The onion market is currently experiencing an imbalance between growers and buyers, notes Commissioner Jaap Simonse of Simonions. "Growers with good quality onions are showing confidence in the season, which has led to a price increase. But whether that increase is truly driven by buyer demand, I have my doubts—there's still grumbling on that side that the market remains unbalanced."
"It's not that onions aren't becoming available. New batches continue to surface, but especially those where you have to question whether they'll hold up until April or May. Now that the market has risen by a few cents, growers with lower-quality, less storable onions no longer want to wait and see—last year that didn't end well either. But when it comes to the better-quality product, you really have to go after it," observes the commissioner.
"Compared to last week, not much has changed. The movement is mainly coming from the growers, who are currently in the driver's seat. This is also because a huge volume of onions with issues were cleared from the market between November and February- especially in January and February. At one point, even Poland was overwhelmed. But that was part of the process, as those onions no longer need to go into exports. That gives many growers hope that the market may still pick up towards the end of the season."
"Personally, I have limited insight into the volumes stored elsewhere in Europe. However, quality has been a concern across the board, with significant pressure from bacterial infections and mildew. That applies to Belgium, France, Germany, Poland, and even further into Eastern Europe. Finding retail-quality onions is quite a challenge. Size also plays a role. For example, if you have to pay 18–20 for large white onions, you can still recover that cost thanks to the size—especially if there are supers in the mix—but the price for medium sizes hasn't increased fast enough."
Simonse's work area primarily covers the Polder, Groningen, and Friesland, as well as the transitional region between sand and clay soils in Groningen and Drenthe. "In recent years, I've grown along with the expansion of the area," says Jaap. He doesn't see his commission work slowing down. "There will always be a shortage of people who can sell the right product at the right price," he says.
"The important thing is to simply do your job well—then your name won't come up even if there's some complaining. If my buyers ask for good onions, they need to be able to count on that. And if something does go wrong, you need to make it right."
"At the start of the season, some growers had to sell their onions below cost, and for some, it was disappointing both in terms of quality and finances. Now again, many traders aren't making their margins. Hopefully, there will be a strong finish to the season where both the grower and processor can be satisfied—and long-term storage will finally be rewarded again. But these are onions—anything can still happen."
For more information:
Jaap Simonse
Simonions
Tel: +31 06-23638689
info@simonions.nl
www.simonions.nl