Spain’s onion acreage has increased by almost 20%, and yields have also grown considerably compared to last season, but the lack of active demand from export destinations due to the also high production in the rest of Europe has caused the price of Spanish onions to plummet, FreshPlaza informs.
“The market was already oversupplied in July. We thought that the balance could be restored from mid-August onwards, but the truth is that prices are still too low,” says Luis Fernando Rubio, Director of Procecam, the Castile-La Mancha Onion Growers’ Association.
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“Not only do we have around 30% more production compared to the previous season, but the acreage has been growing in the majority of European countries, and while they haven’t had large yields, they will at least obtain similar volumes to last season’s, with the exception of France, which has seen its production fall due to severe phytosanitary issues,” says Rubio.
According to the Procecam representative, many of the producers who have started growing onions this year have done so freely, without supply contracts with traders or importers, and without the packing capacity to be able to harvest the production at the right time, which has led to early and unplanned harvesting.
“The majority of buyers are in no hurry to supply themselves with Spanish onions because there has been a large enough European production and, moreover, there is a great supply in the free market, so prices have fallen significantly. The situation is difficult, but fortunately, we have a high percentage of high calibers which we hope to be able to continue selling well, as we are the only ones in Europe capable of offering them,” says the Director of Procecam.
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