According to the United States Department of Agriculture (USDA), onions have become the second most consumed fresh vegetable in the US market, as per capita consumption increased by 15%, going from 18.98 pounds in 2016 to 21.91 pounds in the 2017; and Peru is the country's second biggest supplier from abroad.
In addition, according to the USDA, onions were the fifth most profitable vegetable, as in 2017 the production value in more than 20 states throughout the US amounted to US $ 971 million, stated Peru's Commercial Office (Ocex) in Los Angeles.
However, this production does not meet domestic demand; as such, in 2017, US onion imports amounted to US $409 million, according to data from the Department of Commerce.
Ocex highlighted the importance that the Peruvian onion was having in the United States, as the country was able to export up to US $50 million in 2017, achieve a market share of 12.4%, and increase exports by 39.5% over the last five years.
Peru has become the second most important supplier of onions to the United States, only surpassed by Mexico, which accounts for 74% of imports, because it has the advantage of being located close to this market.
One of the varieties produced in the United States that stands out is the Vidalia onion, which is cultivated in the state of Georgia. Its only limiting factor is its seasonality, as it can only be grown between April and September.
Supply window
Therefore, US importers and distributors look for suppliers in foreign markets. Since the Peruvian sweet onion is similar to the Vidalia variety, it is ideal to substitute is, as its seasonality in Peru coincides with the window available in that market, i.e. between February and August, which has contributed significantly to the growth of Peruvian exports to the United States.
Wayne Mininger, the executive vice president of NOA, told the OCEX Los Angeles: "approximately 50% of onion consumption is concentrated in the retail market and the other 50% in the food service industry."
"Whole or peeled onions are commonly sold to consumers in the retail market, while peeled, sliced, cubed, or chunked onions go directly to the food service industry that serves restaurants, hotels, and educational institutions, among others," he added.
Business strategy
Knowing how this product is used would allow developing a commercial strategy that facilitates the expansion of the presence of products with added value in the food service industry, which require a greater processing to achieve different presentations, such as slices, cubes, and rings, among others.
Peruvian companies should take advantage of this niche market in order to expand their presence and to ensure their exports have a greater profitability.
Source: gestion.pe