Dry Conditions in Netherlands Hinders Onion Production

As the Netherlands is the largest onion supplier globally, onion production occupies a special place in the agricultural sector of the Netherlands. In 2021, the Netherlands exported 1.9M mt of onions, and the market share of onion exports was 20.9%. Onion production increased by 11.76% YoY in 2021. In addition to the most modern farming techniques used by Dutch farmers in production, it is sometimes inevitable to avoid unfavorable climatic conditions. After snow and rain in April 2022 came heat waves without precipitation in May, causing crust to form in many onion fields in the Northern part of the Netherland.

The formation of bark prevents the emergence of onions. If there is no uniform germination, there will be problems in the further development of the plant, ultimately reducing the overall yield. Therefore, farmers must apply additional measures in the form of subsequent machine operations for breaking the bark, making production more expensive. Although the land and climate are favorable for growing onions in the Netherlands, this does not mean the season is without problems. With its high soil fertility, agriculture in the Netherlands is one of the most productive in the world. The increased soil fertility originates from the sea and rivers. In the central part of the Netherlands, soil with river deposits dominates. The primary soil type here is river clay. From this central area, sandy soils occur.

Source: Tridge

In 2021, Germany imported 144,647 mt of onions from the Netherlands, a 34.77% YoY increase. The Ivory Coast imported slightly less than Germany, a total of 142,430 mt of onions, a 10.05% YoY growth in 2021. In 2022, EU countries, as well as African countries, were important trade partners of the Netherlands. Problems for traders were the increase in the price of overseas transport and the lack of containers. The current convenience is the increased demand from Eastern Europe, which to some extent compensates for the lack of ​​overseas trade. According to Tridge’s price data, prices vary depending on the variety and quality, and the wholesale price of red onion is USD 0.32/kg while the yellow onion is USD 0.17/kg.

Traders are still satisfied with the 2022 season due to the 1M mt of onions exported by the end of March, with good quality yellow onions in stock. The outcome for the rest of the season is uncertain. With weather conditions influencing overall yield and lower acreage under onions for 2022/23, traders hope this will diminish the impact price later in the year.