More expensive purchases force rapid increase in prices packed onions

Prices of packed onions are rising, but not yet at the same pace as purchase prices. To pass on the higher procurement costs, prices of packed onions will have to increase considerably further. Graders, packers and exporters are concerned about the rapid rise in grower prices. They naturally understand that growers need higher prices in this dry year to compensate for lower yields, but they nevertheless consider the current sentiment among farmers somewhat excessive. They warn that price and quality also need to be in line with market demand. However, it is difficult to say where that balance lies. Particularly as sales of seed-grown onions have yet to get properly under way, it remains unclear how demand will respond to the higher price level. A record volume of onions was sold last season, partly because prices were low. On the other hand, it is argued that customers are prepared to pay more when supplies are tight. The challenge now is to assess the situation as accurately as possible to avoid losing too many sales opportunities. Buyers are therefore trying to temper market sentiment somewhat, while growers are keen to stoke it further. Prices of packed onions are rising by €2.50 this week to around €27.50 per 100 kilos for medium-sized onions. Most medium-sized onion sets are changing hands at €27. These onions are mainly destined for Côte d’Ivoire and Senegal. Some business is already being done in seed-grown onions as well, at around €29 per 100 kilos packed onions. There is still relatively little activity in large onions. Given the greater risk of quality problems, packers are somewhat reluctant to market large onion sets. This applies even more to the very largest sizes. In general, sales are concentrated mainly on the 50–70 millimetre size, partly because this is the size demanded by Africa, which is currently the main source of demand. Very large volumes of onions are being shipped this week. Although Senegal has not yet opened its borders to imported onions, three vessels are already on their way. The West African country is expected to start allowing onion imports by the end of next week. The two vessels that departed at the end of this week should arrive at around that time. The vessel that left earlier will probably have to wait a little longer. Exports get off to an early start Africa has entered the market early this season. This is also reflected in the export figures. Exports have made a very strong start to the season and are only just below the record start recorded for the 2022 harvest. One area of concern, however, is onion quality. Although onions are normally of very good quality in a dry year, this has yet to be confirmed. Onion sets are showing many problems, including skin loss, bacterial issues and internal defects. Some packers fear that similar problems could also affect seed-grown onions. Harvesting of these onions will gather considerable pace next week, at which point the quality situation should become clearer. Market expectations are that Fusarium will once again be widespread. In addition, some believe that the extensive irrigation used to keep crops green for as long as possible may also have increased the risk of quality defects. Sunburn To prevent sunburn, onion harvesting was suspended during the extreme heat at the end of this week. As temperatures fall, harvesting will resume. However, the soil is so dry that water is needed to lift the onions properly. On fields where irrigation is not possible, this will remain extremely difficult. Rainfall is forecast for next week, but not in sufficient quantities to immediately resolve the problems with lifting the crop. Moreover, it remains to be seen how much of the forecast rainfall will actually materialise.