1. Weekly News

Japan

Osaka Trade Office Seeks Vietnamese Partners for Onion Exports to Japan

The Osaka Trade Office is actively seeking Vietnamese partners to produce and export onions, green onions, and frozen spinach to Japanese enterprises as alternatives to current suppliers from China. While Japan is a developed nation with advanced agriculture, it meets only about 45% of its domestic consumption needs, relying heavily on imports for agricultural products. Currently, just six main agricultural groups from Vietnam are exported to Japan, contributing to less than 2% of Vietnam's total export value.

Netherlands

Dutch Onion Exports Rebound In W48, Driven by West African Demand

Dutch onion exports rebounded in W48, exceeding 40 thousand metric tons (mt), driven by renewed demand from West Africa. Senegal more than doubled its imports to 10,826 mt, bringing its seasonal total to 117,008 mt, nearly matching last year despite delayed border openings. Ivory Coast also increased imports to 6,236 mt, pushing its seasonal total to 103,526 mt, over 30 thousand mt more than in 2023, thanks to improved affordability. This strong demand from Senegal and Ivory Coast underscores the resilience of Dutch onion exports, with competitive pricing playing a critical role in sustaining volumes.

Peru

Peruvian Onion Exports Surged in Nov-24

In Nov-24, Peru exported 40,617 mt of fresh onions, marking a 1% volume increase year-on-year (YoY) and a 58% YoY value increase, totaling USD 25.68 million. The United States (US) dominated as the primary market, absorbing 68% of exports, followed by Spain and Colombia. The General San Martín Port Terminal in Paracas was the key export hub. Year-to-date, Peruvian onion exports reached 283,863 mt and USD 131.69 million, surpassing 2023 figures due to better international prices and stable production.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W52 2023 to W52 2024)

Netherlands

In W52, Dutch onion prices decreased 12.50% month-on-month (MoM) and 68.18% YoY to USD 0.14 per kilogram (kg). This significant decline is primarily due to increased production in the 2024/25 marketing year (MY). The North-western European Potato Growers (NEPG) forecasted that regional potato production would surpass the 22.7 million metric tons (mmt) output from the 2023/24 season, driven by a 7% YoY increase in planted hectarage. This production boost led to a surplus in the market, exerting downward pressure on prices. Furthermore, favorable weather conditions during harvest improved storage prospects, further contributing to the abundant supply. Consequently, the increased supply and stable demand resulted in the observed price decline.

Mexico

In W52, Mexico's onion prices fell sharply to USD 0.77/kg, reflecting a 14.44% week-on-week (WoW), 27.36% MoM, and 65.47% YoY decline. This significant drop is driven by a surplus from the new harvest, particularly in key production areas like Sinaloa, which increased supply. The peak harvest season has resulted in an oversupply, exerting downward pressure on prices. Moreover, due to competition from other major exporters, such as the Netherlands and India, reduced export demand further swelled the domestic stock. Seasonal fluctuations in domestic consumption have also forced sellers to lower prices to prevent inventory buildup.

Egypt

In W52, Egypt's onion prices dropped to USD 0.22/kg, reflecting an 18.52% WoW, 35.29% MoM, and 60.71% YoY decline. This sharp price decrease is attributed to a significant increase in domestic production, driven by favorable weather conditions in key areas like the Nile Delta and Upper Egypt, resulting in higher yields and abundant supply. Moreover, the Egyptian government's initiatives to enhance market efficiency, reduce export restrictions, and improve logistical access have bolstered domestic availability. These factors combined to stabilize the market and exert downward pressure on prices, marking a substantial decline compared to last year.

3. Actionable Recommendations

Optimize Onion Production Surplus Management

Mexico’s onion market has been significantly impacted by an oversupply from the new harvest, leading to substantial price drops. To address this, Mexican producers should improve market forecasting and coordination to match supply with domestic and international demand better. Producers can avoid oversupply during peak harvest periods and ensure more consistent pricing by implementing better crop rotation and planting schedules. Moreover, strengthening export channels to non-traditional markets could help reduce dependence on major buyers and improve price stability. Enhancing storage capacities would also allow producers to manage their inventory during periods of surplus better, reducing pressure to sell at low prices.

Diversify Onion Exports

Peru has shown remarkable growth in its onion export sector, particularly with the US being the dominant market. To further boost this growth, Peruvian producers should explore expanding into emerging markets in Asia and Africa, mainly targeting countries like India, Bangladesh, and Vietnam, where onion consumption is rising due to population growth and dietary changes. In Africa, nations such as Nigeria, Kenya, and South Africa present significant opportunities due to their increasing demand for onions, driven by urbanization and a growing middle class. Peru can diversify its market base by leveraging the strong demand from established buyers like the US while also targeting these new regions. Furthermore, by continuing to enhance the quality and consistency of their exports, Peru can build long-term partnerships and secure a larger share of the global market. Investment in advanced post-harvest handling and storage facilities will ensure that the produce remains high quality during transit, helping maintain a competitive position in international markets.

Strengthen Onion Price Stability through Strategic Partnerships

Mexican onion producers should establish strategic partnerships with international buyers and distribution networks to prevent significant price fluctuations and enhance long-term market stability. Producers can create a more predictable demand by negotiating long-term contracts with key export markets such as the US and Canada, mitigating the risks posed by price drops due to oversupply. Moreover, collaborating with distributors in emerging markets like Southeast Asia and the Middle East will help stabilize income streams. Implementing contracts with flexible pricing based on market conditions will allow producers to adjust to shifts in demand while ensuring a fair price for buyers and sellers. This approach, combined with improving the forecasting of domestic and international market needs, will help manage inventory more effectively and reduce reliance on unpredictable spot markets. Mexico can stabilize its onion market by building solid, mutually beneficial relationships with buyers while increasing its export potential.

Sources: Tridge, Dan Viet, Freshplaza, Nieuwe Oogst, Potato News Today