Spanish onion producers are accusing senders and importers of product from the southern cone of South America of causing a price collapse on the European market. Prices paid to growers for onions from Valencia have slumped to €11 a kilo, barely covering costs as product comes in from Argentina and Chile.
"Frosts in March delayed onions from Valencia by about 15 days," explained a spokeswoman for the regional producers' association Ava-Asaja. "We were expecting a good season as there was no carry over of European stocks, but as production came on stream slightly late, traders have turned to imports and prices have crashed now that Spanish product is available."
But Avicorn Imports's Lance Cornell points out the market is affected by other factors not least as there are distinct markets for cooking onions and sweet onions of the type from Chile and Spain. "The Tasmanian season has had a disappointing start in the UK as the Dutch, and to a lesser extent the UK season, was prolonged," said Cornell. "As a result of the crossover, onions mainly from New Zealand are being sold at 600p for 25kg rather than 800p."
Meanwhile, Paul Priest of importer Fresh World Ltd called on Spanish senders to focus instead on Germany. "The southern hemisphere season started a little earlier than usual and although there were a few blips in quality, the problems have been sorted out," said Priest. "There is good product available from Chile, New Zealand, South Africa and Tasmania."
Cornell said he remains optimistic for the season. "Chile has always had this opportunity on the UK market as new crop Spanish onions are not strong enough externally at this time of year," he said. "And my optimism is still there for the cooking onion season as once Dutch supplies finally dry up and we are into the full-blown southern hemisphere season by June, the situation should have stabilised to an acceptable level."
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