South Africa's onion market is experiencing varied circumstances across its three primary producing regions: Northern Province (NP), Northern Cape (NC), and Western Cape (WC). The Northern Province experiences challenges, while Northern Cape and Western Cape anticipate stable conditions.
The NP typically supplies onions from April to October. In January, significant rainfall delayed and concentrated planting activities, resulting in a high volume of onions entering the market during July and August. This surplus exceeded demand and led to average prices dropping below ZAR50 (€2.40) for a 10kg bag on the wholesale market (according to AMT). Additionally, sun hours were down 20% compared to last year. The quality and yield of NP onions are lower than last season, affecting returns for producers. The short-day varieties grown in NP cannot be stored and must be marketed within domestic markets making them more susceptible to volatile prices.
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A field of Shinto (Enza Zaden) onions growing in Northern Cape.
In contrast, NC is expecting a more favorable season. The planting conditions were suitable and gentle weather have supported uniform crop development, and most fields are in good condition. NC onions will reach the market in early November in a mostly empty market. Industry analysts forecast a potential price recovery with the introduction of this crop.
In WC, water restrictions do not impact growers, and planting areas are consistent with those of the previous year. With adequate storage facilities, WC is able to supply onions over an extended period from January through July. However, projections for next year's market outcomes remain undetermined at this time.
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Weekly onion report.
Contact:
Bram van Staalduinen
Bahari Services
Tel: +31 650 258989
[email protected]
www.bahari-services.nl
