Dutch onion exports have seen a significant uptick in recent weeks. "This has been the case for some time. You need to secure your supply early to ensure everything is covered," says Rinus Wisse of Wiscomex. "That said, we're no longer seeing the booming export weeks of the past, with volumes exceeding 40,000 tons per week. The question is whether this is due to a lack of labor or if margins are simply too low to sustain those high volumes."
"This has turned into a true packer's market. They're firmly in control and are now pushing for higher prices. This week, prices for medium and large onions are ranging between 23 and 25 cents," Rinus notes. "From the packer's perspective, this increase is logical given the current rush. But the real question is how sustainable this will be in the long term. Once Senegal's onion market stabilizes, things will shift. That could happen in one to three weeks, but it's inevitable."
November storm
"There's a difference between weather and climate," Rinus explains, using a metaphor. "You can have a strong November storm, but it doesn't change the overall climate. Similarly, despite the current demand, we have plenty of onions this year. I'm estimating volumes similar to the 2021/22 season, where we ended up with 1.3 million tons. With additional supply from Germany, Belgium, and France, we should be able to move that volume."
"Most packers don't have large stocks at the moment and are even running short. However, I hope growers don't let the current positive market sentiment mislead them into thinking demand will stay high indefinitely. If we need to export 60% of our volume before Christmas, we'd have to sell an average of 42,000 tons per week from week 44 onwards, and we're not hitting that. Even if we manage 33,000 tons, we'll be 75,000 tons behind by January 1. That's a significant backlog for the second half of the season. While demand is reasonably broad and rising markets often bring in extra orders, growers shouldn't forget to keep selling."
"This year's crop isn't outstanding in terms of quality," Rinus admits. "But when you have a high yield, it's not unusual to see more lower-quality onions. If all onions were top quality, we'd be facing a pricing problem. As for red onions, the market is more stable. The supply of red onions in the Netherlands is relatively strong this year."
For more information:
Rinus Wisse
Wiscomex
Schoorkenszandweg 23b
4431 NC 's-Gravenpolder
[email protected]
www.wiscomex.com