In early September, Mike de Koster of WDK Onions was hard at work bringing in his crop. "Rain is expected again next week, so we have to get it done now," he said. "There's somewhat more demand for onions, but prices and margins aren't great."
Mike represents the third generation of this Dutch family business. "Hopefully, that situation will change slightly. It's always hard to sell in a declining market. That's what's happening again this year. However, it seems, with the transition from onion sets to seed onions, the market is stabilizing somewhat."
"How that market will develop further largely depends on the seed onion yields. That differs greatly. Some plots are in excellent shape, others less so," says Mike. WDK Onions sources onions mainly from the south of the Netherlands. "In Zeeland, onion cultivation has decreased considerably. Some growers have yields of 30-35 tons."
"If you then get €0.10/kg, your cultivation costs are half the cost price. In areas like Groningen and Drenthe, the onion acreage is increasing significantly. We do only minimal business there and try to buy the onions as close as possible. But, ultimately, quality is the leading factor. So we do go to South Limburg, where we have a few good, regular growers," Mike explains.
"It's hard to predict this season. I hope the lower prices mean we'll export a lot and thus see a price rise. Adding a cent every week would be nice; then, you can get into a flow. But if that will happen remains to be seen. Often, in years when the onions start low, prices can end high. But, in the end, how many good onions remain will be decisive, and that depends on several factors, such as whether the MH treatment has succeeded equally well everywhere."
"The last two years' high prices allowed other countries to compete with us. Places like China and Egypt have seen quite a growth in onion cultivation. Chinese onions, as a result, were plentiful on the African market in the last few years; that didn't used to be the case. The current low prices will make it much harder for the Chinese. The high transport rates from Asia to Europe now also work in our favor," Mike concludes.
Mike de Koster
WDK Onions BV
Langeweegje 39
4434 NC Kwadendamme (NL)
Tel: +31 (0)113 644270
M: +31 (0)6 48380272
[email protected]
www.wdk-onions.nl