© WDK Onions
The onion market is currently seeking firmness and stability, observes Mike de Koster of WDK Onions. "The season started off very expensive and has therefore seen a sharp drop in recent weeks. Normally, prices would fall by just a few cents a week, but now they have dropped by 10 cents or more. This decline was too rapid to maintain calm in the market, resulting in nervous customers holding off and waiting a week before placing orders."
"Since the entire season began two weeks earlier, supply on the market is high. This is currently causing the imbalance between supply and demand. However, I am finally seeing demand pick up a little now, so I do expect some more sales next week. But supply remains abundant. We all have to get through the large volume of onion sets. Winter onion and onion set yields are reasonably good on average, though results are often either very good or very poor, with little in between. Particularly in the early segment, kilo yields are excellent," the packer continues. "I think the quality is good so far. You hear occasional reports of white rot, but I haven't seen any myself yet."
Asked what he expects from the seeding onions, Mike replies, "Right now, we're still at a point where it could go either way. It's already difficult to put a price on onions today, I can't even say for next week, let alone two months from now! Everyone is currently tied to high contract prices, which is putting pressure on graders here and there. Given the cost price for both growers and graders, prices will need to stabilise. One thing that can happen with a low price is that farmers become more inclined to store their onions, and if onions stay off the market, the situation can quickly turn around."
Although WDK Onions is less active in red onions, Mike cannot imagine a major market reaction to the 35% acreage expansion. The outlook for yellow onions is also uncertain. "We'll see what the future brings."
For more information:
Mike de Koster
WDK Onions
Langeweegje 39
4434 NC Kwadendamme (NL)
Tel: +31(0)113 644270
[email protected]
www.wdk-onions.nl
