Northwest onion crop stressed by heat

A run of hot weather that has stressed the Northwest onion crop is expected to reduce yields and set up an active market for storage onions.

Shay Myers, CEO of Owyhee Produce, Nyssa, Ore., said that as of July 13 the Treasure Valley region of Idaho and eastern Oregon has exceeded 100 degrees for 20 days so far this year, up from the historical annual average of six days reaching 100 degrees or more.
“We’re starting to see signs of damage and yield reductions in the field,” Myers said, noting that the iris yellow spot virus has been evident in some fields in the Northwest U.S.

Onion fields that are stressed by heat are more susceptible to the virus. 

Because of the heat, Myers said fields may mature about a week earlier than normal.

“By mid-August, there will be multiple shippers going here in the Treasure Valley,” he said.

Acreage in the Northwest could be slightly down compared with a year ago, Myers said, possibly a few percentage points lower.

Meanwhile, Myers said yields could be 25% lower than a year ago.

Foodservice demand

After a long lull caused by the COVID-19 pandemic, Myers said foodservice demand for onions is increasing and normalizing, especially since the beginning of June.

Market conditions for onions were firming in July. 

According to the U.S. Department of Agriculture, the average shipping point price for onions was $14.72 per carton on July 10, up from $11.68 per carton on June 5 but down from $16.28 per carton on July 11 last year.

Myers said July 13 that the jumbo market increased $1.50 per carton in the past week, strengthening as Mexican supply waned.

“I think it has to be a higher price year,” Myers said. “I don’t think it’s a higher margin or higher profit year.”

Myers said growers are experiencing costs of 20% to 25% higher on inputs such as pallets and packaging. 

“Even if we are going to maintain the status quo as far as the returns to the farm, that’s going to have to mean double-digit (percentage) increases in our pricing.”

High prices for trucking are a concern, Myers said, noting loads from California to New York were as high as $13,000 to $14,000 in July. High truck rates have created a “regionalization” of the onion market, with cheaper transportation rates from New Mexico and northern Mexico to southeast markets, compared with California, serving to boost demand in those regions.

Oregon outlook

Dave Osborne, spot sales manager for River Point Farms, Hermiston, Ore., said the firm expects to start its storage onion crop by the beginning of September.

“The (storage onion) crop is looking really nice,” he said.
Shipments of storage onions are expected to continue until late May to early June.

The overwintered onion crop for the firm began the last few days of June, Osborne said, and was concluding about July 20.

Foodservice demand was increasing, Osborne said.

“People are going back into the restaurants, and we’re getting more foodservice business because of that,” he said.

Riverpoint Farms will feature special packaging for Breast Cancer Awareness Month in October.