World onion market: shortages, heat and soaring prices

The onion market is changing rapidly around the world due to drought, disease, overproduction and trade restrictions. The largest suppliers are adapting to new challenges: there is a lack of water in some places, demand in others, and prices have skyrocketed in others due to a shortage of large sizes.

In the UK, a prolonged drought has stopped the growth of the main onion crop and is threatening yields. Heat and uneven access to water are reducing the size and increasing the risk of disease.

In Spain, prices are at record levels: there is a shortage of large onions, demand from the HoReCa sector is high, and the early harvest has decreased by 35–40%. It is expected that new supplies from the Netherlands and Germany will stabilize the situation somewhat, although their quality is not suitable for long-term storage.

In Italy, there is a shortage of large sizes, although some processors, such as in Puglia, are reporting yields of up to 75 t/ha. In Switzerland, imports have started earlier than usual due to last year’s poor harvest and storage difficulties.

In Germany, the winter onion harvest is coming to an end, while the summer crop has been affected by a fungus. Austria is forced to store old onions longer due to a delay in the new harvest. In Greece, the season has just started, and exports remain stable.

In North America, the supply of red and white onions is limited, but is expected to improve with the start of the season in Texas. In South Africa, local brown varieties are receiving a premium, although the north of the country has been hit by rains and drying problems.

Egypt ended the export season with a surplus and weak demand, and India is recovering volumes thanks to increased production and the abolition of export duties. New Zealand has been allowed back into the Indonesian market without fumigation.

Tags: prices, onion