"Self-exporting for us too risky"

How the season will finish is, in his opinion, difficult to estimate. Eric: "If the production estimates made by growers are accurate, there will still be a considerable volume to export in the second half of the season. Not an impossible task, but a challenge, partly because of the Russian boycott and the high yields in other European countries. In any case, it is hard to predict.

The biggest stumbling block for packing centres is their huge sorting capacity and the fierce competition among processors and exporters. "We are also in a market that is becoming increasingly transparent. Growers are now well-informed about market prices and trends and this has an impact on the market. Due to the large sorting capacity and exports, the demand for onions is sometimes quite big, and growers respond to this by temporarily supplying less or nothing at all. This often results in the prices paid to growers increasing, while the price per bale does not rise due to fierce competition between processors."

The biggest challenge, I think, is to differentiate yourself as a processor from your competitors," says Eric. "This may be achieved in many ways, for example, by entering into cooperation with growers, targeting specific customers, or focusing more on quality or new markets." He believes that raising the quality standards is important for the entire sector. "In the breeding and development of new or existing varieties, there is a growing focus on quality rather than yield as the most important factor. We also see more and more tests and experiments designed to help improve the product's quality. Lastly, growers are increasingly aware that quality can indeed make the difference when it comes to the turnover generated by their crop. In the Netherlands, we have an enormously efficient production and distribution chain, where the risks are well spread. The cost per kilo, both in cultivation, processing and logistics, is very competitive compared to many other countries."

Johan Boone, of Gebr. Boone, from Oostdijk, points out that declining margins are a major stumbling block in the onion business. "For years, the increasingly tighter margins have been making things very difficult for us. There is not a lot of room between growers and exporters, but as packers we have to be right there in the middle. Purchases are too great, sales too low and there are more than enough packers," he said in mid-February. "There is not enough demand; we have too much capacity altogether." He stated that he had the feeling that few onion companies that didn't also export themselves would remain. "For us, at this time that is absolutely not convenient. First and foremost, it is not what we are specialised at, but it also brings other problems with it, such as residual payments. Of course, this is naturally a hot issue, but for now our focus remains on growing and packing the onions. Packing stations devoted to supplying the best quality onions as well as special sizes and packaging will naturally always remain."

For now, the season has gone fairly well for Gebr. Boone. The onions are of good quality and the packing centre has so far done a good job. "Unfortunately, we are struggling with tight margins, so there is very little profit for us packers. How do I look forward towards the coming years? That I could not say. There is a lot of uncertainty worldwide, and mostly this year because of the consequences of the Russia-Ukraine dispute. For the remainder of this season, the picture is bleak. Russia is not an option; Eastern Europe needs to gather momentum, and Africa is again closed. Only the Caribbean and Brazil are still good options. He believes that the few opportunities available are heavily dependent on quality and flexibility. "You need to select the best people to work with if you want to be able to make a difference in the market, but of course, we rely entirely on the exporters." He gives the example of the Caribbean and Central America; a market which this year demanded mostly Class 1 and Class 2 onions. "Being able to continuously supply a consistent quality is something we will be focusing on in the coming years, but all in all, the onion trade always entails huge challenges."