Onion prices were already high and in the last week the mood has become even more robust. "It is expected that the onions will run out even faster than initially thought. This has resulted in an overstrained market," says Martijn van Damme of the Dutch wholesaler, Dacomex.
"Prices are increasing dramatically. They have climbed by 10 euros in the space of one week. They are now already selling at EUR0,45 to EUR0,50 for January. EUR0,40 is also already being paid for onions being sold presently."
"This massive effect on prices is mainly due to the fact that supermarket suppliers need to hold on to their onions until import onions become available. They now have to buy in advance if they want to be able to supply their buyers with onions until March. That, however, does not include exports", continues Martijn.
"The question is how Africa, as the only main buyer, will react to this. The advantage is that there is not an oversupply on the market. So, the price does not end up being EUR0,01 per kg. However, the onions are becoming very expensive. This price hike translates into lower consumption. All in all, it will be an exciting market in the upcoming months", he concludes.