Van der Lans International will receive its first overseas onions from New Zealand any time now. Last year's yellow onion shortage ensured a smooth transition to overseas onions. This year, there are more yellow onions but fewer white and red ones. This Dutch company's Andrea Candiano takes stock.
Onionfield in Hawkes Bay (New Zealand)
"The recent trend has been that European clients continue for longer and longer with local products, only switching to overseas ones when local onions run out, or their quality deteriorates. Last year was an exception because the harvest in Europe was disappointing. We could thus immediately start with the overseas onions," Andrea said in mid-February.
"This year, however, Europe seems to have enough yellow onions. Still, there are more quality problems in the Netherlands this year, partly because of Fusarium. So the tare percentage is slightly higher than normal. It will become clear in late March whether we'll begin with larger volumes in early or late April."
The first New Zealand onions will soon arrive in limited quantities. "We can soon supply customers interested in premium quality onions. This year's problem, though, is Europe's ample yellow onion supply. The Netherlands alone has a harvest of 1.3 million tons, and exports aren't going that well. Total exports are about 15% behind and prices are quite high," Andrea explains.
"That's usually great for us because then there's a smoother transition to overseas onions. But this year, yellow onions' high prices are slowing sales. With Africa no longer leading the way, the European market should take over, but due to lower prices in surrounding countries, that's not happening. Exports were difficult in the first six weeks of 2024. Hopefully, Dutch yellow onion exports will pick up in the next while."
Import duties
"New Zealand has a good crop this year, certainly better than last year when the flooding caused considerable damage. However, there are logistical challenges. For example, the situation in the Red Sea adds costs and two weeks to transit times. Some ships use the Panama Canal, but that supply is also delayed. Import duties are another hot topic. Those dropped to zero in the United Kingdom last year," says Candiano.
"That was because of the free trade agreement. This year, the rest of Europe should follow. That's already been settled in Europe; it just has to be officially ratified in New Zealand. We hope that will happen before the second quarter because dropping that 9.6% import duty will substantially improve New Zealand onions' starting position."
Besides New Zealand, Van der Lans imports onions from Australia, Chile, Egypt, and South Africa from March to July. "The first South African product has been loaded, and we'll load the Chilean ones soon," Andrea continues. Red and white onion market conditions are very favorable. "In the Netherlands, there are as much as 25% less red onions, and prices are considerably higher than last year. So red onions from New Zealand and Chile are definitely going to arrive on a good market."
"White onions are experiencing a perfect storm this year. Normally, they come from Mexico to Europe. But those onions can make much higher prices in the United States this year, so little or none is coming to Europe. India has an export ban until March 31, and the Italian and Spanish seasons finish earlier. That leaves Australia, so those onions, too, are arriving at a good market, though those imports are experiencing considerable logistical challenges as well," Andrea points out.
Germany, the United Kingdom, Italy, France, and Spain have always been Van der Lans International's top overseas onion sales markets. "We made good deals with our customers at the Berlin fair. There shouldn't be any quality issues this year, and we hope our suppliers and customers have a good season."
Andrea does not expect more competition in overseas onion imports. "That market's been in a few knowledgeable importers' hands for years. In an expensive year like last year, speculators wanting to venture into importing always emerge. But it's a sector unto its own. You must understand the product and the market and have the right sales channels. You don't just build that in just one year," he concludes.
Andrea Candiano
[email protected]
Van der Lans International
Gerrit van der Veenlaan 18
3743 DN Baarn
Tel: 035 6422622
www.vanderlans.com
