AMSTERDAM: The onion market in the United States is struggling with shortages, which are pushing prices up. Because of the bad weather, there has been a lower harvest and there are fewer stocks. Mexico also has a lower supply and in large parts of Europe the harvest volumes are smaller. In Spain, this, combined with the warm weather, has resulted in high prices and low stocks. Last year, the Netherlands reached a record export volume.
The country is a leader in the global market. In South America, the Peruvian sweet onion season is coming to an end. Growers are happy with the results. In Australia, imported onions are making the lives of growers tough, as they are putting pressure on prices.
The year has begun with a good start to the onion season. The market is characterised by good demand and a limited supply. Last year, the onions harvested were small, so there is currently a high demand for larger sizes. More onions were planted in 2015, although the extreme weather conditions have taken a toll on the harvest, especially for storage onions, which have suffered some quality problems.
As a result, prices are rising steadily. A trader says that there is a shortage of red and white onions, but prices for yellow onions are also on the rise. Yellow onions currently cost about 10 dollars, while at this time of the year the price usually ranges between 7 and 10 dollars. White onions cost between 26 and 28 dollars for a bag of 25 lbs (approximately 11 kg).
In a few weeks, the season will start with the new harvest from Mexico, followed by the U.S. states of Texas (in March) and Arizona and California (in May). The overlap between storage onions and the new harvest is not expected to disrupt the market.
