Cheap onion exports to Africa remain strong

Although quite a lot of onions are currently being directed to digesters, a relatively large amount is also still going for export. Export volumes in the tail end of the season are considerably larger than normal. Dutch onions from the old harvest are cheap and therefore compete strongly on export destinations with onions from the new harvest. Especially in Africa, buyers are willing to consider cheaper alternatives. A country such as Ivory Coast normally imports somewhat more onions from surrounding countries during this period, but is now largely being supplied by the Netherlands. In the last week of May, almost 4,000 tonnes of Dutch onions went to this West African country, according to provisional figures from KCB and GroentenFruit Huis. Also in the first two weeks of this month, many onions have gone there, it can be deduced from initial export indications. The same applies to countries such as Guinea and Sierra Leone. Together with a flow to Great Britain, albeit somewhat declining, they currently account for a large share of Dutch exports. All in all, onion exports remain close to 20,000 tonnes per week. Normally sales decline quite sharply in June. Against any reasonable offer It is the low prices that keep things moving. At the moment, deals are being done against any reasonable offer. The amount of risk an exporter can or dares to take also plays a role. If the risks are high, separate agreements are made and somewhat higher prices are charged. If the risks are low, the onions are sold at very sharp prices. The latter is possible because the onions bought in from farmers cost little or nothing. Trading still takes place daily, but at prices of barely €2 or €3 per 100 kilo. By now, good onions are also still going to a digester for nothing. Assessment of risks According to an exporter, the onion prices currently range from €10 to €20 per 100 kilo. In this context, coarse onions are sometimes offered more cheaply than fine onions. The exporter says he is still offering one-week-old onions and bases pricing mainly on the risks he can and dares to take. In the case of more risk due to transport times, higher prices apply. On average, onions are currently being offered slightly more sharply than last week. The DCA Packed Onions Benchmark Price are therefore falling by another €1 per 100 kilo across almost the entire board. For medium onions, roughly €10 to €13 per 100 kilo is being paid. The price of large onions falls to around €15 per 100 kilo. Supers are still €1 to €1,50 above that. Start of the new harvest Meanwhile, a start has also been made with the marketing of the new harvest winter planted onions. This does not yet involve large quantities, but the start is there. Initially, sellers started with onion prices of €40 or just above. This week, trade has fallen to €30 to €36, in an attempt to bind buyers to them for a longer period. The first onions are going mainly to the Caribbean and somewhat coarser ones to England. For size 40/60, the price is €30 to €31 per 100 kilo. Coarse onions go for €32 to €33 and supers for €35 to €36 per 100 kilo.