Protectionism and climate change - these were the most important topics at the Onion Theme Day. It was recently held in Dronten, the Netherlands. Inge Ribbens of GroentenFruit Huis and Wiskerke Onions Director, Chayenne Wiskerke, both agree. Dutch onions are the best in the world. How can the country maintain this position?
Chayenne Wiskerke speaking about the effect of climate change.
With cooperation and prevention, the climate can offer chances for Dutch onions
Chayenne showed the audience which trends the onion sector will face in the coming years. She did this using an incisive analysis. This year, for the first time, Dutch onions could be exported to India. There, severe monsoon rains destroyed crops. "In December 2019, onion shortages in India had reached 44%. Prices had also risen by 642%,” she explained. "That country is one of the largest exporters in the world. That suddenly stopped."
According to Chayenne, there is an increased chance of things going awry more often in the future. "Look at how the climate is going to change in the coming years. Some regions will experience greater droughts. Others will have increased rainfall. In India, it will rain more while Africa will become drier. At the same time, those areas' populations are set to grow dramatically."
"Onions are an important staple in those countries' dishes. This creates opportunities for Dutch onions. The Netherlands has several significant advantages. Dutch onions are available on the market year-round. That is due to their excellent storage capabilities and good quality. The strong Dutch logistics sector is also beneficial.”
But Chayenne pointed out the threats too. The Netherlands will have fewer issues with more rainfall or extreme drought in the future. But, the country is not immune to these conditions. Compare, for example, the 2017 and 2019 seasons to that of 2018. That was an extremely dry season. Then there is the price of Dutch onions. Political interference, the use of fewer pesticides, and the necessary certification all play a role in this.
These are all developments to keep in mind. With prevention, the Netherlands can, however, retain its future position. Prevention includes developing new varieties, drainage, and storage developments. The onions' quality must be guaranteed too. And there must be cooperation between growers and processors. "After all, nothing beats a Dutch onion."
Inge Ribbens of GroentenFruit Huis.
Protectionism is a major threat
One of the threats indicated in political interference. This is actually a huge compliment for Dutch onions. Setting up trade barriers seems to be a way for countries' to protect their markets. Exports to West Africa are increasing, Chayenne, however, admits in her speech that the export season is becoming increasingly shorter. This is a way for countries in that region to protect their markets.
Inge Ribbens added several examples of countries that want to keep Dutch onions out. "Markets such as Russia have been closed for a while now. We are also struggling to get a foothold in China." Other countries, like Panama and Indonesia, have also recently proved challenging. "The market in Panama was closed to us in 2006/2007. But, after diplomatic negotiations, it re-opened in 2013."
"Unrest, however, developed among the local growers. We have now seen the door to Panama starting to close again. Additional measures have been implemented for Dutch onions. These include the '120-day rule'. When Dutch onions reach the Panamanian market, they must remain there for 120 days. But that does not apply to other exporting countries."
Indonesia's door is also slowly closing. For instance, Dutch shallots are banned to protect this product's local market. However, the agricultural sector there seems to fall victim to political disputes fairly easily. That is also the case in Russia. The EU sanctioned Indonesian palm oil. It appears as if Indonesia, therefore, wants to ban Dutch onions as a countermeasure.
Inge fears these issues will only increase in the future. What with Brexit, the US-China trade war, and the local-for-local trend. Only through diplomacy can solutions be found to protect free trade.