ru grows considerable quantities of yellow onions, though very little quantities are consumed on the domestic market - Peruvians prefer red onions. The bulk of the yellow onions are grown for commercialisation in export markets.Mario Arias, Peru based Export Manager with Damco, global logistics and supply chain management provider, says that, of around 3,000 containers annually exported, 80% will end up in the US, 10-12% in Europe and the rest to Central America and Colombia. Journey times vary, depending on the ports the onions are being shipped to and the shipping line used. To the West Coast of the US the journey from Peru usually takes between 12 and 17 days, to the port of Savannah. To Port Elisabeth in the East 12-14 days and 18-23 days to Europe. The busiest European ports for the trade are the Spanish port of Valencia and Rotterdam.
Thankfully the cargo in question is hardy enough to withstand long journey, as Mario says, "Ordinary reefer shipping, with humidity control and air exchange is all that is required. Onions are much hardier than say, asparagus or avocado."
Damco handles 85% of the Peruvian onion export trade. Mario Explains the service, saying, "In the beginning Damco handled only the land side services, but the service has been upgraded. Now we offer an end to end service, including logistics operations, competitive ocean freight rates, customs brokerage and terminal and port services.
"Furthermore the whole process is visible and traceable and there are additional services, such as distribution and supply chain management."
M
ario says the onion trade with the US is very dependant on the weather in the US and the resultant fluctuations in their domestic crop. "The US season is earlier than the Peruvian one, but if the Americans have a good yield they can put the excess production into storage and sell it later on."If this happens then the prices come down."
This is not the case this year, however. "This year we have some problems with the production, as a result of the weather," Mario says. "We expect to be down in volume by 20-25%. The US has also had lower volumes, but demand is very high."
What this means of course, is higher than average prices. Mario says the average price is $16-$17 per box, and the break even price is $12 per box. This year he says, a box sells for $21-$22.
There's still some way to go before the record price is reached again though. "That was in 2007," he says. "prices went as high as $28 per box."
Mario says, though, that whatever fluctuation the market experiences, the onion trade is a secure one.
"I think onions from Peru will remain a good business. It is a commodity, with an inelastic demand as well as an essential item for many people."
For more information:
Mario Arias
Damco
Tel: +51 1 6160313
Mob: +51 1 998142943
[email protected]
www.damco.com