Although the export of Spanish onions has recovered after the harshest months of the COVID-19 lockdown, it is now at between 70-80% of the usual levels. The catering channel continues to be more affected, as it is currently operating at around 50% of its capacity.
“Hotels are not full, as is usually the case at this time of the year, and restaurant capacity is very limited. This has a significant impact on the demand, since around 35% of onion sales go to these channels,” says Luis Fernando Rubio, director of Procecam, the Association of Onion Producers of Castile-La Mancha.
In the current campaign, the onion acreage in Spain has been reduced by between 8 and 10% both for Medio Grano and Grano onions. It is the result of the poor results of the previous year, especially in the case of the larger sizes. Yields are also expected to be lower than in the previous season. The many consecutive hot nights have raised the concerns of producers, as this could further reduce the supply. “With the production falling this year, higher prices were expected, but the demand has also decreased due to the pandemic. Therefore, prices remain stable at the limit of profitability,” says the representative of Procecam.
At the end of this week, the earliest Grano or long-life onions will start to be harvested. "These onions have more skin and a more coppery and attractive color. They are highly demanded by the export markets, since they have a longer shelf life than Medio Grano onions, which allows large retailers to have a product in optimal conditions on their shelves. With this type of onions, Spanish exporters have a competitive advantage, since other origins, such as the Netherlands, do not have onions of these characteristics. We hope, therefore, that with the arrival of the long-life onions on the market, consumption will increase, despite the situation that the markets are going through. We are really at a critical point with the transition from Medio Grano to Grano onions. The markets have such a preference for Grano onions that the last batches of the Medio Grano are starting to push prices down.”
Luis Fernando Rubio says that before the campaign started, strict monitoring protocols were implemented against COVID-19, both in the field and in the packing plants, including periodic temperature controls for the workers. “Supplying a product with a guarantee of food safety has become more expensive, so we hope this will result in a higher sales price,” he says.