This onion season's starting prices in the Netherlands are very different from recent years, but Wim Waterman of Waterman Onions expects a turnaround soon. "Prices dropped significantly recently, but that seems to be over now. Demand is increasing due to that lower price; we do get busy, and prices may rise slightly again," he says.
"It can't get much cheaper." Wim, however, points out the different lot prices. "The stock exchange listings don't always reflect that. That's currently at €0.08-€0.10, but some onions in the field are worth less. The exchange prices don't show that, though, because they end up in the industry or are stored in hopes of better times. Red onion prices are, however, nice and stable," he says.
"The Dutch growing season was challenging, and many lots manifest that. We're dealing with powdery mildew, batches that aren't maturing well, and bacterial and fungal pressure. It will be tricky to sort those all out. The market is investing in large sorting machines, but we reckon the best grading is still growers' initial selection at the grower. That's why we work as much as possible with buyers who don't sugarcoat the situation. What you see is what you get."
Given the growing season's challenges, like mildew and fungal and bacterial pressures, Wim stresses the importance of that quality selection at the grower. He points out the variability in yield and quality, which are not always region-specific, and climate change's market impact. Despite competition, Wim sees the rising demand for onions worldwide as an opportunity. Waterman Onions is preparing for future market demands by investing in new technology and more efficient methods, focusing on quality despite possible price increases.
Looking ahead, Waterman concludes: "We're on the verge of an interesting period for the onion market. By looking ahead and acting strategically, we're well-positioned to take advantage of the chances these market dynamics present. We've recently invested heavily in becoming self-sufficient in energy. We're also always looking at new investments and do so deliberately; after all, you can also run too fast. But we always follow the market closely and anticipate it, sometimes with small course corrections, sometimes at full throttle."
Wim Waterman
Waterman Onions
Hannie Schaftweg 12
8304 AR Emmeloord
+31 (0)527 617 496
[email protected]
www.waterman-onions.nl