More and more alternatives for Dutch onions within Europe
The onion market has currently reached a point at which demand is no longer sufficient to provide…The onion market has currently reached a point at which demand is no longer sufficient to provide work for all sorters. “Expectation is that demand will only decrease more in the coming weeks. Within Europe there are more and more alternatives, which will cause demand for Dutch onions to cease, especially from southern European countries,” says Martijn van Damme of Dacomex.
“Of course some demand will remain from the northwestern part of Europe, to bridge the gap between now and the new season. Conditions are similar outside of Europe. Destinations such as South America are gradually switching to import from new harvest, such as Spanish onions. Additionally, Africa in general has sufficient supply from local cultivation. Perhaps we might still ship some before the end of Ramadan, but that depends on quality and what sort of effect the decreasing demand will have on the bale price,” Van Damme continues.
“In any case, the mood is very reserved. Many sorters have had wrong expectations of the past quarter, and have been working with purchases too expensive in general, I think. Besides, except for slight hail damages, the growth of the new harvest is doing well. If the circumstances remain favourable, we can count on a particularly large harvest for the coming season.”
“If prices drop far enough, there will probably be some opportunities to compete with local product in Africa. In addition, a relatively large amount of onions is still available for this time of year. Qualitatively, we will have to consider which batches are still suitable for export, but it is certain that we have sufficient amounts left to hold out until the end of the season,” Van Damme says.