After weeks of high export volumes, the onion market has quietened somewhat since last week. "Exports are no longer in fifth or sixth gear," says Tim van Haandel of Mulder Onions. "It remains difficult to pinpoint exactly why, but some markets are oversupplied. Large volumes have been shipped to destinations such as Senegal, Côte d'Ivoire, and Mali in recent weeks, and the indications are that there is quite a lot of product on those markets."
© Mulder Onions
"From October onwards, prices were rising slightly, but since last week, you can see a downward trend again. Everyone had hoped that we would be able to maintain that slight increase a bit longer, but it proved to be a thin thread. A week with weaker demand has an immediate impact on prices," Tim continues. "Bale prices for medium sizes are now between 22 and 23 cents. Large onions are being sold to the UK for 23 cents and overseas markets for 24 cents, and the price for triplets is just below that of medium grading."
"For now, I am not worried about the season, but ideally, we need to be exporting 40,000 tonnes per week through the end of the year. Looking at the most recent export figures, Senegal and the Ivory Coast already account for half of the total exports. I hope the market picks up next week and that we can keep volumes moving."
"December is not an ideal month for exports within Europe, as many people will bridge the holiday period. January will show how long demand from Africa will last. What may work in our favour is that Ramadan falls early this year. Another positive note is the increased demand for lower-quality products from Poland."
For more information:
Tim van Haandel
Mulder Onions
+31 45 5678706
[email protected]
www.mulder-onions.com
