1. Weekly News

Belgium

Onion Cultivation in Flanders Surged by 21% YoY in 2024

Onion cultivation in Flanders has surged 21% year-on-year (YoY) in 2024. This growth continues a trend of increasing onion production driven by high prices earlier in the year. The total area dedicated to onions has expanded to around 4,500 hectares (ha). According to an analysis by the Agency for Agriculture and Sea Fisheries based on parcel declarations, 3,122 ha are allocated for industrial use, while 1,381 ha are for the fresh market, including 141 ha of early varieties.

Netherlands

Dutch Onion Exports Decline in 2023/24 Season Compared to Previous Years

The Netherlands' 2023/24 onion export season has been disappointing, with volumes falling short of the 2022/23 and 2021/22 campaigns. According to export figures, the total onion exports reached 1.04 million metric tons (mmt), a decrease of 7% YoY from the previous season and 20% from the 1.3 mmt in the 2021/22 season. Senegal remains the top destination for Dutch onions, receiving 170,465 metric tons (mt), an increase of 8 thousand mt from 2022/23. However, exports to Great Britain, Côte d'Ivoire, Germany, France, Malaysia, Indonesia, the Dominican Republic, and Nicaragua have all declined. Conversely, exports to Israel, Italy, and Brazil have seen increases.

Peru

Peru's Onion Exports Surged in Q2-24 with Significant YoY Growth

In Q2-24, Peru's onion exports surged to 24,534 mt, valued at USD 9.56 million, marking a significant YoY increase of 153% in volume and 219% in value. The average price per kilogram (kg) rose by 26% YoY, from USD 0.31/kg in Q2-23 to USD 0.39/kg in Q2-24. Most onions were shipped fresh (91.3%), with a smaller portion dehydrated (8.7%). Red onions accounted for 45.6% of the exports, followed by yellow (8.6%) and white onions (7.7%). Shipments were sent to 12 destinations, up from six in the previous year. Colombia was the top market, receiving 16,356 mt worth USD 3.97 million, with an average price of USD 0.24/kg.

South Korea

Jeju to Expand Winter Onion Cultivation Area in 2024/25 Amid High Price Expectations

In Jeju, South Korea, the area dedicated to winter vegetable cultivation will increase for the 2024/25 season, driven by high market price expectations for products like cabbage, carrots, and onions. The total cultivated area is projected to reach 12,235 ha, up by 1.1% YoY but 4.7% below the average of previous years. Onion cultivation is anticipated to grow by 3.3% YoY. To address potential overproduction and stabilize supply and demand, particularly for cabbage, carrots, and onions, a reduction of more than 10% in their cultivation areas is recommended. The specific areas for cabbage, carrots, and onions are 1,784 ha, 1,300 ha, and 775 ha, respectively.

Ukraine

Early Harvest Reduced Ukrainian Onion Prices in Jul-24

In the Donetsk region of Ukraine, vegetables traditionally become more affordable in July. In 2024, an early harvest contributed to decreased prices. Tomato prices dropped the most, followed by beets, onions, and potatoes. Specifically, onions decreased by USD 0.085/kg to USD 0.29/kg.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W29 2023 to W29 2024)

India

In W29, onion prices in India remained stable at USD 0.33/kg for the fifth consecutive week due to an increased supply of Rabi onions and the onset of monsoon rains. The government expects prices to moderate further as supply from major onion-producing regions like Nasik increases. In collaboration with state governments, the Agriculture Ministry aims to sow onions on 360 thousand ha during the Kharif season, up from 280 thousand ha in 2023. However, prices were relatively higher during the same period in 2023 due to factors such as rainfall affecting Rabi onion quality, delays in Kharif sowing, prolonged dry spells impacting Kharif production, and trade-related measures by other countries.

Mexico

Mexican onion prices decreased by 6.25% week-on-week (WoW), falling from USD 0.64/kg to USD 0.60/kg in W29. Month-on-month (MoM) prices also dropped significantly by 34.07%. This decline is due to a high yield in production, a dramatic slowdown in demand from the United States (US) market, and reduced demand from the domestic market.

Egypt

In W29, Egypt's wholesale onion prices held steady WoW at USD 0.12/kg but have dropped significantly by 70.36% YoY. This substantial decline is due to high stock levels and the suspension of export permits to Saudi Arabia. Although there is an adequate supply of Egyptian red onions, prices remain low due to limited competition. In Western Europe, especially in England, there is a strong demand for Egyptian red onions. However, Eastern Europe's preference for lower-priced yellow onions from the Netherlands presents a competitive challenge for Egyptian exports this season.

Spain

The onion market in Spain is experiencing significant shortages, driven by a substantial reduction in supply both nationally and globally. Spanish late onion production has decreased this season compared to previous years, primarily due to unfavorable weather conditions and reduced planting areas. This sharp decline in production has led to a scarcity of onions in the market, resulting in a noticeable price surge. Prices increased by 57.89% MoM from W26 to W29 2024 and 11.11% WoW from W28 to W29 2024. The onion shortage has created a seller's market, with reduced availability driving up prices due to competition among consumers and businesses. Global supply chain disruptions and increased demand from other regions further complicate imports and local price stabilization. As a result, the Spanish onion market will likely see high price volatility until production recovers and supply chains normalize.

3. Actionable Recommendations

Expand Processing Capacity and Market Access for Onions in Peru

Peru should invest in expanding its onion processing capacity and enhancing market access to sustain its impressive export growth. Peru can capitalize on its recent export success by building additional processing facilities and exploring new international markets. Strengthening trade agreements with essential buyers, such as Colombia and Brazil, and improving product quality will help maintain high export values and stabilize domestic prices. This expansion will benefit Peruvian producers by ensuring continued market demand and reducing price fluctuations.

Enhance Market Diversification and Export Opportunities for Onions in the Netherlands

The Netherlands should focus on diversifying its onion export markets to address the disappointing export figures for the 2023/24 season. Expanding beyond traditional markets like Senegal to new regions like Eastern Europe and Southeast Asia could mitigate declines in exports to current significant buyers. The Netherlands can capture new market shares and enhance its global competitiveness by improving product quality and developing targeted marketing strategies. This approach will benefit Dutch producers by stabilizing export revenues and reducing market volatility.

Address Price Fluctuations and Export Challenges in Egypt

Egypt should address price fluctuations and export challenges by improving onion quality and diversifying export markets. Investing in better storage facilities and exploring new trade agreements can help stabilize domestic prices and enhance competitiveness in international markets. By overcoming the current competitive challenges from Eastern European imports, Egypt can better leverage its strong demand in Western Europe and increase its market share. This approach will benefit Egyptian producers by ensuring more stable prices and expanding export opportunities.

Sources: Nieuwe Oogst, Agrinet, Fructidor, Agro Peru, India Today