Dutch Onion Export 2022/23 Historic Season; Lower Volume but Higher Value

According to The GroentenFruit Huis Association's recent trade data for the 2022/23 Dutch onion export season, which went from Week 27 of 2022 to Week 11 of 2023, the volume of exported onion fell by 7.7% YoY to 958 thousand mt. The decline in export volume was driven by a substantial decline in onion harvested in the Netherlands for the season. However, due to an overall unprecedented onion shortage, prices in Europe have skyrocketed in several markets in a short period of time. Reduced yields in most of the onion-producing countries in Europe have generated a greater demand for the few good quality Dutch onions, resulting in skyrocketing prices reached over the season.

According to the recently published final crop estimate of Statistics Netherlands, the gross yield of seed onions in 2022 amounted to 1.2 million mt, a decrease of 17% compared to the previous year or 300 thousand mt less. This would correspond to the lowest value since 2018. A total of 1 million mt of yellow and 0.2 million mt of red seed onions were harvested. The decline was mainly driven by a significant reduction in the planted area and yields. The area under seed onions fell by 9% to 27,400 ha in 2022, and the hectare yield of seed onions fell by 9.3% to 44.5 tons per hectare.

Source: CBS Statistics Netherlands

The onion harvest reduction in the Netherlands also coincided with global reduced output. Western and Central Europe and the Central Asian regions also experienced a severe shortage in their onion supply. Climate change and a decrease in the area of ​​agricultural land have led to a reduction in onion yields and lower onion stocks around the world. As a result, onion prices in Europe skyrocketed in main importing markets such as Georgia, Poland, Ukraine, and Moldova.

By February 2023, the wholesale price for onions in the Netherlands reached a record high value of 0.65/kg. Reduced yields in most of the onion-producing countries in Europe have generated a greater demand for the few good quality Dutch onions, resulting in a severely limited supply in the Dutch market.

As of week 11 of 2022, Dutch onion exports amounted to 958 thousand mt, a 7.7% YoY reduction. However, the notable trend for the season was that less volume was shipped to traditional markets in Africa, while larger volumes were sent to other European markets with more significant purchasing power. The growth in exports to Senegal and Ivory Coast is seriously lagging behind last season, with a 7.5% YoY decline and 21%, respectively. The decline in growth in Ivory Coast and Senegal is directly related to the exceptionally high prices.

Source: GroentenFruit Huis Association

However, exports to other European markets have substantially increased in volume. Exports to Great Britain remain unprecedentedly high and have even increased by 10% to 112 thousand mt. Spain has imported 18 thousand mt this season for a 120% YoY increase, similar to Belgium, where exports increased by 65% YoY to 45.8 thousand mt. The upward trend in exports actually applies to all neighboring European countries such as Poland, Germany, Portugal, France, and Ukraine.

Due to the higher prices during the MY 2022/23, there was a clear shift in the Dutch export markets. Although the top markets remained Senegal, Ivory Coast, and Great Britain, there has been a reduced export volume in all African markets. The shortage in Europe of approximately 1 million mt of onions meant that the second half of the export season was focused on Dutch supply with high prices.

According to Dutch Onion Association, onion exports from the Netherlands in MY 2022/23 may exceed USD 550 million in revenue for the first time in history. The same year that the volume shrunk by 7.7% YoY. The golden yellow Dutch onions have never been sold for the price they reached this year, which was great news for Dutch growers. With increasing consumption and declining production all over Europe, there are great opportunities for the Netherlands in the global onion market.