China is one of the largest onion producers in the world. The country supplies a huge domestic market and exports to overseas markets as well. In the last few months, the export price of Chinese onions experienced frequent fluctuations.
Mr. Jack Meng of Jining Greenfarm Import and Export Co., Ltd. recently shared his analysis of current conditions in the onion export market: "Onions from production areas in Sichuan and Yunnan entered the market in March. Around that time, traders were rushing to buy as many onions as possible. More important perhaps is the fact that Indian onions had not yet entered the market back then. The export price of Chinese onions was therefore quite high in March and the supply volume was more than sufficient.
"The onion production season in Sichuan is practically over by the end of April, and the onion production season in Yunnan will enter its final phase around that same time. The price is now much lower than when the onions first entered the market in early March. The price practically dropped to the floor. However, we predict that the price of Chinese onions will not fall further in the coming weeks. Onions from production areas in Henan will enter the market in the middle of May."
Some reports state that the current low onion price is the result of the COVID-19 pandemic, which affects nearly every country across the globe. Large volumes of onions are ready for export, but transport to overseas markets is almost impossible. The onions can only be absorbed by the domestic market, which puts a lot of pressure on the price.
However, according to Jack Meng, there is another reason why the price of Chinese onions is currently this low: "Not only is there no way to export our onions, but another important factor is the arrival of Indian onions on the market. The Indian onions entered the international market this month. Their price is not high and this put pressure on the price of Chinese onions, which consequently dropped. Even though the price is quite low, we are still able to export our onions. We mainly export onions to Southeast Asia. We have not encountered difficulties so far."
In addition to onions, Jining Greenfarm also specializes in the export of other agricultural products. "The new harvest of Chinese potatoes is currently entering the market. The price is currently quite high, but will come down when the supply volume grows in early May. We mainly export to Singapore, Malaysia, Sri Lanka, and Thailand. We also export to some countries in the Middle East. Market demand is growing, but the price is still too high, so buyers are unable to purchase large volumes. Buyers are quite careful at the moment. However, the export volume of Chinese potatoes rapidly grows during May, June, and July. The potatoes we sell come from Tenzhou in Shandong. They are quite popular in the export market. In the future, we hope to supply even more overseas clients with delicious onions and potatoes from China."
For more information:
Mr. Jack Meng - Manager
Jining Greenfarm Import and Export Co., Ltd.
Tel.: +86 135 1547 1948