Initial reports suggest a promising year for southern hemisphere onions. Highly developed growing areas and continuing investment in seed have resulted in finely honed operations in New Zealand where growing conditions have been good, despite some cold nights that inhibited growth.
“There have been no reports of diseases or pests this year,” says Fresh World’s managing director Colin Galbraith, “but heavy and prolonged rain - up to 12 inches in a 10-day period in some growing areas at harvesting time - has meant that onions harvested prior to the rain were in good condition while those still on the fields, which had been undercut, had a high risk of staining and possibly disease.
“There is always a danger that Aspigilas may be present in these conditions and it remains to be seen if there is any significant problem with this. It has to be emphasised that this type of problem will be localised and is not a general one.”
Prior to the cold weather Fresh World expected it would have a high level of onions over 90mm, but that is no longer the case. “Most supermarket specs do not require onions over 90mm, so this is not detrimental to cost,” says Galbraith. “Only a small amount of weight has been lost per acre. The onions, which will be shipped for use later in the season are those which have a potential question mark over them, however the early onions we have received have been very good indeed and there are no signs of any problems.”
European trading expectations are forecast to be down on last year, says Galbraith. “Although the market is a little reticent to commit itself in the UK based on the experience of oversupply in 2003, that reticence may turn out to be at the buyers’ cost as the volumes of onions will not be there,” he says. “With other areas, particularly Tasmania, Argentina and South Africa also suffering heavy rainfall, and with South Africa already showing signs of disease, quality product may be at a premium and therefore those holding off in the hopes they might pick up a bargain may not be lucky unless they are willing to compromise quality specifications.”
Gerard Hoekmanat at Dutch exporter Mulder says expectations are for normal quantities this year. “Things may be a little short from New Zealand because of heavy rainfall, and there have been a few problems with early arrivals but overall the sizing is fine. Australian produce will arrive in the next two weeks and I believe the situation is similar over there - in that there has been a lot of rain. So far, nowhere in the southern hemisphere has been too bad.”
Since the raw packing market is not increasing, in the long-term New Zealand may have to consider that the processing market is where expansion will take place. “Whether it is feasible to produce a low cost volume product and then pay very high shipping costs to deliver to processing outlets for the summer period remains to be seen,” says Galbraith, “but at this time is unlikely to meet with success as a planned crop. It is more likely to be an alternative outlet on a year-by-year basis for inferior skinned samples or in the case of serious over-production, to take off spare capacity from the market.”
In the last 12 months Fresh World has increasingly focused on technical and shipping issues. “Sizing is the primary focus, enabling us to meet the demands of the UK supermarket trade and we also need to be able to deliver high quality product in prime condition after shipping it 12,000 miles,” says Galbraith.
“With the introduction of EurepGAP, growers and packhouses in New Zealand have upgraded both their facilities and operating methods. Fresh World has bought into its grower group and is now a shareholder in the production company in New Zealand so the marketing arm can work hand in hand with the growers. This gives the customers greater comfort in knowing that by talking to Fresh World in the UK they are talking to the growers in New Zealand. Taking partnership one step further means that the marketing company is an integral part of the production company and that distance is eroded and the supply base can be both planned and reactive to its customers without any delay.
“Fresh World expects to import more than 3,000 tonnes of New Zealand onions this year - an increase of 50 per cent on last year - so it is bucking the trend of reduced volumes. The overall volume to the UK could be down by about 10 per cent on last year, if reports are true.”
Overall, investment in New Zealand’s onion sector continues. “Many growers have upgraded their handling, grading and storage facilities in the past 12 months and this has given them the ability to upgrade to tight specifications,” says Galbraith. “The development of seed continues as does development of the shipping methods for onions which is in constant refinement year on year.”
New Zealand’s onion industry is highly developed and centred on a few main growing areas. “In general growers have good personal and business connections with the UK, so although they are 12,000 miles away they have a good understanding of this market and also increasing experience with the rest of Europe,” says Galbraith. “The UK market is changing rapidly as up to even three or four years ago the wholesale trade would take a large quantity of netted onions (20 kilos). That trade has been reduced significantly as the wholesale trade is focused on price issues and therefore many buyers in the summer period would prefer to buy lower quality but cheaper product than pay £2 or £3 per bag more for very high quality storable new season product.
“New Zealand with its high shipping costs has concentrated on high spec product for use by the multiples and this means that if volumes are reduced in the UK because part of the market cannot or will not pay the price then they will look elsewhere for customers for the volume lost here. Exports have been developing more and more in Europe, but companies are now becoming more aggressive in selling to markets closer to home, other than traditional buyers such as Japan. In particular, heavier quantities are going to Malaysia this year.”
Oso Sweet onions from Chile continue to make their mark on the market. Victor Phaff, marketing manager at Oso Sweet Onions in Europe, says quality has been excellent, with sizes bigger than normal. “The onions grew too big to be sold as normal sizes and were exported as Jumbo’s and Colosso’s to the US,” he says. “For this reason we had to end our season one month earlier on March 15.
“The quality has been excellent and the sugar content was higher than last season,” he adds. “This is due to good growing conditions with warm days and cold nights so the sugar levels could develop well.”
France is a growing market for sweet onions, says Phaff. “The demand for sweet onions is growing in Europe. In the US 25 per cent of the onion market is already based on sweet onions. True sweet onions are difficult to grow. Chile with its suitable climate can be considered as having the best growing conditions for sweet onions. Some mild onions for example, from Spain are sold as sweet onions by the trade. These are mostly mild onions with a sugar content under 8 per cent. Another important characteristic of sweet onions is that a true sweet onion has a peruvic acid count of under 4.5 umol/ml. The peruvic count determines the pungency of the onion.
“Next season we hope to expand our market share of Oso Sweet in our market window during the first four month of the year. We also hope to receive some containers during December. Nowadays there are a lot of different types of onions but the one that meets and exceeds all the qualities of sweet onions is Oso Sweet.”
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