Holland Onion reaches eye-watering export volume

Once again, this is another great year for our Holland Onion. The export figures already topped 1.15 million tonnes and remain well ahead of the record season of 2017-2018, despite the long-haul logistical challenges.

The numbers of the second half of the year show strong growth partly due to the coronavirus crisis. We see a significantly higher demand from neighbouring European countries, with - due to the hoarding behavior - mostly acute deliveries to supermarkets. Home cooks in particular stock up onions on a large scale.

In Eastern Europe, some processors had to shut down due to the lockdown measures, which shifted the demand to the Dutch processors. Most striking is Croatia, who imported 2.6 million kilos whilst they imported nothing at all in the record season of 2017-2018. The same applies to Kosovo, who imported the considerable volume of 2.1 million kilos of Holland Onions. Also Poland, Moldavia and Montenegro were frequently at our doorstep.

Historic export event
Exports to India and its neighbouring countries, where our export competitors usually have total dominance, also continued into the second half of the year. India suddenly has the 129th position in the ranking of Holland Onion's export volume. Together with Bangladesh, Sri Lanka and other neighbouring countries, they account for 50 million kilograms this season. This historic export event is due to crop failures caused by climate problems. This highlights once again that the Dutch onion is extremely important for filling the gaps when there's a food shortage. Even the second largest onion producer in the world and serious export competitor for the Netherlands can suddenly be dependent on our Holland Onion.

Striking newcomers
There are a few striking shifts in the export top 20. Brazil, for example, is fully back in the top 10 with even larger volumes and they are in 7th place at the moment. Here too it was extreme weather conditions that caused a sudden demand for onions, which the Holland Onion fulfilled. Haiti and Indonesia dropped out of the top 20 and Malaysia is back in 4th position with the usual export volumes. During the Dutch King and Queen's state visit to Indonesia, the Holland Onion was also on the agenda and a path was opened to allow import of Dutch onions again. 

Long-haul destinations
The level of demand from long-haul destinations is more or less normal this season. The corona virus pandemic didn't have a clear effect. We as a Dutch onion chain might see the effects in the early stage of this export season. We do have to cope with the fact that the dollar supply was restricted in some places because many exchange offices were closed. And also the fact that the number of available (refrigerated) containers reduced considerably in mid-January after the lockdown of China. It was quite a challenge to find sufficient containers. Eventually, this lead to higher logistical costs which resulted in a higher onion price. The sudden price increase had a negative effect on the export demand and, together with the limited availability of export-quality onions, the lights went out for this market and everybody focussed on the new season.