Despite sky-high expectations, the onion season seems to be fizzling out. "The significantly lower prices have not yet resulted in additional orders. Some onions are heading to Eastern Europe, but frankly, that's hardly worth mentioning. In this declining market, many customers are waiting things out. They know that the onions they order now will likely be cheaper in a few days," says William Nannes of JP Beemsterboer Food Traders.
"We have seen a sharp price drop over the past few weeks, and in fact, there's virtually no market at the moment. I'm now being offered onions for 28 cents, but if I don't bite, I can get them even cheaper pretty soon," William continues. "But now, we need to pick up batches from the farmers that were sold for 40-45 cents. I just hope the farmers have good contacts and that they're not too easily rejected. I don't know where all the onions for the rest of the season are supposed to go, that demand will have to come from Europe. I've been seeing export figures of 14,000 tons for two weeks now, and I don't see that jumping to 20,000 tons overnight."
"I never really understood the sky-high expectations that were around all season. The whole season, prices were rising, but that wasn't based on reality. At the Euronion congress in Italy, it was already clear that the harvests were generally good everywhere. We priced ourselves out of the market and became too expensive. Last year, the trade fair in Berlin was a gamechanger that could have pushed onion prices, but this year it turned out at the fair that things weren't looking so great. Our former director Peter Beemsterboer always says: "99 out of 100 times, starting too high means you will end low". We simply priced ourselves out of the market."
"There's still a shortage of red onions, but even here, I doubt we can maintain the high prices once Egypt enters the market. Of course, there are imported onions in the market, but the competition from our former export countries, who have now found their own ways, is much greater. People who have stock, I would advise not to wait too long if they can get rid of their onions now. After all, the quality is not going to improve. Moreover, you see that the sentiment in the market is changing, now that everyone sees what kind of onion supply is heading our way next year."
For more information:
William Nannes
J.P. Beemsterboer Food Traders
Tel.: +31 226396408
E-mail: william@jpb.nl
www.beemsterboer.nl