Netherlands - higher supply of spring onions leads to a decrease in the price of a bag.

Anyone driving through the southern part of the Netherlands will see that many onions planted from sets are now ready for harvesting. Other fields are already empty, and it is becoming clear that at least the onion yield this season is not a failure. The high moisture levels have created favorable growth conditions, resulting in high yields. Some producers are already nearing the end of their harvest, according to traders and classifiers, with the latter indicating that they had estimated there would be more large onions at this stage of the season. Quality is sometimes an issue, but on average, it does not differ from what is usually expected.

This situation affects the need to negotiate price agreements with growers, as pricing remains under pressure. Market prices in Goes also clearly reflected this in week 32. While in week 31, one could still earn 15 euros or slightly more per 100 kg of onions planted from sets, in the past week, it was 12 or 14 euros per 100 kg. Due to the hot weather expected in week 33, growers and sorters are rushing to deliver the onions on time. "To maintain quality, we do not want onions harvested in high temperatures to be present this week," says one of the sorters.

Following the "reset" from week 31, onion bag prices were also under pressure in week 32. However, the decline in these price levels was less than before, and a further sharp decline is not clear. The market's instability and uncertainty do not help with sales. In such a market, importers are literally and figuratively holding back on purchases, as onions may become cheaper at a later time. On average, according to DCA listings, bagged onion prices have dropped by a few euros to an average of 25-26 euros per 100 kg.

The supply of triplets is limited, but so is the demand. Depending on the destination, triplets often cross the border at a price significantly below 25 euros per 100 kg. With such bag prices, the fixed contracts and prices that sorters agreed upon with growers weeks ago are painful. Especially those contracts that were set well in advance around a price of 20 euros per 100 kg.

What will happen in the coming weeks?
Opinions among sorters and exporters are divided on when stability will prevail in the market. On one hand, exports to Africa continue to grow, and we had a "quite good week" in terms of sales in week 32. On the other hand, this week may be different as supply is also increasing. For example, in the past week, Senegal seemed to provide an export boost due to a ship sent there. However, for now, that ship will remain there, and the import boundary will be closed again, leaving the next few weeks without a country that has been a stable driver of Dutch onion exports. Other African countries are accepting a higher volume than before, and demand from Central America is also generating additional work. Europe remains relatively limited, with exceptions like Belgium. If demand holds in the coming weeks, the onion market will enter calmer waters.

At current bag prices, the Dutch onion sector is descending to a level where there is increasing and better competition in onion exports. In this context, new directions emerge, such as the Middle East, but also Asia, for example. However, it remains to be seen how far other exporting countries can go. But if better quality seed onions appear on the market soon, other destination markets will surely offer sales opportunities.

DCA Listings:

Bagged onions 35-50 mm: 24 euros/100 kg; (-9.4%);

Bagged onions 45/65 and 50/70 mm: 25.25 euros/100 kg; (-8.2%);

Bagged onions 60-80 mm: 26 euros/100 kg (-8.8%);

Bagged onions +80 mm: 28 euros/100 kg (-6.7%).

Market Listings:

Goes Market

Onions from sets 16 euros/100 kg (-13.5%);

Middemeer Market - no listings

Emmeloord Market - no listings