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Eric Moerdijk, Monie:
"Growers' prices not reacting to major onion exports"The onion market has been bustling in the past few weeks. "Over the past five weeks, we had a lot of work putting the capacity of produce to good use", says Eric Moerdijk of the Dutch sorting and packing centre, Monie. "Last week a considerable volume was again loaded in Vlissingen. Bale, and grower prices, however, remain stable. There is a lot of availability, and for now, this will remain the case. We don't see growers' prices reacting to the large volumes being exported. There is, of course, also a big chance that if prices climb, exports will drop."
"From the latest published export figures, you do see a correction after two extreme weeks of exports of more than 13 000 tonnes to Senegal. We are left wondering what they are going to with this large quota in Senegal. Apart from Africa, Malaysia is also reasonably big in the market, Indonesia has taken good volumes, and Central America is a decent customer. Within Europe, exports to the United Kingdom are particularly low. This is partly due to Brexit, but I think is it because the British growers, just like the Dutch ones are less confident in this, the second half of the season. After last year's debacle, they are happier selling their own product."
"It is difficult to predict how the second half of the season will go. The onion quality varies greatly, but if we can retain the better players in the second half of the season, we can certainly create opportunities. The fact that the product's quality is so variable, will, however, remain an issue. Last year, the onions' quality stayed very good, but this year there are a number of poorer quality batches. These low prices often result in stored onions not selling so well. Growers will certainly be aware of this", concludes Erik.
Publication date: 11/27/2017
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