US: Green onion prices drop as weather warms

Unusually cold weather during December slowed production of green onions in Mexico, but a return to warm weather has led to increased yields for Northern Mexico's growers. More volume has increased the shipments into the United States, and prices have dropped accordingly.

“Growers were struggling during the last few weeks because of cold weather and rain,” said Manuel Arellano of Altar Produce in Calexico, California. “Workers couldn't get into the field because of the mud and the cold was preventing onions from developing.” That tightened the supply of onions from Sonora and Mexicali Valley, so prices shot up. Prices were up to $50.00 per carton just a few weeks ago, noted Arellano, but they've since decreased considerably as yields have improved.

“The volume of imports is now good and strong,” said Arellano. “The weather is now perfect for the seed in the ground. Quality is optimum and supplies are good.” With the increase in supply, prices are now in the mid-20s for a carton of bunched 48s. Arellano believes the market will continue to ease in the coming weeks, and he thinks prices could get as low as $10.00 per carton by February 8. Prices are usually around $15.00 per carton for this time of year, so $10.00 per carton wouldn't be too big a drop – especially considering the strong market that capped 2015.

“The market has been very active this season with a lot of people buying green onions,” said Arellano. “On supplies, except for the hiccup at the end of December and beginning of January, it has been a normal year.”

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Manuel Arellano