Are the bad onions blocking the good ones?

It is tough for both growers and processors in the onion trade. 'That's part of it in February,' is a commonly heard remark. After carnival, the market sometimes tends to pick up. Whether that will also happen this season, opinions among growers and processors vary widely. Growers have had more confidence in the onion market than processors for almost the entire season. This week is no exception. Carnival is behind us, and the Lent period has begun. With that, we have had the C of the onion ABC, and the market can go up again, some growers reason. It is not very busy in trade. Transactions are being made, but in many cases, it involves onions from which the grower needs to part soon. 'If you see a yellow spot when cutting an onion now, it's best not to take the risk that it could still be sold in four or six weeks,' says a trader. The combination of somewhat compelling supply and a modest export is not beneficial to the grower’s price. Quality problems in a broader sense are generally not positive for price formation. The lesser onions often block the good ones. The temptation for processors to snap up a lesser batch at a favorable price and either work it up or mix it with good onions is often high, with all the consequences that entail. Due to the problems arising here and there with sprouting, peeling, fusarium, bacteria - you name it - it is logical that (especially growers) reason that the still reasonably considerable stock of onions that hangs over the market, when we offset the CBS estimate against export figures, results in practice in a much smaller outcome. Whether that will yield the desired effect of a higher onion price is a different matter. Quality Among sorters and exporters, there are different currents about the direction in which the onion market should go. Some say that compared to other suppliers within Europe, we are far too expensive. According to them, the only way to get demand going is to significantly lower prices in the Netherlands. Other exporters and processors are less definitive. A lower price does not bring more demand. The sector, they believe, would benefit much more from a stabilization of the market so that customers at least do not wait until the very last moment in hopes that something can still change in the meantime. 'Let's hope that Austria and Germany empty quickly and that they come to us from the Eastern bloc,' says a sorter. If you are not the cheapest, you must ensure that you stand out in terms of quality according to some insiders. And although there are quality problems, there are also certainly plenty of beautiful onions to be found that have no issues. All the theories about which way it is going and what is best for the onion sector are, of course, nice, but in practice, the DCA Packed Onions Benchmark Price remains under pressure. Now that exports are modest, there is quite a fierce competition among sorters for the available orders. 'Those who operate at minimal capacity or are completely closed might have the best view of it,' says an insider.