River Onions' operations have long rested on three pillars: supplying Class I onions in big bags to Italy, exporting peeled onions from Poland to Belgian processing plants, and selling lower-grade onion batches to the Polish market. To raise this last activity's profile, this Dutch company recently launched its Polenuien.nl platform.
© River Onions
Arie van Baalen says the platform is meant for batches that are less suitable for the Dutch market, but could sell in Poland. "They're often colloquially called 'Polish onions,' which is why we chose that name," he says. The platform wants to offer growers a direct route to the Polish industrial market, with speedier, more transparent trade.
Complement existing trade
© River Onions
According to Arie, traditional trade via brokers remains vital. "There are still many middlemen in the onion sector, some of whom we've been working with for years. We don't want this platform to replace that structure, but rather complement it."
Growers can add information about their batches - like quantity, size, and quality - to the website. A price estimate is provided shortly thereafter. If necessary, the batch is assessed on-site, and then River Onions handles the logistics and payment.
"It's not a marketplace, it's more of a purchasing reference for growers. Since we primarily use commission agents, some growers aren't as familiar with us," says Arie.
Correct onions to correct channel
Many batches unsuited to processors in the Netherlands find their way to Poland. There, explains Arie, are hundreds of buyers with varying quality requirements in that country. "'Polish onions' are often lumped together, but there are many different sales channels. Our experience helps ensure the right onion reaches the right buyer."
© River Onions
German batches and tough market
River Onions has recently been receiving more supplies from Germany. "That's an interesting market for us. We can often even still place shipments with minor imperfections in the right channels," says Van Baalen. He, however, considers the current market challenging.
After New Year's, exports to Africa largely dry up, leaving plenty of processing volumes in the Netherlands." According to Arie, the sector currently processes about 55,000 tons per week. In quiet times, exports can decrease to between 20,000 and 25,000 tons. "That makes it hard to raise prices," he explains.
© River Onions
Sector under pressure
Aside from trade, Arie sees other changes in the sector. Smaller packing facilities are under increasing pressure because large processors operate primarily on volume. Cultivation faces challenges, too, with yields and quality lagging in some regions.
"Getting only a few cents for your onions is a heavy blow." Arie points out that some growers, though, often quickly forget the good years. "There have been higher prices in recent years," he concludes.
For more information:
River Onions B.V.
Tel: +31 (0)418 726972
[email protected]
www.river-onions.com
