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Heavy rains in Southern Brazil during W50, including Ituporanga, São José do Norte, Irati, and Guarapuava, slowed down onion harvesting. In Guarapuava, rainfall reached 169 millimeters (mm), and in Ituporanga, 59 mm affected the harvesting pace. While onion quality remains good for now, further rainfall could reduce it. With the Cristalina harvest nearly finished, southern onions are in higher demand and are being transported to the southeast, driving up prices. As a result, prices for early hybrid onions rose by 16.3% week-on-week (WoW) in Guarapuava and 32.6% WoW in Irati. In Ituporanga, prices increased by 27.9% WoW, and in São José do Norte, they rose by 9.6% WoW. Future rainfall is expected to be significant, potentially affecting harvests further.
South Korean agricultural researchers have developed and patented a groundbreaking technology using magnetic resonance imaging (MRI) to predict the quality of stored onions. Announced by the Rural Development Administration (RDA), the innovation addresses a longstanding issue in onion storage. Onions harvested in May and June are stored in temperature-controlled rooms for up to eight months until the following spring, but the spoilage rate often reaches 25 to 40%. One spoiled onion can rapidly cause the deterioration of surrounding produce. Developed in collaboration with Chonbuk National University, the new MRI-based technology combines MRI data with shape standardization metrics and Red, Green, and Blue color analysis to assess the internal quality of onions. This technology is unique in its ability to integrate post-harvest physiological examination with image interpretation, making it versatile for predicting the quality and condition of stored onions.
Ukrainian onion prices began to fall in early Dec-24, primarily due to a drop in demand and the increased availability of lower-quality produce. Initially, onion prices were high, similar to those in Dec-24. However, a slight price decrease was observed after the first week of December. This price drop was due to the increasing supply of medium- and low-quality onions, which are less storable and have a faster rate of deterioration. As a result, the market was flooded with poorer-quality onions, leading to reduced demand. In W50, red onion prices stood between USD 0.24 to 0.38 per kilogram (kg), which is approximately 16% cheaper WoW and also lower than prices at the same time last year. Sellers are being forced to lower their prices due to the rapid deterioration of onion quality in storage. They are reducing prices to stimulate sales and clear out existing stock before further quality declines, hoping to move the inventory before it deteriorates further.
In W50, onion prices in India dropped significantly to USD 0.35/kg, reflecting a 12.50% WoW decline, a 23.91% month-on-month (MoM) decrease, and a 2.78% year-on-year (YoY) drop. This price reduction follows the arrival of new onions from the Kharif crop, particularly from Alwar, Rajasthan, starting in late Nov-24. With additional supply in the market, further price reductions are expected. The Indian government has been selling onions from its buffer stock at subsidized rates to stabilize prices and address previous price hikes, with over 4,850 metric tons (mt) transported by rail to key cities like Delhi to improve supply and ease market pressures.
Onion prices in the Netherlands dropped significantly by 6.25% WoW and 65.91% YoY in W50, reaching USD 0.15/kg, primarily due to increased domestic supply and reduced export demand. The country has experienced a larger-than-expected harvest, leading to an oversupply in the market. Moreover, competition from other onion-exporting countries, such as Egypt and India, has dampened demand for Dutch onions, particularly in export markets. The increased availability of onions, coupled with a seasonal drop in domestic consumption, has placed downward pressure on prices. Furthermore, the ongoing economic challenges, including inflation and currency fluctuations, have affected purchasing power, contributing to the significant price decline compared to last year.
In W50, Mexico's onion prices declined by 15.09% WoW, 27.42% MoM, and 54.31% YoY, dropping to USD 0.90/kg. This sharp decrease is mainly due to increased supply from the new harvest, particularly from key production regions like Sinaloa, which resulted in a market surplus. As the harvest season peaks, the availability of fresh onions has led to lower prices. Furthermore, reduced export demand, partly due to competition from other onion-exporting countries like the Netherlands and India, has further increased domestic supply. Seasonal fluctuations in domestic consumption also prompted sellers to lower prices to avoid excess stock.
Egypt's onion prices decreased by 8.82% WoW and 54.41% YoY, dropping to USD 0.31/kg, primarily due to a significant increase in domestic onion production. Favorable weather conditions led to higher yields, especially in substantial production areas like the Nile Delta and Upper Egypt, resulting in a more stable and abundant supply. Moreover, the Egyptian government’s efforts to improve market efficiency, reduce export restrictions, and enhance logistical access have contributed to better domestic availability, further putting downward pressure on prices. This combination of higher production and government policies to stabilize the market has led to a sharp price decline compared to last year.
In W50, Spain's onion prices dropped to USD 0.21/kg, reflecting a 4.55% WoW decrease, a 12.50% MoM decrease, and a significant 54.35% YoY drop. The decline is primarily due to an oversupply in the market, driven by an increase in planting acreage and a price decline in previous years, resulting in production outpacing demand. While demand for high-quality onions from areas like Navarre remains strong in both EU and non-EU markets, mainly due to modernization in sorting and packaging, the overall market is struggling with an excess of lower quality. These open-ground onions were sold for as little as USD 0.10/kg. The lack of demand from the industrial sector, including frozen food producers who have already secured their supplies, has worsened the oversupply situation, putting further downward pressure on prices.
Brazilian farmers should invest in robust drainage systems to prevent waterlogging in fields and schedule harvesting during drier weather windows whenever possible. Simultaneously, improving transport infrastructure, such as roads and logistics systems, ensures that harvested onions reach markets quickly, reducing spoilage during transit. By implementing these strategies, producers can maintain a consistent supply to markets, preventing price spikes caused by decreased availability. Moreover, maintaining high-quality produce boosts consumer confidence and supports long-term market stability. Farmers can collaborate with local governments and private sectors to fund and implement these initiatives, ensuring resilience against future climate challenges.
Egypt, India, and Mexico often experience an oversupply of onions during peak harvest seasons, leading to price volatility in domestic markets. To mitigate this, producers and exporters should identify key international markets experiencing shortages, such as parts of Europe and Southeast Asia, and prioritize exports to these regions. For instance, India could re-establish connections with Southeast Asian countries during peak seasons, while Egypt could strengthen its presence in European markets facing reduced domestic onion production. This strategy reduces domestic oversupply and allows producers to capitalize on higher prices in regions with limited availability. Diversifying export destinations minimizes the risk of reliance on a single market and helps stabilize domestic and international prices, ensuring a steady income for farmers and traders.
Technological innovations in post-harvest storage can significantly reduce onion spoilage and improve quality control. Implementing such technologies in major onion-producing regions like India, Mexico, and Egypt can be transformative. Furthermore, investing in improved ventilation and temperature-controlled storage facilities can enhance the shelf life of onions. By reducing spoilage by 25 to 40%, these innovations ensure that only high-quality onions reach markets, supporting price stability and reducing waste. Producers can also use this data to refine storage practices, further optimizing the supply chain.
Sources: Tridge, Agronaplo, East Fruit, NoticiasAgricolas
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