"Exports are quite well spread but the high prices make for slightly more competition on the global market. That's from places like China and Egypt in destinations such as Malaysia. Egypt has onions in Africa, too. So, trade's not steaming ahead like it did last season," says Tim van Haandel of the Dutch company Mulder Onions.
"Usually, prices should fall a little more because it's not so busy. Yellow onions from packing facilities are priced at around €0.46 for mediums and about €0.50 for supers. That gap should widen a bit more because hardly any supers are available on the market. In mid-September, red onions reached between €0.80 and €0.88, depending on whether they were large or super. Medium fetched roughly €0.70. That segment's mood will keep being good; there's already demand for red onions from Western European countries."
Tim admits it is hard to say how the yellow onion market will continue developing. "The Netherlands is transitioning from seed onions to onion sets, but it seems seed onions' quality is still generally disappointing. That's a shame because before the season, we'd expected similar export volumes as last year. But if there are more rejections, the kilos could be even lower. All in all, quality will play a crucial role this year. If the onions don't last as long, our customers will be more likely to switch to imported onions," he says.
"The advantage of last season's sky-high prices is that destinations like the United Kingdom that buy onions year-round got used to those prices. But countries in Africa, most of which dropped out in December, now have to enter at a higher level than they were used to." Exports to Central America countries are also disappointing, Tim says, adding, "I'd expected orders from places like Honduras and Nicaragua, which normally already take more onions. There are no new destinations either."
Currently, the sharp decrease in sea freight to, say, Asia is a boon for Dutch exporters. "Those are 30% down on last year's prices. It's almost cheaper to ship a container to Malaysia than to drive to France by road. That, in turn, boosts our competitive edge," Tim concludes.
Mulder Onions
Hagenroderstraat 32
6464 CP Kerkrade
+31(0)45 5678700
[email protected]
www.mulder-onions.com