The new Spanish onion harvest is facing a stagnant market due to an oversupply of the early domestic production, which is also clashing with the usual import batches available around this time.
"In the last two years, for various reasons, the global onion supply has been lower than usual, and historically high prices have been reached in the international markets, especially for the extra-early varieties," says Alfonso Tarazona, president of the Spanish Association of Onion Growers and Exporters (ACEC).
"Those of us working with programs have planted a bit more for fear of not having enough this year. Meanwhile, given the severe drought in the early producing area of Andalusia, many growers from Andalusia, as well as Murcia and Valencia, had assumed that the onion acreage would be reduced; therefore, they significantly increased their plantings for the free market," says Tarazona.
"This has resulted in notably more plantings of extra-early onions outside of programs, whose harvest has overlapped with the supply of the last stocks of the productions kept in storage, both in Spain and in other European producing countries, especially the Netherlands," he says.
In these circumstances, the sector is having a difficult situation, with a quieter demand than usual.
"Many growers are having trouble marketing their onions, especially those who have planted independently. I trust that this will teach us, as a sector, to try working in a more professional manner, with proper planning. Nowadays, information is much more accessible and we must strive for fluid communication between producers, marketers and customers," says Tarazona. "It's vital to learn to work with programs and contracts. Otherwise, we will face consequences like those we've encountered this year."
"Prices are balancing out after the drops recorded at the beginning of the season. Those working with contracts will cover their costs and make some deserved profits, but those who planted independently will have more difficulties," he says.
It should be noted that the rains in late March and April have taken a toll on the quality of the extra-early onions, although, initially, they seem to have been beneficial for the varieties that will be harvested between June and August. "From now on, the quality of onions is expected to improve, as the weather is highly favorable," says Tarazona. "Although to a much lesser extent compared to the early ones, the acreage devoted to mid-season and late varieties has also grown, but it is still too early to know what the yields will be like."
For more information:
Alfonso Tarazona
ACEC
C/ Hernán Cortés n.º 4
46004, Valencia, Spain
T: +34 963517409
[email protected]