Medium size remains under pressure, coarse onions in demand

Sorting companies have a puzzle job bringing the onions in different sizes to the market. Coarse onions and supers are in strong demand, and small onions do sell, but it is the medium size that is causing hold-ups for sorters. Some companies are at a standstill because they want to sell their stock of medium-sized onions first. Once those onions are gone, they can start sorting again. Otherwise, medium sizes stack up without a decent market for them. A sorter expresses it as follows: on average, half of the onions in a batch are smaller than 60 millimeters. There is a market for about 30%, meaning that there is more supply than demand for these onions. This results in prices continuously falling to secure an extra order. However, this does not lead to extra demand for onions. It is increasingly becoming a struggle with the undersized ones. Various traders, sorters, and exporters currently find the onion market quite dull. There is only about half a week's work available. This is not surprising, as this is actually the case every year during this period. When Senegal closes its borders for imported onions in January, the demand for Dutch onions halves. Therefore, onion exporters feel there is little to do each year in February and March. This year, that dip seems to last longer for a large portion of the companies. The frustration is further fueled by falling prices. The bale prices have already dropped so low due to the weak demand that there is no profit left for anyone. They don’t give each other a break on the losses, responds a sorter and exporter. A small silver lining this week is Morocco. This North African country has a temporary gap to bridge from the old to the new harvest. However, they are asking for coarse onions of 60-80 and up and supers. Africa is normally the main destination for medium sorting, but now Ivory Coast is also asking for more coarse onions. This development is also reflected in the DCA Benchmark Price for Packed Onions. The DCA Benchmark Price for onions in the sizes of 40-60, 45-60, and 50-70 millimeters decreases this week by €0.50 to €16 per 100 kilos. Coarse onions of 60 millimeters and up show the same drop, landing at €19.50 per 100 kilos. The price for the supers remains at €25 per 100 kilos, and the onions of 35-50 millimeters stabilize at €15.50 per 100 kilos.