Onion prices are currently rising again. “It is not even the result of more demand, because that has not increased. But farmers are keeping their onions behind the scenes, and trade does not have much in stock. Farmers who have just harvested their onions, are not willing to just sell them. The increase in price is therefore more of an artificial correction than the normal supply and demand game,” Gerard Hoekman of Mulder Onions concludes.
Gerard Hoekman and Rene Vanwersch during the Fruit Attraction
The bale price is already headed towards 16 cents. “For markets such as Africa, that do not have much choice, it will be all right. But for markets such as the Far East, it is a dangerous game to play. Every increase in price is a call for more competition from other producer countries,” Hoekman continues. He therefore expects a difficult market in the coming weeks. “The ratio between field crop and bale price is unbalanced.”
Hoekman says quality is a redeeming feature. “That is just good. Although it remains to be seen how good the quality keeps in storage. The onions were harvested when it was quite warm. Will the MH30 treatment be successful? These are all things that could have an impact during the season.”
An agent expects the season to do well until the new year. “But I am more worried about the period after that. We are now trading for November and December, but we have no demand for the period after that yet. But you never know how the season will develop. A few years ago, the prices dropped in December, but then Brazil entered the market. Last year we exported much to Poland, but they now also have a good harvest, and prices are much lower.”
Mulder Onions BV
Hagenroderstraat 32
6464 CP Kerkrade
The Netherlands
Tel: +31 (0)45-5678700
Fax: +31 (0)45-5678708
gerard@mulder-onions.com
www.mulder-onions.com
Tel: +31 (0)45-5678700
Fax: +31 (0)45-5678708
gerard@mulder-onions.com
www.mulder-onions.com