With growers holding firm on their onions and exports remaining quiet, the onion trade is anxiously awaiting the weeks ahead. "Currently, the price at the farm is sometimes even higher than the price in the bale. That's obviously not sustainable. The question is: who will be proven right?" says Jan Franje of Franje Onions.
William Nannes and Jan Franje
"There are still some shipments going to Africa, but we're now entering the period when Europe needs to take over. You hear talk that countries like Austria are running out of onions, but I don't think that's really evident yet in terms of demand. European demand still needs to get going. Growers are betting on that, but the question is whether the market is stagnating too much right now," Jan continues.
According to the packer, onion prices vary significantly depending on quality and destination. "It's quite a dilemma whether or not to buy onions at the moment. In any case, the base price will have to increase. The quality varies greatly, and there are problems with sprouting in general." Trading in red onions is also quiet, according to Franje, and with organic onions, the packer has stopped altogether this season, except for some contract work. "That market has changed so much compared to ten years ago — it's incredible. Right now, organic onions are very expensive, but there's very little actual trade happening."
Jan welcomes the investment in Flikweert Vison's Quality Graders. "This makes the work much easier. This week we had a batch with 14% tare, and with that, you can run the same volume as before with the same number of people. We've had the machines running for a year and a half now. Today, the mechanics happen to be here to assess what maintenance planning is needed for the coming years."
"For us, as a desk exporter trading exclusively outside Europe, exports are very quiet at the moment. Fortunately, we also carry many other products, but if you rely on Africa as an onion grader, things are very slow," observes buyer William Nannes of J.P. Beemsterboer Food Traders.
"At the same time, optimism among onion growers is high. If you look at the CBS figures, there are enough onions across Europe, but the question is how many lots will still be good enough for export by May and June. Onion vitality is noticeably lower," William continues. According to Nannes, the optimism seen among onion growers has now faded among potato growers. "Potato prices are falling quite a bit now, and that drop is being felt by farmers. That will need some time to stabilize, but it could eventually lead to a bit more movement in trade."
For more information:
Jan Franje
Franje Onions
Gawege 10
4414 NB Waarde
+31 (0)113 501658
info@franjeonions.nl
www.franjeonions.nl
William Nannes
J.P. Beemsterboer Food Traders
+31 226396408
william@jpb.nl
www.beemsterboer.nl