Idaho and Oregon onion price and demand down

Demand and prices in the onion market are lower than they have been in the last five years. This decrease comes from major production areas in the Northern Hemisphere experiencing great growing conditions in 2014. This situation is not only exclusive to the United States, as North America, Asia, and Europe are all experiencing bumper crops.

“Most areas in the world have an excess of supplies relative to demand,” explains Stuart Follen of SL Follen Company. “This is creating over supply situations in many parts of the world, including the United States. To have all major production areas experiencing high yield and good quality at the same time is quite unusual. However, when this happens it results in low prices. This is the situation we are seeing now.”

Since 2013, acreage has increase by 10-15% in the Idaho and Oregon regions. Onions have been profitable for growers causing little incentive to lower acreage while other crops which could grow in ‘onion ground’ have lost market value. “Corn has lost 50% of its value since 2013,” states Follen, “ground which may have previously been used to plant corn in 2012 or 2013 was instead used to plant onions. This resulted in the increased onion acreage.”

Using drip irrigation to grow onions has lead to a significant increase in the volume of onions grown in Idaho and Oregon. “Onions grown under drip irrigation can see a 30% yield increase over those grown with a “non-drip” irrigation system,” declares Follen, “Idaho and Oregon may be approaching 50% of all onion crops being cultivated using drip irrigation. The affect is significant.”

Idaho and Oregon onions are traditionally exported to Canada and Mexico. Some volume is also dedicated to off shore markets like Asia. “This season, Asian export markets are slow due to the large amount of crop availability and the strong value of the US dollar,” explains Follen.

For more information please contact:
Stuart Follen
SL Follen Company
Tel: 503.222.6164
Fax: 503.222.5839
follen@slfollen.com
www.slfollen.com