1. Weekly News

Paraguay

Paraguay Launches Onion Exports to Argentina Boosting Agricultural Trade

In W43, the export of Paraguayan onions to Argentina commenced with a shipment of 28,800 kilograms (kg), marking a significant development in the agricultural trade between the two countries. This shipment, which consists of 1,600 bags of 18 kg each, adds onions to the existing list of fruit and vegetable products, including tomatoes and carrots, marketed to Argentina. The milestone was celebrated at an event at Boreal Puerto Seco, attended by key government officials, including the Minister of Agriculture and Livestock and the president of the National Plant and Seed Quality Service (Senave). Officials highlighted the potential of Chaco production and emphasized the ongoing efforts to enhance the quality of agricultural products for export. The Minister noted that this export supports the local economy and alleviates pressure on domestic onion prices.

South Korea

South Korea Seeks Enhanced Disaster Recovery Support for Onion Farmers Amid Rising Agricultural Losses

The South Korean government has acknowledged the need for improved disaster recovery support in response to frequent agricultural disasters impacting onions and other crops. Abnormal weather has led to significant onion crop failures, yet relief measures cover only a fraction of recovery costs. Although disaster recovery funds exist, onion farmers are eligible for only 50% of government subsidies, with additional costs covered by loans and self-payment. Although proposed legislative changes aim to enhance support for onion recovery costs, financial constraints have slowed reforms. The Ministry of Agriculture, Food and Rural Affairs (MAFRA) has pledged to continue discussing subsidy increases to support farmers effectively.

Ukraine

Onion Prices Surge 38% YoY at Shuvar Market Due to Low Yields, Rising Costs, and Regional Conflict

The average price of onions at the Shuvar wholesale market in Lviv has risen to USD 0.35/kg (UAH 14.5/kg), marking a 38% year-on-year (YoY) increase from USD 0.25/kg (UAH 10.5/kg). Key drivers behind this rise include reduced yields due to adverse weather conditions, extreme heat and inconsistent rainfall, and escalating costs for fertilizers, fuel, and energy. The Head of Marketing at Shuvar notes that production declines are the primary factor contributing to the price hike, compounded by increased transportation and storage expenses due to the ongoing conflict in the region.

Additionally, some producers have shifted away from onion cultivation, favoring other crops amidst economic uncertainties, further limiting supply. Although onion consumption remains stable in Ukraine, many consumers are turning to less costly alternatives, such as imports or lower-quality products. Experts anticipate continued price increases in the coming months, with potential stabilization expected in spring when new harvests become available.

United States

Investigation Underway for E. Coli Outbreak Prompting Onion Recalls

The Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) are investigating an Escherichia coli (E. coli) outbreak associated with a famous fast-food burger, affecting 75 people across 12 states and resulting in one death. Due to potential contamination, major restaurant chains and food distributors have pulled raw onions from their products. While some onions have been voluntarily recalled, investigators are determining whether the contamination source is the onions or the beef patties. The CDC has stated that the risk to the public remains low following the recall and recommends that anyone experiencing E. coli symptoms seek medical care promptly.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W43 2023 to W43 2024)

India

India's onion prices have experienced a slight decline, averaging USD 0.40/kg in W43, marking a 2.44% decrease week-on-week (WoW). Despite this decrease, overall onion prices are likely to remain elevated leading up to Diwali, primarily due to recent heavy rainfall in key producing states — Maharashtra, Karnataka, Telangana, and Andhra Pradesh — resulting in crop damage and delayed harvests by 10 to 15 days. To mitigate price pressures, the government has initiated the sale of onions from its buffer stock and has implemented transportation measures to enhance supply in Northern regions. As the harvest delays persist, onion prices may remain firm for the upcoming weeks, posing ongoing concerns for consumers and the broader economy.

Netherlands

In W43, onion prices in the Netherlands rose to USD 0.13/kg, representing an 8.33% increase WoW, although prices remain significantly lower, down 58.06% YoY from USD 0.31/kg. This season is marked by challenges, including late sowing and excessive rainfall, leading to increased bacterial pressure and quality issues. As a result, growers face market stability and profitability uncertainty, contrasting sharply with previous years when profits were more immediate post-harvest. Demand for onions is broad, with notable interest from traditional markets like the United Kingdom (UK) and signs of recovery in exports to Africa, Central America, Malaysia, and Israel. However, concerns persist about onion quality, which could affect trust between buyers and sellers. Additionally, previous demand from Poland for industry onions may return, potentially stabilizing the market if price concessions are made. Integrating partnerships for selling and sourcing onions may enhance opportunities for Dutch producers in international markets.

Mexico

In W43, Mexico's wholesale onion prices remained stable at USD 0.65/kg, reflecting a notable decrease of 10.96% in both MoM and YoY from USD 0.73/kg. The onion harvest in the Francisco de Ibarra Ejido, Durango, is promising. Producers express optimism despite facing adverse weather, pests, and diseases. Onions, chili peppers, and nuts are traditional crops in this region, with local farmers heavily investing their resources and labor into their cultivation. However, producers expressed concerns about potential weather impacts, particularly unexpected frosts that could jeopardize the harvest. While current prices indicate a stable market, the inherent vulnerabilities faced by producers underscore the need for improved support systems to protect agricultural investments.

Egypt

Egypt's wholesale onion prices rose to USD 0.38/kg in W43, an 8.57% increase WoW and a 65.22% rise MoM from USD 0.23/kg in W40. The lifting of India's export ban has positively impacted domestic onion prices, generating optimism among Egyptian farmers. On a broader scale, Egypt's agricultural exports are gaining traction in new markets. Recently, Costa Rica announced opening its markets to Egyptian fresh onions, a decision celebrated by the Minister of Agriculture and Land Reclamation. This initiative is part of a broader government strategy to enhance agricultural exports, thereby supporting the national economy and increasing foreign currency revenues.

Spain

In Spain, wholesale onion prices stabilized at USD 0.21/kg in W43, showing a 4.55% MoM decline and a 52.27% drop YoY, attributed to increased supply and reduced export demand. This price drop follows a 20% increase in sown area and higher yields compared to last season. However, weak demand from European markets, which already have ample supply, has dampened prices. According to the director of Castilla Onion Producers' Association (Procecam), oversupply in Spain has persisted since Jul-24, as expanding onion production across Europe, except in France, where disease impacted yields, limits Spain's export opportunities. Additionally, many new Spanish producers lacked advance contracts and packaging resources, exacerbating supply chain challenges.

3. Actionable Recommendations

Enhance Export Opportunities

Stakeholders should actively seek to expand export markets for Paraguayan onions, building on the recent success of shipments to Argentina. Developing relationships with emerging markets in Central and South America and potential buyers in Asia and Europe can help diversify export avenues. Conducting market research to identify specific demand trends and preferences in these regions will facilitate tailored marketing strategies. Additionally, enhancing the quality assurance processes for exported onions will increase buyer confidence and potentially command higher prices.

Strengthen Disaster Recovery Support for Farmers

In response to the challenges faced by onion farmers in South Korea, stakeholders should advocate for improved disaster recovery measures. This includes lobbying for increased government subsidies and streamlined access to relief funds to ensure farmers receive adequate support during crop failures. Establishing cooperative networks among farmers can also help facilitate collective bargaining for better terms in recovery support and financing, allowing for shared resources in times of crisis. Investing in climate-resilient agricultural practices will further bolster the ability of onion producers to withstand adverse weather conditions.

Sources: Agravery, SINOR, Nongmin, LA Times, Hindustan Times, Portal Portuario, El Sol De Durango, Fresh Plaza.