Market gap between early and late onions

From abundance to shortage. That sums up the current situation in the European onion market, which is going through a critical phase after unexpectedly running out of stored supply
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The perfect storm has emerged: poor quality in stored onions, constant rain, and a certain lack of foresight. Just weeks ago, storage facilities across Europe were full, but the poor condition of much of the stock led to its rapid removal from the market. Since May, losses have been significant.

The paradox is clear: early onion sowings were reduced under the assumption that enough product was in stock, but when it became evident that much of the stored crop didn’t meet quality standards, supply chains broke down. Since import contracts from the Southern Hemisphere (South Africa, New Zealand and Australia) were signed based on forecasts of European abundance, imported volumes were very limited. Responding to this situation is not immediate: bringing onions from these origins can take nearly a month, creating a gap in the market between early and late onions.

Spain steps up

With the market undersupplied, early Spanish onions and a few good-quality stored batches have taken centre stage again. Field prices, which weeks ago barely reached €0.10–0.12/kg, have now exceeded €0.50/kg. However, the campaign won’t be free of difficulties: persistent rain in March and May has hindered harvesting, affecting calibres and limiting supply.

In Castilla-La Mancha—Spain’s top producing region—storms have especially damaged mid-season onions scheduled for harvest in June. For transplanted onions, the rain delayed sowing and forced many growers to switch from direct seeding to seedling trays, especially in Albacete, where direct sowing is more common. All this adds uncertainty around the final cultivated area for the 2025 campaign.

The invisible enemy: internal damage

One of the major structural challenges in the Spanish sector is internal onion damage—an alteration of the bulb that isn’t externally visible and damages both product image and marketability. PROCECAM (Castilla-La Mancha Growers Association) estimates that up to 70% of its budget is spent on researching this phenomenon. The issue typically develops in storage and can be triggered during transport or due to temperature changes.

Research points to Fusarium proliferatum, although other bacteria may be involved in opening the bulb to fungal infection. The problem is that it doesn’t show externally: an onion may appear perfect until it’s cut open. This has caused major tension with retail chains, which have raised their quality standards to such a level that a single complaint can lead to the rejection of entire shipments.

Mixed consumption: Europe rises, Spain stagnates

 

While onion consumption is growing in countries like Germany and the UK—possibly linked to trends like veganism or the popularity of vegetable-rich dishes—the picture in Spain is different. Consumption remains stagnant and mostly limited to older age groups. Per capita consumption stands at 16–18 kg annually, with lower demand among younger people.

To reverse this trend, the sector is focusing on promoting Spanish-grown onions, particularly those certified under the PGI Castilla-La Mancha Onion label, which has grown from one producer in 2023 to ten in 2024, with certified volumes jumping from 3 to 40 million kilos. The forecast for the upcoming season exceeds 100 million kilos, confirming a clear commitment to differentiation and food safety.

The sector is not immune to the broader challenges facing agriculture: rising costs, labour shortages, and planning difficulties. Despite the poor economic results of the previous season, many growers have opted to continue planting in hopes of a recovery, but the weather has once again disrupted the early stages of the campaign.

RELATED NEWS: Imported onions boost sales on supermarket shelves

Currently, Spanish onion distribution is split into three parts: domestic fresh consumption, fresh exports, and the industrial channel (peeled and chopped in various formats), the latter being a lifeline in many campaigns. The HORECA channel has also been essential in keeping the sector afloat in difficult years.

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