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Tight onion supply keeps pricing strong

The supply of onions is tight, especially so on red and white onions. "Mexico has started, which has relieved the pressure a bit. Supply should be better once Texas starts, which should be next week on yellows. Reds and whites should start in Texas mid-July," says Christine Lindner with Alsum Farms.

Overall, the supply of onions is down substantially from last year on all colors, especially on whites, though reds are getting tighter as well. This is due to imports, such as Mexico and Canada, buying more than usual in the last three to four months.

In Wisconsin, where Alsum Farms & Produce is located, its marketing season will end one to two months early this year on yellows. "Reds wrapped up a few weeks ago. Wisconsin started on time, but the pressure from the tight supply out West caused our supply to move fast," says Lindner. "Our red and yellow crop was also bigger than usual, causing the popular large/medium onion size to move faster than usual."

© Alsum Farms

Other growing regions
While yellows are still coming from Wisconsin, reds are coming out of Washington and Oregon, and whites out of those two states as well as Mexico. Conditions in these regions have been decent. Mexico has had water shortages, meaning stocks will be smaller from this region, but the crop is good quality. The East Coast is also producing onions.

Meanwhile, the demand for onions is strong and for Alsum Farms & Produce, particularly so for large/medium yellow onions in consumer packs. "Out West continues to be the main factor driving up our demand," adds Lindner.

As for prices, they continue to rise, but that has slowed in the last two weeks. "Onion prices are certainly a lot higher than a year ago. We haven't had an onion market like this in a very long time," says Lindner, adding that she sees prices starting to ease up a little as Texas onions start up this month. "Prices will be higher than last year but should lower $3-$5 per 50-pound across all colors."

In turn, that's been the biggest challenge this season–finding onions at a good price with good quality. "Growers know the market and will charge extreme prices, even when quality is suspect," says Lindner.

For more information:
Christine Lindner
Alsum Farms & Produce
Tel: +1 (920) 348-6774
[email protected]
www.alsum.com

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