Strong onion markets expected to continue

(File image)

Strong onion markets this fall seem to be setting the tone for a firm storage onion market outlook throughout the winter.

The fob market for Idaho-eastern Oregon onions was trading at $15 to $16 per 50-pound sacks of yellow onions on Nov. 4, similar to $14 to $16 per sack at the time last year. However, the early November market was more than double the $6 to $6.50 fob reported two years ago.

Prices may increase as the storage season progresses. For the 2021-22 season, the USDA reported the average U.S. onion fob peaked at $21.66 per carton in February.

Foodservice supplier Markon reported steady market conditions for onions in its Nov. 6 market outlook report.

“Medium and jumbo sizes are ample; colossal and super colossal onions are adequate,” the report said. "Quality is excellent: stocks possess solid, globe-like shape and firm texture.”

Supplies running behind

Total U.S. onion shipments for the week of Oct. 23-29 totaled 2.52 million 40-pound carton equivalents, down 9% from 2.75 million cartons the same time last year. 

Domestic truck shipments for the week of Oct. 23-29 accounted for about 1.79 million cartons, domestic rail shipments accounted for 97,000 cartons and domestic piggyback shipments accounted for 6,000 cartons.

Top domestic suppliers of onions in late October were Washington, Idaho, Oregon, New York, California, Utah, Michigan, Colorado and California.

Washington accounted for 837,000 cartons of onions the week of Oct. 23-29, or about 33% of total shipments in late October. Idaho accounted for 461,000 cartons or about 16% of total supply. Oregon accounted for 124,000 cartons or about 6% of total shipments.

New York accounted for 171,000 cartons or about 7% of total onion shipments in late October. Colorado accounted for about 97,000 cartons or about 4% of total shipments.

Joshua Frederick, general manager of Snake River Produce, Nyssa, Ore., said many Northwest U.S. onion growers saw shorter-than-expected crop volume.

“We are short supplies even worse than last season,” Frederick said. Growers have been hit by higher costs, with input costs up double or triple several years ago, he said.

Import role

Onion imports accounted for 624,000 cartons during the week of Oct. 23-29, down from 676,000 cartons the same week last year. Imports accounted for about 25% of the total U.S. onion supply in late October.

Peru alone accounted for 518,000 cartons or about 21% of total U.S. onion shipments in late October. Other countries sending onions to the U.S in late October include Canada, Mexico and Spain.

Elevated markets

Despite the elevated markets, Frederick said retailers can effectively promote onions by setting up end-cap displays.

Foodservice demand is growing, Frederick said.

“Starting this past six months [foodservice] demand is come back around but still not like it was before the pandemic,” he said. Fast food demand is up, adding to the raw/fresh side of demand, he said.

Made with Flourish

Made with Flourish

Tags

 

Latest News

How new research could prevent frost damage in orchards
How new research could prevent frost damage in orchards

In this podcast episode, Advanced Agriscience's Collin Juurakko shares interesting discoveries he's made about how frost crystals form and how that lead to a potential solution for tree-fruit growers across the globe.

Cool Creations previews new products at AWG show
Cool Creations previews new products at AWG show

North Kansas City, Mo.-based Cool Creations LLC had two new products to show off at the Associated Wholesale Grocers' seventh annual Innovation Showcase, March 25-26.

Dole, Fresh Express nix sale of fresh vegetables division
Dole, Fresh Express nix sale of fresh vegetables division

Following Department of Justice concerns about competition in the packaged salad market, the companies have abandoned the proposed $308 million deal.

Fresh Del Monte named to most trusted companies list
Fresh Del Monte named to most trusted companies list

Fresh Del Monte is among the honorees on the Most Trustworthy Companies in America 2024 list, recognized for a commitment to quality, sustainability and innovation in fresh produce.

Improved conditions for West Mexico produce may arrive with spring
Improved conditions for West Mexico produce may arrive with spring

West Mexico growers faced a tough fall/winter season, but distributors believe things are looking up for spring with increased supplies and more reasonable prices.

What’s next for retail foodservice: Retailers dish up insights in free webinar
What’s next for retail foodservice: Retailers dish up insights in free webinar

"Impact Retail Foodservice 2024" will gather industry experts to discuss opportunities and challenges, as well as share insights for driving growth in the year ahead in one of the hottest departments in grocery.