At this time, the market has low stocks of onions, good demand and lower supply available due to the heat waves and storms registered last spring. The significant shortage of large calibres has led to prices climbing to high levels and these are expected to remain stable until the end of the storage season.
Large calibre onions stand at about 60 cents per kilo and the medium sizes range between 35 and 45 cents per kilo. The biggest disadvantage faced by marketers right now is the high prices of onions at origin, which oscillate between 45 and 50 cents per kilo for the larger sizes, and considering the prices paid on the market, the profit margins are not very wide. Therefore, companies with access to their own onions are in a very advantageous position.
While Europe remains the main market for Spanish onions, especially the UK and Germany, demand from third countries is still higher than last year, as is the case of Brazil. Spain is among the few countries that can supply calibres higher than 90 and 100.
As regards the product's quality, it is generally being acceptable, according to exporters, although due to the same adverse weather conditions that reduced yields in the field, there have been more withdrawals of items in bad condition.
The unusually high temperatures affect the onions currently in storage, as they accelerate the onset of diseases and reduce their shelf life. Moreover, the heat is also stimulating the growth of the onions planted and programmed to be harvested in April, so if these conditions continue, the harvest could arrive earlier, depending also on what happens in February.