"Before the Chinese New Year, the sales and pricing of Chinese onions were generally favorable. However, during the holiday, urgent purchase orders from the Philippines prompted onion processing factories to resume production earlier than expected, leading to a price rebound—surpassing even pre-holiday levels," said Mr. Jack Meng from Jining Futian Vegetables & Fruits Co., LTD.
"In late December, as the new season of Indian onions entered the market, many buyers shifted their orders to India, causing Chinese onion prices to drop by approximately 10-15%. However, the decline was less significant than in previous years. Overall, while onion prices in China from October to December 2024 were lower compared to the same period in 2023, the annual supply period has maintained relatively strong price levels."
"During the Chinese New Year, the market received time-sensitive orders from the Philippines, forcing Chinese factories to cut short their holiday break to fulfill them. The urgency of processing increased production costs, which in turn drove up selling prices. As a result, onion prices rose after the holiday instead of declining. These orders primarily targeted red onions, and this trade wave has nearly depleted the market's red onion stock, while yellow onions remain in ample supply."
"With the Philippines' purchasing plan now completed and red onion stocks exhausted, current prices are no longer reflective of broader market trends. At present, new onions from Yunnan have entered the market, with quality comparable to previous years. Initial prices are slightly higher than the same period last year, and current demand is primarily focused on domestic sales," Meng explained. Regarding market expectations, he noted that this is currently the off-season for Chinese onion exports, with price fluctuations largely dependent on developments in the Indian onion market.
Jining Futian Vegetables & Fruits Co., LTD. specializes in onion processing, storage, and export, catering to major markets in Southeast Asia, the Middle East, and Africa. The company also exports garlic.