W9 Onion Update: South Korea's Export Initiative and Greek Farmers' Import Concerns

Published 2024년 3월 8일

In W9 in the onion landscape, the South Korean government is stabilizing its onion market by exporting a portion of its reserves purchased in 2023. About 1,903 mt of government-purchased onions from the 2023 harvest are being exported to select Asian countries, following recent agricultural data indicating a 4.7% YoY increase in cultivation area in 2024. To manage inventory levels, the government conducted a public auction on February 21, 2024, selling onions to three export companies. Meanwhile, Greek farmers express concern over a 20.19% YoY increase in fruit and vegetable imports into Greece during Jan-24 and Feb-24, emphasizing the need for fair competition and equal compliance with regulations in trade agreements to protect European farms from unfair practices and maintain market viability

South Korea Exports Government-Purchased Onions to Stabilize Domestic Market

The South Korean government has undertaken measures to stabilize the Korean supply and demand of domestic onions by exporting a portion of its government-purchased reserves. The Korea Agro-Fisheries and Food Trade Corporation (AT) announced the export of 1,903 metric tons (mt) of government-purchased onions from the 2023 harvest to select Asian countries. This initiative follows government purchases undertaken in 2023 to mitigate potential supply and demand disruptions.

Recent agricultural data indicates a 4.7% year-on-year (YoY) increase in the cultivation area of onions in 2024, necessitating further inventory management strategies. AT conducted a public auction on February 21, 2024, for these onions, resulting in sales to three export companies. The government plans to implement additional measures, such as promoting the release of onions for processing, to further stabilize the domestic market.
Releasing government-held onion reserves through exports allows the government to manage inventory levels while mitigating potential market oversupply and price fluctuations. Exporting these onions also contributes to the generation of foreign currency. The export process commenced on February 23, 2024 with shipments to Vietnam, followed by planned future exports to Japan and China.

Increased Vegetable Imports Raise Concerns Among Greek Farmers

Data from the Greek Incofruit Exporters Association reveals a significant YoY increase in fruit and vegetable imports into Greece during Jan-24 and Feb-24. Overall fruit and vegetable imports into Greece increased by 20.19% YoY, reaching 129 thousand metric tons (mt) compared to 107 thousand mt in 2023. Notable YoY increases were observed in imports of onions (+68.16%), apples (+236.04%), kiwis (+957.3%), peppers (+39.5%), and tomatoes (+206.8%).

The Incofruit Exporters Association highlights concerns regarding unfair competition from third countries due to perceived discrepancies in labor, social, and environmental regulations compared to the European Union (EU). Additionally, they emphasize the potential negative impact of free trade agreements on the viability of European farms. The association proposes the incorporation of "mirror clauses'' in future trade agreements to ensure equal compliance with regulations and standards across all parties involved.