Italian Processing Companies Are Affected by the Low Supply and High Prices of Yellow Onion

The lack of yellow onion supply and subsequent price hikes in the whole northern hemisphere, from Europe to the United States, are heavily affecting processing companies that purchase this product. The Po River in Italy experienced the greatest drought in the last 70 years in 2022, which resulted in extremely low onion production, particularly for yellow onions. Many Italian suppliers are charging higher prices to achieve a reasonable profit since there is limited stock of onions in their warehouses around 30–50MT. The majority of the calibres that are available are too small for onion ring producers, resulting in a significant loss in the output of processed onion rings. The pasta sauce industry is also affected, with suppliers loading only a limited amount of peeled yellow onions because the high prices would have a significant impact on the final product prices.