Based on the export figures, onion processors are currently operating only half a working week. "That is not much different from other years at this time, but we are coming off substantial volumes, and that slowdown is being felt sharply," says Eric Moerdijk of grading and packing station Monie in Nieuwdorp.
"But the situation is what it is, and in my view, lowering the price further will not generate additional sales. Prices in most other European countries are still considerably lower. If we, as the Netherlands, reduce our price, those countries often follow automatically. That does not create many extra sales. It may actually be better for local markets to empty first, so that in the longer term it could create opportunities for the Netherlands."
"The price for coarse grades and supers remains fairly stable, but medium grades and triplets are under heavy pressure. You often see that when the price of fine grades falls, coarse grades follow automatically. If you are not careful, you end up selling only coarse grades and supers." An upturn could occur if an unexpected destination enters the market, or if stock becomes limited due to quality issues, Eric expects. "But by the time that happens, you are already looking at May or June. You can also see that with the rise of optical graders, more lower-quality lots are being processed and packed, meaning that, overall, even more onions are available on the market."
"The quality is not disappointing at the moment, but you need to stay alert. There are quite a few lower-quality lots on the market, although there is still plenty of choice. At this time of year, and in a market under pressure, it is difficult to market lots with a quality risk. As the Netherlands, we have to distinguish ourselves by quality. However, growers with good, coarse lots are reluctant to sell. Red onions are not escaping the downturn either. We simply have to make the best of the situation, but given the sorting capacity, two and a half days a week is sufficient for now," Eric concludes.
For more information:
Eric Moerdijk
Monie Nieuwdorp
Hertenweg 61
4455 TK Nieuwdorp
+31 (0) 113 612845
[email protected]
www.monie.nl
