W45: Weekly Onion Update

Austria

Varying Onion Yields and High Export and Producer Prices in Lower Austria (Nov 10)

The summer onion harvest increased in Austria in September 2022. In addition, the yields on the irrigated fields fell short of expectations. Overall, the 2022 harvest year is characterized by large regional differences in terms of harvest, as with other field vegetables and potatoes. The onions are small to medium in size and will harm the total harvest volume. In the wake of the high international export prices, the producer price for loose onions, sorted in crates, has also risen successfully in Niederösterreich. With an average of USD 32.89/100kg (EUR 32.00/100kg), this is 65% higher than in 2021. The peak has probably reached for the time being. However, the dry year of 2019 has shown us that it can be even higher. Then the grower price went up by up to 70% in the middle of the year.

Brazil

Ituporanga Starts Onion Harvest at a High Price; Demand Is Goodin Brazil (Nov 11)

The onion crop in the region of Ituporanga (SC), which is starting, presented a significant demand for this W45. Given the favorable pricing, some farmers are advancing the harvest of the early ones. So, bulbs are being sold in green, and others are in bloom due to the low temperatures in W44. For the time being, sales are being carried out only in the region, and prices had a very high average, recording the highest value in the historical series since 2000: USD 1.08/kg (BRL 5.75/kg). Due to the still low supply and high demand, “flowered” onions are being sold for a lower price, around USD 0.47/kg (BRL 2.50/kg) – due to their lower market attractiveness.

Costa Rica

Window of Import Available for Yellow Onion in Costa Rica (Nov 10)

After six months of continuous rain in the upper and lower Cartago region, where most of the onion production is located in Costa Rica, the Ministry of Agriculture and PROCOMER opened a new import window for the yellow onion to cover the unfulfilled demand in the local market. Allowing a window of import for about three months. This import window implies that regular importers will be assigned a contingent of metric tons they can import without paying any duties as long as the product complies with phytosanitary regulations.

Europe

Small European Onion Harvest Offers Market Opportunities (Nov 10)

The European onion area is expected to decrease by 9% to about 104,600 hectares. The cultivation area for onions there this season is the lowest of the past eight years. The export volume for India appears to be higher than last year, but less from South America. Brazil mainly buys onions from Argentina and Chile, and there is less demand for onions from Brazil. The onion market, at least for Europe, with more demand than supply, has so far been translated into average quotations for medium-sized onions of USD 27.54/100kg (EUR 26.8/100kg) at the North and Central Netherlands Agricultural Fair (LNCN). This is the indication price for onions delivered dry from the shed. In 2021, up to and including W45, the average of this quotation amounted to USD 11.61/100kg (EUR 11.3/100kg).

Ghana

Threats of Onion Shortage in Ghana With Christmas (Nov 11)

Ghana has been warned that there could be a shortage of onions over Christmas as more than 90% of traders have withdrawn from trade. This is mainly due to the weaker Ghanaian currency against the dollar. This is exacerbated by the smaller quantities of onions in the store and the high excise duties and fuel costs that are pushing traders out of the market.

Italy

Italian Processing Companies Are Affected by the Low Supply and High Prices of Yellow Onion (Nov 11)

The lack of yellow onion supply and subsequent price hikes in the whole northern hemisphere, from Europe to the United States, is 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 available calibers 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.

New Zealand

Tough Growing Season Drives Eye-Watering Onion Prices in New Zealand (Nov 12)

Onions are currently more expensive than usual due to a tough growing season and the increased price of fertilizer and diesel. One retailer says the humble brown onion has gone up 200%, and for red onion, it's even more expensive. Stats NZ figures released on Saturday showed fruit and veg prices had jumped 17% at this time last 2021.

Poland

The Rise in Prices for Vegetables and Fruits in Poland Is One of the Lowest in the World (Nov 7)

According to the Main Statistical Office (GUS), food prices in Poland have risen significantly. However, the smallest price increase was observed among vegetables and fruits (8.8%), with onion prices falling by 6.2%.

South Africa

Prices for South African Onions Are Smashing Records (Nov 8)

Onions and potatoes have traded places since 2021 when potatoes shone and onion prices slumped. Potato prices are very low while onions are minting it: the price for a 10kg bag of onions is triple that of last year, says Kobus Pienaar of GROW Port Natal at the Durban municipal market. The onion market is transitioning from Limpopo to the Northern Cape and Western Free State, and its expected prices will remain buoyant until Christmas, traditionally a strong onion sales period. Lower available volumes mean that onions are selling for as much as R115 - USD 6.58 (EUR6.4) for a 10kg bag, or over R10 - USD 0.51 (EUR 0.5) per kilogram in central South Africa. On the coast, transport costs push up the price of a 10kg bag even higher between R6 and R10.

Turkey

Turkish Red Onion Prices Increased by 16% Wow Due to High Demand (Nov 11)

Purchase tenders for Turkish onions are open in many countries, such as Bangladesh, or in countries with reduced import taxes, such as Costa Rica, which had a long rainy season. There is high demand for Turkish onions from neighboring countries and Europe, which has resulted in increased export prices and stricter payment terms. For red onions, prices increase by 16% WoW, from USD 355/MT in W44 to USD 425/MT in W45.