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Netherlands: Onion market ready for new season

Things are always on the move on the onion market. The sudden upsurge experienced in May ground to a halt just a few weeks later. Several annual fairs took a loss and labelled the general mood as ‘insipid’. Prices hover around 4 cents, just above the minimum. Tons of unsold onions are now headed to installations in Germany, used for processing fermented crop. All in all, people are cutting their losses and start focussing on the coming harvest.

Still, in spite of disappointing demands and low prices, the year isn’t a total loss. The majority of the export so far, was in fact in line with the 2005-2006, 2008-2009, 2010-2011 seasons. Respectively 850,000, 880,000 and 860,000 tons was shipped overseas. This season, the number will probably end up in the 860,000 ton region. A sluggish demand from Russia and Eastern European countries was well compensated by orders from Brazil, Libya, Indonesia and Columbia. These four countries alone constituted over 12% of the total export.

If these countries persist as steady consumers remains to be seen: fluctuating price levels could be of influence in the long run. But there are other markets still to be explored. The United Arab Emirates appear promising, so do relatively pristine markets in Asia and the Middle East. Countries like Singapore, Thailand, Hong Kong, Taiwan, even Pakistan and Qatar make a notable appearance on the list of upcoming destinations. Of special note was a sturdy demand from Israel, taking in 6,000 tons of Dutch onions this season alone.



New, unexplored markets bring interesting, one might even say challenging questions. With Libya as a potential new client (not to say exciting, as the country is the world’s largest consumer of onions), exporters will have to deal with unexpected cultural ramifications. What effect will the Ramadan have on the onion trade? Will it drop, even go to a complete standstill? Will the old onions still be suitable for export, or will North-African consumers have to wait for a new crop? Interesting issues indeed, and only Time will tell.