W11 Onion Update: Vietnam's Fruit and Vegetable Exports to China Soar, Moldova Grapples with Plummeting Onion Prices

Published 2024년 3월 22일

In W11 in the onion landscape, according to the data from the Vietnam General Administration of Customs, Vietnam's fruit and vegetable exports to China have seen remarkable growth, reaching USD 3.4 billion in 2023, elevating Vietnam to the second-place position behind Thailand. Driven by increasing durian demand and favorable market access conditions, the surge boosted Vietnam's market share from 8% in 2022 to 14% in 2023. In Jan-24, exports continued their upward trajectory, hitting USD 306 million, a 20.1% MoM increase and a 103.9% YoY surge. Meanwhile, Moldova's onion market faces a stark price decline due to the rapid germination of onions from the 2023 harvest, prompting farmers to sell stock at lower prices. With limited marketable onion stocks and unfavorable weather forecasted, Moldova anticipates further price decreases in the coming weeks.

Vietnam's Vegetable and Fruit Exports to China Surge

Vietnam's fruit and vegetable exports to China have experienced significant growth in recent years, driven by a surge in durian demand and favorable market access conditions. Vietnamese exports of vegetables, root, tubers, fruits, and processed products to China reached USD 3.4 billion in 2023, surpassing Chile for the second-place position. This represents a market share increase from 8% in 2022 to 14% in 2023. Thailand remains the market leader with a 36% share (USD 8.6 billion) despite a slight year-on-year (YoY) decline.

Data from the Vietnam General Administration of Customs indicates a continued upward trend in 2024, with fruit and vegetable exports to China reaching USD 306 million in Jan-24, representing a 20.1% month-on-month (MoM) increase and a 103.9% YoY surge compared to Dec-23. Land border trade through Lang Son Province currently dominates Vietnamese fruit and vegetable exports to China, with dragon fruit, jackfruit, mango, and durian being the primary products.

Moldovan Onion Prices Plummet as Germinating Stock Spurs Sales

The Moldovan onion market is experiencing a rapid decline in prices for yellow onions. Over the past week, the average price for yellow onions in Moldova decreased by 14% week-over-week (WoW), reaching USD 0.39 per kilogram (kg). Market operators attribute this price decrease to the rapid germination of onions from the 2023 harvest stored by agricultural producers.

To minimize losses, farmers are incentivized to sell their stock even at significantly lower prices compared to those observed at the end of Feb-24. Expert estimates suggest that current marketable onion stocks on farms are very limited, likely below 1 thousand metric tons (mt).

The germinated state of the onions is impacting their quality, potentially further limiting the window for sales. The entire stock within the next two weeks is unlikely to accommodate the current consumer demand. Anticipated rain throughout the current week in Moldova is expected to hinder sales activity in wholesale and retail markets further, potentially leading to additional price decreases.