1. Weekly News

Colombia

Colombia's Onion Prices Plunge in W6 as Production Peaks

Colombia's onion prices experienced notable declines. Monteria saw the sharpest drop at 37% week-on-week (WoW) to USD 0.36 per kilogram (kg) in W6, while Medellin recorded a 15% WoW decrease to USD 0.70/kg. These price drops highlight the market's sensitivity to increased supply, with local factors likely contributing to the varying degrees of decline across cities.

Mexico

Oversupply Pressures Yellow Onion Prices as Mexico Expands Exports

The United States (US) onion market is facing an oversupply that is driving down prices, particularly for yellow onions now selling below production costs. Mexico's large crop and rising shipments have added to the pressure. Meanwhile, Canada and Peru also contribute strong supplies. Abundant local onions on storage have further pressured the market, causing yellow onion prices to fall below production costs, though red and white onions remain profitable. Mexico’s onions are of good quality, but onions on storage from Washington, Idaho, and Oregon are beginning to show typical quality issues, including sprouting, translucency, and internal decay due to prolonged storage. While demand was strong in January, it slowed toward the end of the month, following seasonal trends. The yellow onion market is unlikely to recover before May-25, while red and white onions may hold steady but could weaken as additional Mexican imports arrive.

Meanwhile, the US has imposed a 25% tariff on imports from Mexico and Canada, effective February 4, 2025. These tariffs, announced by President Donald J. Trump, were introduced as part of broader trade measures and could raise costs for importers. However, their ultimate impact on producers and consumers will depend on market price dynamics. Notably, the tariffs on Mexican imports have been temporarily suspended until March 4, 2025, to allow for negotiations, while tariffs on Canadian imports remain in effect.

Philippines

Philippines Authorizes Onion Imports to Stabilize Supply

The Philippines has approved the import of 3 thousand metric tons (mt) of red onions and 1 thousand mt of white onions to maintain buffer stocks and prevent shortages. As of mid-Jan-25, the Bureau of Plant Industry (BPI) reported red onion stocks at 8.5 thousand mt and white onion stocks at 1.6 thousand mt. Imports are intended to stabilize prices before the March harvest, which is projected at 33 thousand mt. This decision follows concerns over potential supply gaps caused by typhoons, pests, and disease, aiming to prevent a repeat of the 2022 crisis when onion prices surged to USD 12.10/kg (USD 700/kg). BPI data indicates that the country's monthly consumption stands at 17 thousand mt for red onions and 4 thousand mt for white onions. Following a bumper harvest last year, red onion stocks were expected to last until February, aligning with the new harvest season.

Ukraine

Onion Prices in Ukraine Decline as Market Supply Increases

Onion prices in Ukraine have continued to decline sharply in W6 as increased market supply pressures the market. Many farmers initially withheld sales, expecting higher wholesale prices. However, a gradual decline in onion quality has prompted them to sell, leading to an average 12% WoW price drop. Depending on quality and batch size, onions are currently priced between USD 0.19 to 0.34/kg (UAH 8 to 14/kg), marking a 20% YoY decline since early Feb-24. Some producers with high-quality onions are opting to delay sales until at least March in hopes of securing better prices.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W6 2024 to W6 2025)

India

India's onion prices rose by 8.70% WoW to USD 0.25/kg in W6, indicating a 19.05% month-on-month (MoM) spike and a 47.06% year-on-year (YoY) increase. The price increase is due to concerns over potential overproduction risks in key growing regions like Pune, where expanded cultivation has heightened market uncertainty. Additionally, weather-related challenges, including extended overcast conditions, have raised quality concerns, leading to supply adjustments and a cautious market approach. Anticipating better prices in the summer harvest, farmers have limited immediate sales, contributing to the upward price movement. Despite previous price declines, these factors have fueled a short-term price rebound.

Netherlands

In W6, the Netherlands' onion prices remained steady at USD 0.14/kg since W4 due to stable local demand providing some price support. However, it reflects a 6.67% MoM drop and a 65.85% YoY decrease due to persistently weak export demand, particularly from the Far East and the Caribbean, and increased competition from Chinese onions in key markets. Additionally, global trade uncertainties and reduced purchasing activity from major buyers have continued to exert downward pressure, limiting price recovery despite moderate domestic consumption.

Mexico

In W6, onion prices in Mexico held steady at USD 0.48/kg, showing a 29.41% MoM drop and an 80.49% YoY decrease due to an oversupplied market driven by a large domestic crop and increasing exports. Large onion reserves in Mexico, and strong supplies from Canada and Peru, have further pressured prices, particularly for yellow onions, which have fallen below production costs. Additionally, the delayed export season has kept more onions in the domestic market, contributing to the prolonged price decline. While demand was strong in Jan-25, it slowed toward the end of the month, following seasonal trends, and keeping prices under pressure. The US has now imposed a 25% tariff on Mexican and Canadian onions, effective February 4, 2025, as part of broader trade measures. However, the ultimate market impact will depend on supply levels and export activity in the coming months. Notably, tariffs on Mexican onions have been temporarily suspended until March 4, 2025, pending negotiations, while tariffs on Canadian onions remain in effect.

Egypt

Onion prices in Egypt dropped by 9.52% WoW and MoM to USD 0.19/kg in W6, with a 64.15% YoY decrease. The price drop is due to strong local supply supported by favorable weather in key growing regions such as the Nile Delta and Upper Egypt, ensuring stable harvests and abundant availability. Additionally, improved market access and logistics, driven by government initiatives, have facilitated smoother distribution, keeping prices under pressure. The sharp YoY decline reflects last year’s supply shortages, which led to significantly higher prices. If current supply levels remain high and export demand does not pick up, prices may continue to face downward pressure in the short term.

Spain

Spain's onion prices remained steady at USD 0.29/kg in W6, with an increase of 7.41% MoM due to strong export demand and limited supply during the transitional period between harvest cycles. As local availability tightens, the market remains supported by steady international interest, particularly from key European buyers. However, there is a drop of 39.58% YoY due to a significantly higher domestic supply in early 2024, which kept prices elevated last year. Additionally, the 2024 harvest ended earlier than usual, and adverse weather conditions reduced production, further contributing to the annual decline. Looking ahead, price movements will depend on the timing and volume of the upcoming harvest, with potential stabilization or increases if supply tightens further.

3. Actionable Recommendations

Diversify Onion Sales Channels

Onion distributors should expand sales beyond traditional retail by targeting food service providers and processing industries to manage oversupply. Promoting red and white onions in premium segments while exploring export opportunities can help stabilize market conditions and offset price pressures on yellow onions.

Optimize Onion Inventory Management

Onion distributors should prioritize moving storage onions before quality declines further while leveraging Mexico’s high-quality supply to meet demand. Exploring alternative buyers, such as food processors and wholesalers, can help mitigate price pressures, especially for yellow onions facing oversupply.

Expand Sales Networks to Stabilize Onion Prices

Onion wholesalers and retailers should expand distribution networks to mitigate the impact of local price declines. Targeting cities with more stable demand and developing direct-to-consumer sales through local markets and online platforms can help balance supply fluctuations. Collaborating with food service providers and processors can also create alternative sales channels, ensuring a steady demand despite market volatility.

Sources: Tridge, Department of Agriculture PH, Freshplaza, Eastfruit, Paradigm Fresh