The rise in onion prices is causing satisfaction throughout the chain

It is small change with which the DCA Benchmark Price for Packed Onions is rising weekly. With this, exporters hope to keep their most important customers as friends. Sorters say that they have to raise prices, as purchasing is becoming more expensive. It is the growers' price that forces them to increase sales prices. They must act cautiously to avoid damaging the sales volume. The rising price trend in the onion market is causing satisfaction throughout the chain. Of course, growers want to raise their prices a bit stronger. Despite a large harvest, they draw confidence from the extremely large export. Sorters and exporters are applying the brakes in this regard. They want to prevent any disruption that negatively affects the export pace. But all in all, everyone is happy with a rising market. And, so the thinking goes, as long as that increase happens in small steps, customers can get used to it. Customers absolutely hate it when it turns out that they have paid too much for a purchase. As long as those prices are rising slowly, they will not find themselves in that situation. Furthermore, there are fewer claims to be expected in a rising market. If customers reject a shipment and have to buy other onions, they end up paying more than for the product they just received. So the longer this situation can be maintained, the better for the sales volume. With the traditionally best export weeks ahead, this is very important. Highly dependent on AfricaThe Dutch export is currently very dependent on the sales opportunities in Africa. However, the population is growing and in some countries, per capita consumption is also increasing. But if that outlet starts to slow down for whatever reason, it creates a significant problem. A recurring concern is the dropout of Senegal in January. When the borders close for import onions to protect the local harvest, other markets need to be targeted to keep onion sales alive. Spain and Portugal are now starting to show interest, so perhaps more onions can be supplied there early in the season. We are missing Poland significantly in the market this season. Last year, that country provided a solid price floor by quickly absorbing the poorer qualities at prices that really established a bottom in the market. So far, Poland has not made a strong appearance. They have a smaller harvest themselves, but what is coming from the country is reported to all be of the desired sorting. Little by little, the Poles are starting to inquire more about onions from the Netherlands. The point, however, is that prices in Poland are low, and therefore they are offering little for Dutch onions. They only want to offer 3 to 4 cents per kilo, which is too low to generate a good flow. Major leadersSo far, the export is mainly leaning on Africa. With Senegal and Ivory Coast as major leaders. In week 42, these two West African countries accounted for a total sales of around 20,000 tonnes. As a result, another week was noted with exports above 40,000 tonnes. It is now the fifth week this season, which is unprecedented. The large export and rising grower prices have led to the DCA Benchmark Price for Packed Onions for most onions now rising to 24 cents per kilo. For the coarser onions, a bit more can be made, while the prices for the triplets are lagging a bit.