W10 Onion Update: Egyptian Onions Surge in Germany, Korean Market Disrupted by Unseasonal Rains

Published 2024년 3월 15일

In W10 in the onion landscape, the surge in Egyptian onion exports to Germany in 2023 reflects a broader trend of growth seen across various Egyptian fruit and vegetable categories exported to the German market. Egypt's exports of fresh onions to Germany more than doubled, reaching 16 thousand mt, contributing to a record year for Egyptian fruit and vegetable exports to Germany. Meanwhile, unseasonal rains in Feb-24 disrupted the Korean spring agricultural market, particularly impacting onions and green onions. Concerns arise about onion yields, soaring green onion prices, and potential supply shortages for various vegetables, prompting the Korean government to apply tariff quotas on imported green onions to stabilize prices.

Egyptian Onion Exports to Germany Surge in 2023

The surge in Egyptian onion exports to Germany aligns with a broader trend of growth observed across various Egyptian fruit and vegetable categories. Notably, exports of potatoes, grapes, and oranges also experienced significant increases in 2023. Egypt's exports of fresh onions to Germany witnessed a significant increase in 2023, contributing to a record year for Egyptian fruit and vegetable exports to the German market.

In 2023, Germany imported over 190 thousand metric tons (mt) of Egyptian fruits and vegetables, reflecting a 25% YoY increase compared to 2022. Egyptian onion exports to Germany more than doubled in 2023, reaching 16 thousand mt. The five leading Egyptian exports to Germany, which are potatoes, frozen strawberries, grapes, onions, and oranges, collectively accounted for approximately 85% of the total volume. While Egypt ranked first among non-European Union (EU) suppliers for both potatoes and onions, it remained behind major EU producers like the Netherlands and France in terms of overall volumes within these segments.

Unseasonal Rains Disrupt Korean Spring Onion Market

The Korea Agricultural Research Institute's Mar-24 observations revealed a concerning picture for the Korean spring agricultural market, particularly impacting onions and green onions. Adverse weather conditions in Feb-24 have disrupted Korean spring agricultural production, leading to concerns about onion yields, soaring green onion prices, and potential supply shortages for various vegetables.

Early-season onion production for mid-Mar-24 shipment is forecast at 212.2 thousand mt, marginally exceeding the previous year (+0.6% year-on-year) but falling slightly below the year average (-1.1% YoY). Despite a 0.5% increase in cultivation area compared to 2023, and 1.9% YoY increase in annual average,, the yield (production per unit area) is expected to decline by 2.9% YoY compared to the annual average. Green onion prices have skyrocketed due to supply disruptions caused by February rains. Feb-24 wholesale prices at Garak Market in Seoul are 79% to 134% YoY higher compared to 2023 and annual average. Green onion imports have risen sharply to compensate for domestic supply shortages. Imports from February 1 to 20, 2024 interval reached 4,544 mt, representing a 170% YoY increase.

The Korean government's application of tariff quotas on imported green onions on Jan-24 helped stabilize prices. With a 27% tariff, the import price falls to USD 1.08 per kg, significantly lower than the current domestic price.