It is mid-March and the European onion stocks are getting low. The imbalance between supply and demand is increasing. “Our stock has dropped and the offer is very low on the European market, and even at the global level. Many countries are currently in production deficit and the product is highly sought after,” explains Patrick Flin, director of the company Paris Ail. “As far as Europe is concerned, we are waiting for the imports from the southern hemisphere, which have slowly started, but are not enough to compensate for the European shortage. Those importations will increase in the coming weeks, but the current deficit is such that prices will remain very high at the global level.”
Regarding the stocks, Patrick thinks that those from the Netherlands are still relatively important compared to other European countries, “because it simply is their policy to extend the season of a product as much as possible. In France, we have some stock, which is less important than in the Netherlands, while Spain still has a lot of stock.”
High prices
With this lack of supply, prices are obviously particularly high. “On the European market, prices are around 0.60-0.65 euro/kilo [0.31-0.33 USD/lb] depending on the origins and calibers. At the import level, prices are around 0.70-0.80 euro/kilo [0.36-0.41 USD/lb]. And this situation will last for another 5 to 6 weeks, when the new European harvest will appear and act as a buffer. Prices will still be high, however, because of the current shortage of products.”
“The market is complicated, supplies are low. We have been in similar situations in the past with high prices and a product deficit, but selling onions at such prices is quite unusual.”
About Paris Ail
Paris Ail is a traditional company specialized in condiments (garlic, onion, shallot) and potatoes, located on the wholesale market of Rungis. It markets about 18,000 tons of products each year. Paris Ail is part of a group bringing together three companies, managed by Patrick Flin and his partner Thierry Planes. The two other structures are Royal Saveurs in the Gers, focused on garlic production, storage, packaging and shipping, and Le Vili located in Roscoff, Brittany.
For more information:
Patrick Flin
Paris Ail
26 Avenue de Lorraine
CP 70112
94512 Rungis Cedex, France
Phone: +33 156 702 702
flin.patrick@gmail.com