Rising costs and falling profits are expected to prompt some Peruvian sweet onion growers to reduce acreage this season, but major U.S. importers say their programs should remain virtually unchanged.
“Pressure on ROI has been a challenge for the Peruvian sweet onion industry over the last few years, with the sweet onion market generally failing to keep up with inflation and increased operating costs,” says John Shuman, president and CEO of Reidsville, Ga.-based Shuman Farms. “But our program has not cut back any at this time; we expect to have sufficient supplies of Peruvian sweet onions available throughout the season.”
Quality of Peruvian onions from Shuman Farms looked “really good” as of late August, Shuman says.
“We are seeing a bit higher percentage than normal of smaller jumbos to large mediums on the front half of our crop, but we believe this year’s crop has an average size profile overall,” he says.
G&R Farms, Glennville, Ga., didn’t reduce its Peruvian onion program either, says Steven Shuman, general manager and vice president of sales.
“Our planted acreage remains consistent with last year,” he says.
The outlook for the coming season was positive.
“Our program is tracking close to plan, and we expect to have the volume and size mix needed to support our retail programs,” Steven Shuman said in late August. “We’re pleased with where our program stands heading into the season.”
Glennville-based Bland Farms actually increased its acreage this year, says Delbert Bland, owner and CEO.
“One of the reasons we’re successful is that we grow what we sell, so we don’t have to worry about contracts and having too many onions,” he says. “Our boots are on the ground in Peru, and it’s on ground we own.”
Bland Farms was already receiving premium sweet onions from Peru in August, and Bland says shipments to customers should start in mid-September, when the Vidalia season closes.
“So far, quality looks good, and sizing is consistent with last year,” he adds.
)
Market Measure
Higher operating costs and a reduction in the industry’s total acreage likely will result in higher market pricing for Peruvian sweet onions this season, John Shuman says.
And a 12.5% duty that the U.S. imposes on Peruvian onions — because Peru does not ban imports produced using forced labor — also must be taken into account, Steven Shuman says.
“As with any change in import costs, there could be some impact on the overall cost structure, but pricing is influenced by a number of factors, including supply, demand, freight, fuel and other inputs,” he says.
Peruvian growers shipped about 320 million pounds of mostly sweet yellow onions to the U.S. during 2023-25, according to USDA’s Economic Research Service. That was a 5% year-over-year increase.
The season runs from September through March, when Vidalia onions are not available.
Connecting With Consumers
Importers were tweaking their marketing programs this summer to maintain consumer interest in sweet onions.
G&R Farms is rolling out a refreshed brand look following its 80th anniversary, updating a historical G&R Farms logo for a more modern look, Steven Shuman says.
“The refreshed look is being introduced across the company’s consumer packaging, boxes, retail bins, point-of-sale materials and other marketing materials,” he says.
G&R has also updated its website and social channels to reflect the refreshed look in its digital presence.
Bland Farms has hired Cyndi Rodgers from outside the industry as director of marketing, and Michele Marin leads brand strategy, marketing and PR, overseeing initiatives ranging from trade advertising and retail programs to consumer content and press, Bland says.
“Together, the team has built out digital and social programs, developed influencer relationships and created more consumer-facing content than ever before,” he says.
Shuman Farms invited nationally recognized influencer Courtney Cook to visit its facilities and share its farm-to-table story across her platforms during the Vidalia onion season, John Shuman says.
“The campaign generated more than 6.4 million views and inspired countless followers to purchase and taste RealSweet Vidalia onions for themselves,” he says.
The company plans to keep the social media momentum going during the Peruvian season.
Shuman Farms also offers a full-range of marketing materials for its retail partners designed to drive sweet onion sales, including seasonally tailored merchandising insights, in-store POS and social media support, John Shuman says.
A Seasonal Bridge
As importers refine their programs to keep shoppers engaged, retailers continue to look to Peru to fill the Vidalia void.
Peruvian sweet onions play an important role during the winter for the 267 Marlborough, Mass.-based BJ’s Wholesale Club locations, says Ryan Johnson, senior category merchant, produce.
“They help bridge seasonal availability while maintaining the quality and consistency our members expect,” Johnson says. “They give us a differentiated sweet-onion offering when other domestic programs are less prevalent, and their versatility makes them relevant across a wide range of meal occasions.”
The chain sees a seasonal sales lift around Thanksgiving and Christmas, but overall, the Peruvian sweet onion business tends to remain relatively stable throughout the season compared with the more pronounced seasonality of the Vidalia deal, he says.
