"Onions are moving in the export market, but the long-term outlook is uncertain. A few forward purchases are scheduled for December, but no one is taking large positions now. That says a lot about the confidence in the market right now," observes Leon van Meir of the Steenbergen-based sorting company that bears his name. "Over the past two years, many companies took a hit from high onion prices, so they're now being extremely cautious with their money."
"At the moment, a decent number of onions are being shipped out," Leon continues. "The advantage of low prices is that we can send onions anywhere in the world with little competition. But we must reduce our stock because there's a huge supply of onions, including some of lower quality. Predicting the market's direction is difficult—I don't have a crystal ball—but I'm concerned about the coming spring. Europe has far more onions than in previous years, so we'll rely on distant markets. If Senegal doesn't buy from us, that could be a problem."
"With cheap onions, we have access to markets worldwide," he adds. "We sometimes complain about quality, but our long-day onions remain popular globally. In expensive years, onions came from all over, but the quality of, say, Chinese onions doesn't compare to ours, which are in high demand at a satisfying price. At this price level, we can move a lot." Currently, the price for 50-70 grade bags is around 20 cents. "The price of medium-sized onions has risen a cent. Large onions are a bit pricier, but there aren't many large onions this year."
"Poland is also loading up right now. In addition, many Belgian and German onions are being imported, adding to our weekly export figures. But those stock figures only count at the end of the season. For our part, we're taking a few positions. That's an advantage compared to the big players who have a large staff, high fixed costs and need to keep operations running. If farmers close the gates, they're left with nothing. I'm glad not to be in that position. If we have a lower-volume week, I don't get anxious."
For more information:
Van Meir Onions & Potatoes
Boonhil 8
4651 VW Steenbergen
Tel: 0167 - 54 22 20
[email protected]
www.vanmeir.nl