The onion market is currently at a tipping point, according to Eric Moerdijk of Monie. "Is demand picking up, and can we make another move in the bale price, or will that upturn not happen? That is the question hanging over the market at the moment. This time of year is always tricky, as February is perhaps the toughest month in the onion trade."
"Sales are ongoing, but that's about it—only around 40% of the total processing capacity is currently being utilized. Prices at the farm level are rising, while bale prices are under some pressure, making the situation challenging. For direct sales of good-quality onions, farmers are quickly asking for 15 cents, and for sales in March, April, and May, prices are already reaching up to 20 cents. Quality differences continue to affect prices, both at the grower level and in the bale market. I expect we'll be dealing with onions showing some defects throughout the season."
"But if you have to buy onions for 15 cents, it's not profitable to package them for 20 cents. I hope this realization will soon sink in across the market. In my view, a lower bale price makes no sense—you don't sell any extra volume, and we aren't more expensive compared to neighboring countries. It's better to create stability and confidence among buyers," Eric continues. "For the market to rebound, a country like Brazil would need to enter the market unexpectedly. In Europe, inquiries and orders are coming in from all directions, but the volumes are not significant yet."
A Divider and a trio of Quality Graders from Flikweert Vision are currently being installed at Monie. "This represents a different way of working for us. We invested not only to improve quality but also to achieve some labor savings. If you depreciate a machine over five years, you know exactly what it has cost. Staff is becoming more expensive and increasingly difficult to find, whereas a machine works efficiently from morning until night."
For more information:
Eric Moerdijk
Monie Nieuwdorp
Hertenweg 61
4455 TK Nieuwdorp
+31 (0)113 612845
[email protected]
www.monie.nl
