W48 Onion Update: Global Price Fluctuations, Weather Challenges, and Export Policies in 2023

Declining Winter Vegetable Supply in Ukraine Raises Concerns Over Onion Prices

Ukraine's winter vegetable supply is decreasing, which can potentially increase onion prices. Despite a good harvest, Ukrainian analysts predict that the decrease in storage stock and the cost of onions in the countries where Ukraine imports them will cause prices to rise. Over half of the domestic storage has already been depleted, and as the New Year approaches, Ukraine is likely to start with early imports of fruits and vegetables, including onions. Imported goods are typically priced differently from local products, potentially increasing onion prices.

Challenges in Dutch Onion Cultivation Impact Quality and Market Dynamics

In the Netherlands, onion cultivation faces challenges with a 10 to 15% less harvest than the five-year average, coupled with mediocre quality. Despite these challenges, the onion trade with Poland is thriving, driven by low prices and a high supply. The market is experiencing significant fluctuations and prices vary daily. For large onions in the Netherlands, prices range from USD 0.43 to 0.54 per kilogram (EUR 0.40 to 0.50/kg), with delivery expected between Jan-24 and Mar-24.

Positive Outlook for Spanish Onion in the 2023/24 Season With Increased Harvests and Stable Prices

The Spanish onion season is progressing well with favorable prices, and cultivated areas increasing by 15% year-over-year (YoY) for the 2023/24 season. Onion harvests have been 10 to 12% higher than the previous year, and as Christmas approaches, sales have increased. However, the market is not saturated, contributing to stable prices. The processing industry actively seeks onions, with a particular interest from the catering industry.

Peru's Onion Exports Increased by 0.54% YoY from Jan-23 to Oct-23

Peru exported USD 75.2 million worth of onions between Jan-23 and Oct-23, a 0.54% YoY increase. However, the production volumes dropped by 13.1%. A total of 186.6 million kilograms (kg) of onions were exported, with the United States (US) being the main destination for 46% of Peruvian onion exports. With an average price of USD 0.40/kg, the onion price in Peru was USD 0.05/kg higher than last year. The US contributed 46% of Peru's onion export revenues, amounting to USD 49.1 million for 105.4 million kg. Spain held a 19% share, accounting for USD 14.5 million from 27.9 million kg, and Colombia had an 11% share with USD 8.4 million generated from 37.4 million kg.

Adverse Weather in Nov-23 Impacted Onion Production in Brazil

Onion producers in Brazil's northeast and south regions face challenges due to adverse weather conditions in Nov-23. In the northeast, intense heat is causing increased pest activity and reduced onion bulb size, impacting production and product quality. In the southern regions, heavy rainfall is causing issues with field management, compromised onion quality, and extended curing times. Despite higher onion volumes, quality is significantly impaired, with issues like rot and bacterioses affecting market acceptance. These adverse weather conditions directly impact the commercialization of onions, causing slow market acceptance and concerns about crop profitability.

Russia's Primorsky Krai Receives 1.5 Times More Onions from Kazakhstan in 2023

The import of onions from Kazakhstan to Russia's Primorsky Krai has increased by 1.5 times since the beginning of 2023, reaching 7.2 thousand tons. The Russian Federal Service for Veterinary and Phytosanitary Supervision reported that the region received 5.6 thousand tons of fresh produce from seven foreign countries, with China being the leading supplier.

Indian Government Allows Onion Exports Until November 30, 2023, with Imposed Minimum Export Price

The Indian government has allowed onions to be exported until November 30, 2023, if registered with customs authorities before October 29, 2023. A minimum export price of USD 800 per metric ton (mt) was imposed on October 28, 2023, to increase domestic availability and control prices. The Directorate General of Foreign Trade (DGFT) stated that export tax paid before this notice will not be refunded.