US: Onion store levels down nationwide

Strong post-holiday demand and weak growing conditions through 2015 have caused onion store levels to drop steeply compared to last year’s season.

John Vlahandreas of Wada Farms, a national produce supplier and marketer based out of Idaho, says that while some Northeast growers saw a slight increase in yields in 2015/2016, growers in the Oregon-Idaho area and Washington state saw production levels fall due to weather. “This year [the northwest] had a hot summer and a cold spring,” Vlahandreas says.

Figures released by the National Onion Association indicate that estimated nationwide production levels dropped by 7,524,900 bags this year’s season over last, a 7.7% decrease. Much of that decrease is attributed to Oregon-Idaho and Washington, where production cumulatively fell by approximately 5 million bags.

Vlahandreas says that lowered production has been exacerbated by product lost to shrinkage while in storage. “It’s what goes into storage and what comes out,” Vlahandreas says, noting that many onions that went into storage this year looking “gorgeous” started to show flaws three to five weeks later. Vlahandreas notes that shrinkage is expected, but that this year, shrinkage levels have been higher than typical.

Vlahandreas says that low supply levels have created favorable market conditions for onion suppliers. “It’s kept us up in the $7.00 FOB range,” he says. Vlahandreas expects those prices will fall later into January, when Mexican onions begin to hit the market.

While high prices are good news for American suppliers, Vlahandreas says many companies may run out of stocks earlier than typical this season. “Instead of us having northwest onions into late May… you’ll see some people closing up in March,” explains Vlahandreas. “In the start of the new year there is always a rush of business that drives price up… We will have to wait a few weeks to see where we are.”

For more information:

John Vlahandreas

Tel: +1 (503) 362-9900