The market price of Chinese onions has been in decline for several weeks. In addition, Chinese onion export has dropped as a result of the COVID-19 pandemic. Overall demand for onions is falling because consumer power is relatively weak at the moment.
Mr. Yang of Feng County Huatong Vegetable Cooperative recently analysed developments in the Chinese onion market in the last few weeks: "Our yellow onions have only just entered the market. This year the purchase price is already lower than the cost price. There are two main reasons for this development. First, the export market has not yet recovered from the impact of the COVID-19 pandemic.
"Second, onions from various production areas enter the market in large volumes around the same time. However, the market conditions are slightly better for red onions than yellow onions. The latter are mainly produced for export markets and processing factories. The red onions are mainly sold in the domestic market. The current price is around 0.18-0.25 yuan [0.03-0.04 USD] per 0.5 kg for yellow onions and 0.30-0.40 yuan [0.04-0.06 USD] per 0.5 kg for red onions. The price of yellow and red onions has shown no significant fluctuations since onions from Feng county entered the market in large volumes."
The Feng County Huatong Vegetable Cooperative has plantations in Feng county in Jiangsu, Suzhou in Anhui, and Yongcheng in Henan. The plantations cover a total of more than 133 hectares. Mr. Yang explained that there has been a clear development in the onion industry in the last few years.
According to him, "Chinese market demand for red onions is growing quickly and is now much larger than a couple of years ago. Only a few years ago almost all onion production areas in north China produced yellow onions, but these days clients of onion production areas in Beijing, northeast China, and Shanxi purchase yellow and red onions in equal volumes. The main reason for this development is the superior flavor and color of red onions. Their market share has been growing for years."
"Chinese production areas can supply the market all year round. We also have refrigerated storage facilities with a capacity of 10 thousand tons. This helps us guarantee that the onions we deliver to our clients are always of the best possible product quality. At the moment we have almost emptied our warehouses. We will start buying onions to stock our warehouses in another couple weeks." Feng County Huatong Vegetable Cooperative is specialized in onion retail and onion export. The company team already has years of experience in this industry. The cooperative mainly exports onions to Malaysia, Russia, and Vietnam. In addition, the cooperative also supplies red onions and yellow onions to the domestic market. "In the future, we hope to bring our onions to even more overseas markets and give even more consumers a chance to experience the high quality of our onions."
For more information:
Feng County Huatong Vegetable Cooperative