Onion demand is there, but prices are not

The line between too much and too little is thin for many agricultural products. In seed onions, the line is especially thin because of the relatively short season. Demand from abroad for Dutch new onions is good. That also applies to supply. The market is fairly balanced, but that balance can just as easily be disturbed again in either direction. Trade in onions between growers and processors is running sluggishly. Prices are on average at a level that is hardly or not cost-covering for the grower. Of course, we are coming from a situation in which the last onions of the 2025 harvest were no longer worth giving away. Partly by trying to force matters with the harvest of winter seed onions during very warm days, some lots were also ruined. With a potato market that performed terribly last season, grain for which prices are very modest and a second half of the onion season that disappointed, the confidence and especially the bank balance of many arable farmers has taken a hit. Healthy demand The positive thing for the onion market is that demand is good and broad. Some remains within Europe, some goes to Central America and, among others, the African Ivory Coast is active in the market. Possibly, if we move a little further along, some could also go to the Far East because of extreme weather in China. Given the longer transit times, early seed onions are not the first choice there. There are rumors that Senegal could open early this season. Exporters who do a lot of business in that direction are by no means sure of that. Every year someone says something about that to influence sentiment. The African practice is often different, according to an insider. Demand for onions is good for the time of year, but the bale price is under pressure. Some say that demand is good because we as the Netherlands are competitive on price. Others think that if we collectively dare to ask a bit more, that demand will still hold up. The fact that all sorters are now gradually restarting and that we have had a good week for harvesting seed onions does not really help in that regard. Next week could then cause some extra pressure on the market. Bale price takes a step back The DCA Packed Onions Benchmark Price is taking a step back again this week. Small and jumbo onions are not very common in seed onions. The main demand is for medium sizes and to a slightly lesser extent for large sizes. Prices between the different sizes remain close together.