Global Market Report: Onions

Traditionally, January is a quiet month for onion trading. Holland onion traders are now in the middle of the export season because Senegal has closed its import market to protect its production. This year, there has also been a significant increase in Spanish onions shipped to West Africa, with Holland onions often dominating. India’s economy is slowly recovering as the two regions begin to harvest new crops. In China, the market is calm due to the lunar new year.China Garlic Price is reasonable and of high quality. In the United States, inventories are slightly below average and there are some quality problems with storage. In February, Mexico, New Zealand and Egypt will also see new harvests of yellow onions. At present, the market supply of onion in South Africa has lasted for two to three weeks, mainly exported to other regions of Africa and Europe.

Holland: after a good first half of the season, the market is calm

After exporting more than 724000 tons of onions, the onion market is calmer now, which is actually an annual trend. In the first half of the year, from inventory to export, it increased by nearly 60%. Holland onions benefit mainly from the Indian market and its export destinations. More onions were also exported to West African countries, but on January 15th Senegal closed its import border to protect its crops. As a result, demand is falling rapidly and prices are under pressure. Last December, the Garlic Price was still 17 euro cents per kilogram, and the price of better onions was 21 euro cents. In January, for normal yellow onions, the price dropped to 15 euro cents per kilogram, with a better price of 18 euro cents. Traders hope demand will pick up again in the next few weeks as onions are exported to Eastern Europe, South America and the Far East.

Belgium: price uncertainty

After a period of more exports, Belgium’s onion market has returned to calm. A large number of onions are exported to Africa, but the trade activities of Belgian onion traders are quite calm because several countries have banned the import. This puts a little pressure on prices. It is uncertain whether prices will rise in the coming weeks.

Germany: satisfactory development in the second half of the production season

There are two completely different seasons in Germany. At first, harvests across Europe were very limited and there were shortages, but this season’s harvest has progressed satisfactorily. Onion exports are progressing well, and onions are available in almost all major producing countries. Germany has benefited a lot from a successful season in the Netherlands.

In this industry, there are strict directives on plant protection, but there are also climate change and increasing personnel shortages. As a remedy, the industry is currently investing heavily in new areas, irrigation and storage capacity.

There are some interesting trends in the onion Market in Germany: first, the demand for red onions is growing, and currently they are mainly imported from the Holland. the discount store, recently decided to offer only organic red onions. The main overseas supplier remains New Zealand.

France: increased demand for French onions in the domestic market

This year’s onions are of good quality and output. Some traders hope to provide French onions to customers all year, and the domestic market is also growing demand for French onions. The price is about 15 euros per 100 kg. However, prices are volatile as inventories in other European countries may still have an impact on the market.

Austria: looking for large yellow and red onions

In Austria, the onion market is stable. For standard yellow onions, the price is between 23 and 28 euros (100 kg). For the onion with smaller specifications, the price is obviously lower. Large yellow and red onions are rare and popular in Austria.

Spain: unusual onion demand between December and January

The demand for onions is falling after the exceptionally good market in December and January. Spanish onion production is higher than last season. The price between summer and autumn is quite low, especially for large scale onions, the demand from the market is less. Around Christmas, demand changed in the Netherlands, France, Italy and Eastern Europe. More onions also flow to West Africa, a market usually dominated by the Netherlands. There is also a significant price difference between the standard onion and high quality onion in this season.

However, this week, demand has fallen significantly. “It’s always a trend at this time of year,” said a representative of the industry. West Africa has stopped importing because their own cultivation is about to begin. It’s not clear what happens to stored onions. It depends a lot on quality, but given the weather, it shouldn’t be a problem. ”

Italy: reduced inventory leads to increased demand

In Italy, onion sales are progressing well, prices are satisfactory and inventories are reduced. A company specializing in onion processing and sales in northern Italy confirmed the market situation. By the end of January 2020, the price of yellow onion is between 30 and 37 euro cents per kilogram, the price of white onion is 50 euro cents per kilogram, and the price of red onion is 45 euro cents. But inventories are falling, and it’s not clear what the market will do in the future. That’s why onions are very popular now. In the wholesale market, we found that the prices of Italian and Dutch onions are between 43 and 95 euro cents per kilogram, depending on the type, size, packaging and origin of onions. The price of Italian pink onion can even reach the level of 1.40 euros per kilogram, while that of French onion can reach 1.70 euros per kilogram.

Egypt: India’s market situation leads to increased exports

The Egyptian Red Onion season is coming to an end, with yellow onions beginning in February. Egypt has benefited a lot from the situation in India, where a businessman said it has been able to export 75% of its onions to the market. Egyptians are also preparing to export onions to European markets.

India: slow market recovery

The situation in India seems to be calming down,due to new gains are coming to the two Indian regions. As a result, imports of red onions, mainly, are declining, and according to new year’s preliminary estimates, onion cultivation has increased by 7% this year.

China: new year leads to low price operation

Onion prices have risen slightly since October, but have been very stable since. This season’s exports are different from last year, when many onions were exported to Europe. This is not the case this quarter, as Dutch onion stocks are plentiful and Chinese companies find it difficult to compete with them. Holland onions are a little cheaper than Chinese ones. However, Chinese onion exports to the Middle East and other Asian countries are progressing well.

At present, the market is still calm, because it is the end of the Chinese New Year. During the new year, most companies are closed. In addition, the market is quiet, and because of the current coronavirus, there is not much trade going on.

USA:reduced onion supply

Onion supply in the northwest is now slightly below the average for the same period last year. Due to the cold weather and rainfall, the harvest this year is less. In summer, the weather stays cool, which leads to quality problems with onions. This can be seen especially in yellow onions, which are less problematic for early harvest white onions. The amount of onions in stock is therefore reduced.

USA demand is still behind January’s normal level, and prices in the market have changed, with prices in Washington and Idaho ranging from $7 to $10, depending on the size of the onion. White onions cost between $12 and $14 in Washington, and $14 and $16 in Idaho; red onions cost between $5 and $6 in Washington, and Idaho is slightly higher. In March, the first harvest of Texas onions lasted until mid May. Due to the warm weather, people’s expectations are very good, and the production season can start ahead of time.

South Africa: koue bokkeveld’s harvest is supplied for exports to Africa and Europe

The onion season in koue bokkeveld, South Africa’s Western Cape Province, is now two to three weeks. Exports to the rest of Africa remain stable, while exports to Europe will be lower than last year’s abnormally high levels. The rain two weeks ago brought difficulties to grape growers in another area (the hex River Valley), but had no effect on the onion harvest of koue bokkeveld. This is the only area where yellow onions can be grown and exported. Domestic prices are 8% lower than last week and are currently 0.22 EUR / kg (r 4.23). Analysts believe that the market demand is strong, prices will remain at this level, or even rise again.

Mexico: new harvest in February

In February, Mexican onions will be on the market. Although most onions are sold in the domestic market, some are exported to the United States. Last year, the onion Market in Mexico was better than that in the United States, which means that the onion originally intended for export was digested by the domestic market.

Australia: onion export growth to Indonesia and Europe

Australian onion prices rose (3.8%) and sales remained stable, up 1.7%. Prepackaged onions played an important role in onion sales last year. There are also onion mixtures on the market and several variations on the packaging. Tasmanian onions reached a $18.5 million (€ 11.3 million) level in the last months of 2019, doubling from last year. In addition, exports to the relatively new Indonesian market have quadrupled, and exports to Europe have doubled.

New Zealand: new harvest to be launched

The new season is about to begin in New Zealand. It is reported that although there is less rain in early summer, people still have good expectations for the quality of onions.