
As for the market, consumption is rather dynamic, as prices have fallen enormously over the last 2-3 months. They are between 25 and 30 cents per kg, which is very low, especially when compared with prices at the beginning of the year, when they were around 0.50-0.60 euros per kilo. "Imports are now over, we are on all varieties of early yellow onions which will end in 2-3 weeks," a trader notes.
Spain: Coming out of "perfect storm" with dramatically low prices
The onion acreage in Spain grew significantly, mainly for brown Medio Grano varieties, due to its low water need, as at the planting period there was a severe drought in Andalusia and Castille La Mancha. Normally, this kind of onion fills the possible production gaps in the European markets during June and July. But this year, a significantly bigger Spanish supply of Medio Grano onions encountered big stocks of stored onions in the Netherlands, Germany and other European markets.
Furthermore, the harvest of yellow/brown late onions kicked off 15 days earlier with very good yields, pushing up the supply to even higher volumes and causing the "perfect storm" with dramatically low prices ( between 8-10 cents per kilo on the field) below the profitability. At mid-August, the most of the exceeding volumes of Medio Grano onions were gone and the yellow/brown onion prices tend to rise with good prospects for the coming months. There is a predominance of big sizes (mainly 1-2) and good quality due to the absence of storms or weather adversities. The prices at the moment for yellow onions trade from 15 to 20 cents per kilo on the field, which already are on the edge of profitability.
Next week's topic: Apples