The onion market is facing multiple challenges this season. "Especially for red onions, I see few positives; stocks are still very large. For yellow onions, I see a slightly more positive long-term outlook. However, the quality is disappointing. I expect that for both red and yellow onions, there will be very few good-quality lots left by the end of the season," observes Machiel Boons of Uienradar.
© Uienradar
According to the commissioner, onion prices have now stabilised somewhat. "I had expected a bit more momentum this week, but demand has eased again. Perhaps processors have been covering their needs. You can clearly see that resistance among farmers has weakened. Even growers with good-quality onions now want to clear their stocks. We are still trading, but mainly the 'premium lots'. There are quite a few countries in the market, but they are all looking for top-quality products."
"I did another tour of the polder this week, but it was not easy to find suitable lots. There is plenty of supply, but not of good, large-sized onions. Even the lots I previously classified as 'good' are now starting to deteriorate. On sandy soils, issues with poor-quality onions have been present for some time, and now I am also seeing more onions from clay soils starting to break down. There will be a few lots left in May that can meet the high standards required by current buyers," Machiel continues.
Machiel started as an independent onion commissioner on 1 June 2024 and, with Uienradar, has built a network of four buying partners across the country who know both the regions and the growers well. "It is not feasible to visit all growers ourselves, and this approach allows us to maintain regional coverage. As a commission agent, you also need sufficient turnover to sustain the business. Nowadays, many commission agents are becoming more like traders, filling positions, but I still aim to operate as a pure intermediary between growers, processors, and exporters, although that requires a certain volume."
Through a WhatsApp service, Uienradar keeps growers directly informed of market developments. "I share market updates, as well as specific requests when we are looking for certain sizes or colours. During the growing season, I also provide updates on crop development," Machiel explains. The combination of digital communication and personal contact keeps growers well informed. "We continuously monitor how the market is evolving, and with that knowledge, we inform growers, sometimes anonymously via digital channels, but also directly on-site. Transparency should form the basis of any purchase agreement."
"This is a difficult season for the entire onion sector, but we have seen other years as well. The nature of the onion trade is that within a few months, the global situation can change completely. A considerable area has been sown with onions, particularly in our polders, but it remains to be seen how the new season will develop."
For more information:
Machiel Boons
Uienradar
Lehmkuhlstraat 18
8266 DH Kampen
Tel: +31 (0) 6 41669970
[email protected]
www.uienradar.com
