"At this time of year, we usually see full export months, but right now an unusually large volume of onions has already been shipped," observes Maarten van Damme of Dacomex. "We are currently in a slightly rising market, both on the buying and selling side, and you can clearly feel that in the demand. In a declining market, buyers tend to be very cautious. Now it's the opposite, they prefer to order today rather than tomorrow."
"Prices are relatively low after several years of high onion prices. That's why it's great that we can put the Netherlands back on the map. We needed that too," Maarten continues. "It's good that farmers, provided they have a reasonable yield, can now just about cover their production costs. At the beginning of the season, that wasn't the case, but now we're at a level where it's manageable. This way, it benefits the farmer, it benefits the processor, and we can show the world that we can supply high-quality onions at reasonable prices."
Bale prices are currently around 21–22 cents for medium sizes and 22+ cents for 60–80. "Africa is indeed the main market for large volumes. Beyond that, there aren't many specific countries receiving major exports. The Far East is very variable, with high volumes one week and lower the next; it's hard to predict. We are sending more to the Far East than last year, but given the relatively low prices at the start of the season, I expected exports to be much higher," says Maarten.
In terms of quality, Maarten describes the onions as mixed. "Fusarium is present in all regions, even in lots you wouldn't expect, such as those on sandy soils. What impact this will have on supply is difficult to estimate at the moment, but it could put some pressure on onions with a shorter shelf life. Overall, though, we're receiving good quality, perfectly fine for processing."
"I expect good demand in November; we actually see that every year. Whether prices will rise further, I can't say. A lot of products are going to the same markets right now. If those markets become saturated, local prices may rise, but if that doesn't happen, price increases here could stagnate. For now, though, we're seeing a slight upward trend."
For more information:
Maarten van Damme
Dacomex
Tel: +31 (0)166 662 550
[email protected]
www.dacomex.nl
