In recent weeks, the price of onions has plummeted in a straight line. "This price drop was partly unnecessary, but after a worthless period, it ultimately led to a more stable market and more opportunities. Market stabilization is now also appropriate; reducing the price further won't bring any additional trade. Currently, we can supply every requesting country and offer the right price," says Lindert Moerdijk of MSP Onions.
"It's remarkable to see so many negative stories about the market published lately. When supply and demand do their job, balance will naturally occur, and we should focus on the opportunities in the coming period instead of dwelling on past negatives," says the exporter. "The quality differences are enormous and hence very confusing for end customers. They might see significant price differences and think both are good onions. Every processor will confirm that practically every batch has its own story, making it impossible to link a bale price to a certain size. Everything depends on the quality."
"On the farm, you also see these price differences, and especially the drop in industrial price makes that difference even more extreme. If exporters claim that cheap onions are also of good quality, it can be difficult for the end customer overseas to make a choice. Closer to home in Europe, the truth comes out within two days. Really good quality is scarce in Europe. This gives us many opportunities because there is a demand."
"Thanks to our optical sorter, our quality remains consistently high, and thus there hasn't been a quiet week this season. We've also sorted on Saturdays to maintain sufficient packing stock. This is also partly due to the higher rejection rates this season, leaving us with a less net product, which we then try to compensate for," concludes Lindert. "All in all, it's been a very special season and fortunately shows again that the onion market is unpredictable. Where speculation was rewarded last year, it has cost a lot of money this year. And so it goes with onions; they can go any direction, and that's precisely the charm of this sector."
For more information:
Lindert Moerdijk
MSP Onions
Hertenweg 32a
4455 TL Nieuwdorp
[email protected]
www.msp-onions.com