W46: Weekly Onion Update

Egypt

Lower Temperatures in Egypt Will Improve the Production of Onions and Garlic (Nov 14)

Cooler temperatures in Egypt at the end of the year encourage red onion and garlic production, and stable volume levels are expected. Maintaining the same plants as in 2021 despite rising costs. Due to the rising cost of energy and the devaluation of the Egyptian pound, some Egyptian producers will reduce the area under crops by 70%. Harvesting of the next crop of garlic and red onions in Egypt will take place in January 2023. 

Egypt’s Red Onion Price Increased 10% MoM in November as Supply Decreased (15 Nov)

The Egyptian red onion stock has decreased as the season that began in April is coming to an end, causing prices to rise by about 10% MoM from USD 180/MT EXW in October to USD 200/MT EXW in November. Suppliers are expecting prices to keep increasing during December.

Brazil

Ituporanga Starts the Onion Harvest With High Price (Nov 14)

Price reached the highest value of the series this week. The onion crop in the region of Ituporanga (SC), showed significant demand in W46. The early harvest is being advanced by some producers due to the good prices, bulbs are being sold green and others are flowering due to the low temperatures in the last week. Sales were being made only in the region, and prices had a high average, registering the highest value in the historical series since the year 2000 in the region: USD 1.08/kg (BRL 5.75/kg). Due to the still low supply and high demand, “flowered” onions are being sold for a lower price, around USD 0.47/kg (BRL 2.50/kg) due to their lower market attractiveness.

Netherlands

Exports of Onions Are Falling This Season (Nov 15)

After the record year 2021, the export of onions is falling this season. Chairman Gijsbrecht Gunter of the Holland Onion Association mentions two causes, growers have sown 9% fewer onions this season because the yields have been disappointing in recent years. Arable farmers have more often opted for less risky crops such as grain and potatoes. Due to the high grain prices, the cultivation of wheat is attractive.

Ukraine

The Onion Harvest in Ukraine Decreased by a Third (Nov 17)

In the 2022/23 marketing year, Ukrainian onion producers received 732K tons of onions, which is 29% less than in 2021, which is the lowest result in the last 8 years. As reported by the Netherlands Onion Association, due to the Russian occupation and hostilities, the cultivated area under this crop in Ukraine decreased by 15%.