This year's onion season's start is unlike others in the Netherlands. "Last year, you got a box of pastries with every shipment of onions; now you get a kick up the backside, so to speak," laughs Arie van Baalen of River Onions.
"We're not used to these prices, and it's been a true rollercoaster ride since New Year's, a trend that has only continued with the new crop. Quite a few onions also have a bit of a problem. Sowing was done very late, and the plots got lots of water, resulting in bacterial pressure. Those quality problems put pressure on the market."
"Wheat and potato prices are also moderate, so agricultural prices are generally under pressure. This year, we must, thus, be patient about making money. That takes some getting used to; in past years, we could do that right after harvesting. I think we can be happy if the market stabilizes. Growers are afraid of being rejected, and buyers fear getting bad onions. That requires some genuine trust. But I'm optimistic. At least prices are now at a level where exports should be able to take off well," says Arie.
"Demand is currently broad, with regular destinations taking plenty of onions. The United Kingdom is always a welcome buyer. Africa, where we're not active, was slightly lacking at the beginning of the season, but there are signs that those exports are starting to pick up a bit. These low prices are also attracting places such as Central America, Malaysia, and Israel again. You must stay vigilant with those far destinations, though, because those onions spend four to five weeks in a container," Arie explains. "Red onions are far more expensive, with growers' prices around €0.20-€0.23. But I expect that to drop because many batches haven't grown sufficiently large."
"In other years, Poland took many industry onions from the get-go, immediately giving the market a bottom. The same could happen now; you'd just have to make price concessions." River Onions has put much effort into selling industry batches to Poland in recent years. "We found a partner in Jakub Fyda who does our sales in Poland. He speaks the language and knows the culture, which is a big advantage. We send field crop onions to Poland and bring peeled onions for big processors in Belgium and France, among others, back," Arie concludes.
Arie van Baalen
River Onions
Verdrietweg 1
5306 HB Brakel
Mob: 06-53469881
[email protected]
www.river-onions.com