Gansu is a major onion production area in China. The weather conditions and soil conditions are very well suited to the production of onions. The annual production volume in Gansu is huge and the product quality is excellent. That is why Gansu onions are popular with overseas buyers. Last year the period between August and October was the height of the onion harvest and the export season, but this year onion export is on the verge of stagnation. Mr. Wang Junjie, the sales manager at Jining Shangzhuo Food Co., Ltd., recently talked about current conditions in the onion export market.
Only in Gansu is the onion harvest currently ongoing. The harvest season is expected to last until the 20th of September. Manager Wang first introduced the conditions in production areas, "last year the price of red onions was high, so a lot of farmers joined in the production of red onions. That is why the production volume of red onions is now much higher than last year."
"The price of yellow 50# onions is around 280 USD per ton, and the price of peeled onions is around 400 USD per ton. The prices are more or less the same as last year," said manager Wang.
The volume of overseas orders declined by 50% in the last few months. "The main reason for this decline is the high shipping cost. We have already stopped exporting onions to distant destinations such as England. The current cost of shipping from Qingdao to Rotterdam is 14,000 USD per container. One container holds 24 tons of onions, which means that the shipping cost is around 600 USD per ton of onions. That is much higher than the product value, which is far out of the ordinary. We used to ship 5-8 containers per month to England, but it has been several months since we last sent a container there."
"Europe primarily exports fresh onions, and we mainly export peeled onions, so there is no competition with European export. And as far as we know the export conditions in Europe are not as they have been in previous years either. In addition to the impact of the pandemic, there are also quotas in several African countries that have an effect on European onion export."
"In all honesty, domestic demand for Chinese onions is still huge. Most of the onions that can not be exported are shifted to the domestic market instead, but we are a company specialized in export, not domestic retail. This year we have decided to temporarily halt the export of onions and focus on garlic, ginger, and chestnuts instead. The chestnut harvest has already begun, and the product value of chestnuts is higher than the product value of onions. This year the purchase price of chestnuts is low and the product quality is high. We have already received inquiries from interested buyers."
Jining Shangzhuo Food specializes in the export of garlic, ginger, and onions. Their annual export volume exceeds 2,000 shipping containers.
For more information:
Mr. Wang Junjie - Sales Manager
Jining Shangzhuo Food Co., Ltd.