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China: "Overall transport conditions for onions are not ideal"

"Gansu is one of China's major onion production areas. The production season starts every year in July and finishes around September. The warehouse stock can last until March of the subsequent year. The current onion reserves in Gansu warehouses are relatively large compared to the same period in the previous year. The purchase price in the field for red onions has recently shown a slight increase, as usual for this time of year. Overall, however, transport conditions are not ideal." This is according to onion grower and dealer, Mr. Chen Yongming.


Red onions


Yellow onions

"There are multiple reasons that together create the current depression on the onion market, but one main reason is the interaction between market supply and demand. On the one hand, the growth of the domestic and export markets has been slow since 2017 up until today. This means that there is not enough pull from the market. On the other hand, onions from various production areas enter the market together. This means that the supply volume greatly increases. It is impossible for onion prices to rise under these conditions. The current price is slightly lower than it was in the same period in the previous year. We estimate that in the short term prices will not show a large increase."


Recently harvested yellow onions

"We both sell our own onions and deal in purchased onions. We deal in red onions and yellow onions from Gansu. Our products predominantly sell in the wholesale markets and supermarkets of first- and second tier cities in China. As far as consumers on the domestic market are concerned, they show absolutely no preference for red onions or yellow onions. Overseas consumers, however, show a clear preference for yellow onions. This is particularly true for Korean consumers."

Chen Yongming
Onion grower and dealer
Company telephone: +86 153 7929 6111 
Company e-mail: 804128668@qq.com

Publication date: 2/9/2018


 


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