While the current onion campaign kicked off with low prices, following one of the worst winter seasons in recent memory due to market oversupply, the trend from April has been and remains positive, helped by higher demand from Latin America, as explained by César Ruescas, manager of the Valencian company Ruescas Export, in an interview to FreshPlaza.
"From late April, the Brazilian market started showing interest in our onions and prices have been rebounding ever since. Prices this campaign have been good as a result of strong demand from countries which increasingly appreciate the quality, taste and calibres of our onions compared to those of our competitors, like the Netherlands," affirms the exporter.
A campaign with small calibres
The weather this year has been far from ideal, with prolonged high temperatures and storms which unfortunately were accompanied by hail on several occasions. This, according to César Ruescas, has not taken a toll on the product's quality, although calibres have been reduced.
"This is a campaign with smaller calibres, although this has helped us to export to South American markets, where they have a preference for these sizes," he explains. "For the new campaign, which will start in the coming days, we are also noticing a slight lack of large calibres, although there are areas where these sizes predominate."
Chile and Argentina producing less and Spain storing greater volume
In the words of César Ruescas: "For Chile and Argentina it is becoming increasingly costly to produce a kilo of onions, due to rising labour costs and the continuous rise in freight rates, and taking also into account that the Dollar/Euro currency exchange rate is taking a negative impact on all imports into Europe."
"There is another very important factor against southern hemisphere onions, which is that Spain is keeping more onions in cold storage, where these remain in good condition," he points out.
Spain can import onions from these countries, but "unfortunately, it cannot export due to the limitations on onion imports imposed by those governments."
Growing exports to third countries
César Ruescas explains that exports to countries outside the EU are on the rise, as growers are capable to provide onions to destinations which take over 30 days to reach. "However, Europe remains our main market, as our onions are already established there and can perfectly compete with those of other European countries because of their characteristics."
As for the impact of the Russian veto, he says that "It has not affected us much, because Russia usually produces enough onions and when they need more they are usually supplied by neighbouring countries."
About Ruescas Export
The Valencian company owns about 250 hectares located in Valencia and Castile-La Mancha, in addition to working with associated growers. Its specialty is yellow onions or the Grano variety, as well as sweet onions, which are mainly imported from South America. Furthermore, they also work with white, red and peeled onions.
For more information:
César Ruescas
Ruescas Export S.L.
Polígono Industrial de Picassent
C/2 - Nº20, 46220, Picassent, Valencia
Spain