According to some traders, while demand is high in Europe, retail prices are going down at the moment and are not much higher than those paid at origin. "After the onions have been handled, the prices paid on the market have given us a tight profit margin," explains a Castilian-Manchegan trader. The situation could also change in the field, given that retail prices continue to fall, while the start of the harvest in Castile-La Mancha is around the corner.
Over the past three weeks, the average price at origin has fluctuated between 22 and 25 cents per kilo, while retail prices oscillate between 30 and 35 cents per kilo, depending on the market.
The sector is also paying attention to the developments in the Argentinian onion sector, as the fall in volume expected this year could cause the demand for Spanish onions to skyrocket in Brazil. Last year, Spain already shipped an interesting volume to this market.