The onion season has turned out completely differently than anyone had expected, according to Lindert Moerdijk of MSP Onions. "Everyone thought there would be enough onions, but it turned out there was room for a price increase. Demand has simply been getting better and better in Q1 and Q2. Many processors now consider the grower price too high to continue. With prices between 45 and 50 cents, it is virtually impossible to match the current bale price."
© MSP Onions
Demand falling every week
"Demand will now decline week by week, as will the number of active processors. But that doesn't necessarily mean prices will fall, because supply is also shrinking. We now have to wait and see what processors or speculators will do with the onions they bought at high prices. If those come onto the market, will there still be interest, or will most players already have stepped back and be waiting for the new season?"
"The market is now fluctuating daily. Countries that had completely disappeared as buyers are suddenly facing shortages due to bad weather. It's a fascinating dynamic at the most difficult time of the year," he says.
"It's encouraging to see that European retailers prefer Dutch onions over, for example, New Zealand onions. That makes sense, given the long distance the latter have to travel and the fact that the difference in quality is minor, perhaps just in the skin finish. The price increases in the second half of the season will hopefully prompt growers to invest in better storage facilities. The longer the season runs at full speed, the better the chances for good market prices. The strong volumes in Q1 and Q2 will likely become a trend if European retailers continue to show this preference."
Onion skins and long tails
© MSP Onions"What stands out this year is that maintaining top quality has been more difficult for processors than in previous years. Due to the unusual growing season, nearly all batches are losing their skins too easily, often even after sorting. The darker batches are less affected, but customers often find them too dark. Another noticeable issue is that, because of downy mildew, many batches have longer tails than usual. All processors have struggled with this."
"For us, it's been a very good season with an unexpectedly high number of orders," Moerdijk continues. "This year, we programmed extra creative sorting rules into the machine, combining the best of both worlds and leaving customers extremely satisfied. European processors know where to find MSP Onions for the highest quality, helping them meet the high standards of European retailers."
"We aim to continue processing the old crop through June. Thanks to the optical line, we can still guarantee quality. Despite the drought, the new crop is developing well. Winter onions and planted onions are often grown on plots with water access, so we expect to be able to sell the first new onions at the beginning of July."
© MSP Onions
Platinum project
Major steps are also being taken in the Platinum project. "It's a fantastic journey to make Platinum even better than MSP Gold. It's a real onion challenge that gives our team a lot of energy. Speed, efficiency, and product-friendliness—combined with significantly lower maintenance costs—should ultimately make the difference and put the Netherlands back at the top of the onion world. Without the experience of MSP Gold, this process would have been impossible, something we realise every day."
"It's so exciting to see that efficiency and sustainability go hand in hand in projects like this," Moerdijk continues. "In Platinum, MSP will use a taxi model where Eqontrol determines how fast the internal logistics will move and how many objects are assigned to a zone based on requested capacity. This reduces maintenance, lowers energy costs, and allows for peak production volumes. These are inspiring projects to keep developing. For MSP Platinum, the motto is: When better is possible, good is not good enough!"
For more information:
Lindert Moerdijk
MSP Onions
Hertenweg 32a
4455 TL Nieuwdorp
[email protected]
www.msp-onions.com
