export growth stopped by nature

Halfway through the export season 2018/2019 the expectations have all become a reality. For the first time in the past four years the export of the Holland Onion is lagging behind by 17% compared to the impressive export numbers of the previous season and even the two seasons before that. The export figures have thus returned to the level of 2014.

With 40% less crop yield this is a logical result. The extremely dry spring and summer have caused the onion market to become overheated. The prices are high, since the availability is low. Because of the high prices of the Holland Onion in combination with the yield being 1,2 million (metric) tons lower in Europe, Chinese onions are now coming onto the market. In addition, onions from New Zealand, Chile, Argentina, South Africa and Egypt will also come onto the European market to bridge the gap. The Holland Onion with its shiny, round skin will have to prove itself once again next year to regain the market share. Therein lies a joint challenge.

The Holland Onion has suffered greatly as a result of the relentless, extreme warmth en drought. The crop does not have a deeply rooted root system, so it cannot reach the deep water and the heat causes the ageing to accelerate. Irrigation – if at all possible – comes with its one quality risks, while the use of pesticides against the high insect burden, sprout inhibition and soil fungi was nearly impossible.

cross-sector thinking
Nature has made it clear to us that strategically important steps have to be made in order to stay successful as farmers and retain our export position as world leader. This means plant breeding with a focus on a strong root system and an effective water management. Sustainable spreading of cultivation areas, protecting the soil and ‘Water inclusive thinking’. Thinking in terms of new opportunities, as we have done for centuries in the Netherlands. Nature has given us a wake-up call. In 2050 we are going to have to produce at least 150 million (metric) tons of onions for a world population of 10 billion people, compared to a production of approximately 80 million (metric) tons now. 

Looking at the top 20 of the first half of the export season, it is clear that the numbers are lower than we are used to. Over 14 countries are clearly underperforming compared to the previous export season. Out of all the long haul destinations our Holland Onion has travelled to, only Haiti, Congo and the Dominican Republic are showing improved results, causing the last destination to make its way to the top 20 for the first time. 

growth in European sales
Close to home we did export more onions to Great Britain and Germany, since the yields in both of these onion producing countries was disappointing just like in the Netherlands. The same can be said for Poland, Finland, Norway, Hungary, Serbia, Greece, Slovakia, Slovenia, Kosovo, Latvia and Switzerland. Strikingly, the export to Italy quadrupled while the export to the Czech Republic doubled.