"The current state of affairs in the onion market, business and earning models-wise, is entirely unrealistic," says Tjerk Nagel of Konaxx Onions in the Netherlands. "Everyone can make good money on the trade market, but it's become a case of Russian roulette."
"Before, when price increases were expected, growers would jointly negotiate for storage fees for a certain period. That doesn't seem to be happening anymore. Growers are getting €0.50 for Janaury, while bale prices are much lower. There's so much money involved; it's scary," Tjerk admits.
"Africa's still on the market, and Senegal will still take a shipment in the first week of January. But, destinations are dropping away rapidly. In 2018, prices were also high, but that was more unexpected; now, the rest of the world's reacting far faster. The pricier Dutch onions get, the more alternatives emerge. We're already getting offers for onions from Egypt, Kirgistan, and other destinations in early spring."
"I think we've reached the peak and that prices, as well as weekly export quantities, will decline from January to March. After that, something may happen in the post-season. I'm certainly not a pessimist, but the way the market's being driven up is beyond all normal business operations. If yields are better than expected and people from elsewhere decide to export just a little more to Europe, the supply will look very different," says Tjerk.
The packer also has his doubts about quality. "Some batches are deteriorating, and the tares are steadily increasing, no matter from where we load." The fully automatic onion grading machine, the grading and packing station commissioned last summer, is working well. "The start-up was difficult, but we're well satisfied now," concludes Tjerk.
For more information:
Tjerk Nagel
Konaxx Onions
32 Kadal
9079 KW, Sint Jacobiparochie, NL
Tel: +31 (0) 518 491 255
Email: info@konaxx.nl
Website: www.konaxx.nl