While volumes look greater than 2016 for spring onions, prices are staying steady and on the low end. “There’s a lot of supply right now. Volumes seem to be more this year—it seems as if there’s at least 20 per cent more on the market than last year,” says Manuel Arellano of San Diego, Ca.-based Altar Produce. “There are a lot more piles sitting on everybody’s coolers.”
That’s changed from the winter where Altar had some lower volumes than anticipated. While the industry seems to be past the transition period moving out of Mexico, at the same time growers seem to have beefed up their volumes. “It’s significantly more,” says Arellano. “I did hear from other growers that they grew a bit more this year.”
Competition from all around
Competition meanwhile seems to be from domestic and foreign sources. “In Europe, it’s coming from Egypt,” says Arellano. “And if you’re shipping to the East coast or into Canada, business is coming from New Jersey, Canada and also Georgia. And on the West Coast, Washington and Oregon also have local product.” At the same time, prices have stayed on the low end. “It’s been lagging,” he says. Last year around this time, green or spring onions were selling for $6-$8 FOB per carton. “And it’s been dragging at about $5 for the last week or two this year,” he says.
Looking ahead, Arellano notes that production will decrease in Mexico shortly. “And I’m hoping within two or three weeks, we’ll see an increase in price,” he says. “Volume on our side will drop a bit but not much. And if that happens with everybody, the price will hover around the $6. It’ll get about $1 stronger in the month. But I don’t think we’ll see an $8 FOB all summer long.”
For more information:
Manuel Arellano
Altar Produce
+1 760 357 6762
manuel@altarproduce.com
www.altarproduce.com