onions generic

A global shortage of onions could provide a windfall for growers and exporters in New Zealand and Australia this year.

According to industry sources major production areas across the globe have been affected by poor growing conditions, leading to a worldwide downturn in production.

Post monsoonal rains in India led to a shortage of the food staple there and caused prices to double in wholesale markets. This in turn caused food inflation to spike upwards, prompting the government to implement a number of strategies to bring prices down.

Japan’s major production area of Hokkaido has also suffered a slump in production, with one industry figure telling Fruitnet.com they heard production could have fallen there by as much as 35 per cent.

The source added that supplies from Thailand were also down.

In the Northern Hemisphere too volumes are reported to have fallen, with major producers such as Holland and Russia harvesting poor yields.

Anthony Bruford of exporter Aozora New Zealand says while it is still early in the season his company had been fielding calls from importers keen to secure New Zealand onions.

“It’s looking like it could be a one in 40 year season,” he said. “We’re already getting grower returns out of Japan of NZ$20 per bag and that is with the US product still in the market, so come March and April, when their stock has moved through the system, we are predicting substantially higher values.”

“Japan’s domestic crop from Hokkaido has been affected by rain so there are opportunities there,” he said. “Russia and India have had problems also, so there will be run-on effects and global onions will get pulled in one direction or another – this year there’s just not enough to go around. If you’re in the right place at the right time then you could do very well.”