Egyptian onions are currently fetching high prices in both the domestic market and through exports. The reason is that last season was affected by the devaluation of the Egyptian pound in October. This led to a lucrative export market, prompting Egyptian onion exporters to take full advantage and clear out their onions in storage. Due to these developments, the season turned out to be rather short. The lack of supply for the domestic market in turn caused prices to increase.
“Farmers are expecting good prices during the season for red onions, which should start around May. As the weather has been great, quality and volume should both be good,” says Mohamed El-Sheikh of the Egyptian grower and exporter, Trade Island. The season for yellow onions started in February and should last until June.
The high prices had a negative effect on the Russian export market, as Russian customers are finding it hard to keep up with price hikes of 50 to 70%. However, according to Mohamed the Russian market for onions was already losing momentum even before the devaluation of the Egyptian Pound came in effect.
The main competitor for Egyptian onions is India, along with China and the Netherlands. Though volumes from India might be larger, Mohamed considers the Netherlands to be the rival that really sets the bar for onion production. “The position of Egypt as an onion producing country is strong, but we’re still well behind a competitor like the Netherlands, as we lack facilities and machinery in the field. We’re currently field-testing new varieties, as we’re searching for a perfectly round onion, like the ones found in the Netherlands. With this in mind, we travel to the Netherlands about three times a year to learn more about methods and varieties,” concludes Mohamed.