Home Australia Onion industry looking for new markets overseas to avoid local oversupply

Onion industry looking for new markets overseas to avoid local oversupply

Onion industry looking for new markets overseas to avoid local oversupply

Some of Australia’s largest onion rising areas are feeling nervous a pair of capacity oversupply of the pantry staple.

Key positive aspects:

  • Onion growers are facing an uphill battle to shift their vegetation this season
  • The industry is looking for new markets in Asia to avoid domestic oversupply
  • Even with the glut, supermarket onion costs are final trusty

About 37,000 tonnes of onions had been exported final yr, equating to 15 per cent of the national slice.

Early Newspaper

That changed into as soon as a mammoth 100,000 tonnes less than 2019.

The foremost markets of Europe and South-East Asia proceed to suffer extended lockdowns and a decline in world travellers, which implies they are taking even less of the slice.

The fallout is that all those onions are destined for the domestic market in a yr where most states are harvesting bumper vegetation.

two hands hold out four onions ready for harvest in a paddock

Onions ready for harvest at a paddock in northern Tasmania.(ABC Rural: Laurissa Smith)

“Looking at our vegetation it appears to be like to be admire we’re going to be above our moderate yields,” acknowledged Tasmanian vegetable grower Cameron Moore.

“It appears to be like to be admire all americans else across the nation has been the identical.”

Australia’s largest manufacturing areas are in South Australia and Tasmania.

Mr Moore exports about 15 per cent of his slice from his Scottsdale farm within the order’s north.

“We’re a somewhat miniature domestic market. We enact count intently on exports,” he acknowledged.

Grocery store costs unchanged

Regardless of a drop in exports final yr, onion costs remained reasonably trusty at the supermarket.

They proceed to retail for spherical $3 per kilogram.

Nevertheless apprehension procuring first and foremost of the final yr seen a clean spike within the seek information from for onions.

a pile of onions in a supermarket

Grocery store seek information from for onions changed into as soon as extremely sturdy final yr at some stage within the pandemic.(ABC News: Brian Hurst)

Onions Australia CEO Lechelle Earl acknowledged it helped shuffle product that may perchance well well also no longer rep a dwelling overseas.

“Now we own furthermore considered an elevate in dwelling cooks with more americans the exercise of onions, which we disclose is implausible.”

Ms Earl acknowledged gross sales thru Melbourne final yr did suffer at some stage in Victoria’s protracted lockdown.

With the good deal within the food service commerce we seen a noticeable decrease in onion gross sales, thru the markets predominantly,” she acknowledged.

Wholesale markets feeling the pinch

A yr within the past, growers received spherical $15 for a 10 kilogram secure of onions into Sydney and Melbourne. That mark has now halved.

“In the occasion that they’re low-price sufficient americans will exercise a pair of additional onions,” Mr Moore acknowledged.

“Nevertheless it completely’s no longer admire stone fruit when they’re basically low-price [and] americans lap them up.

Several people stand in front of a conveyor belt sorting through onions inside a packing shed

Internal the Premium Original onion packing shed at Forth.(ABC Rural: Lachlan Bennett)

Onions Australia is now organising a device to rep more world investors.

“We’re working with Horticulture Innovation to compose rising markets overseas together with Vietnam and Myanmar,” Ms Earl acknowledged.

Thailand changed into as soon as the largest overseas buyer of Australian onions final yr, adopted by Taiwan, Belgium, the Netherlands, and the United Arab Emirates.

a man holds a couple of onions in front of timber bins filled with onions

Jim Ertler from Tasmanian vegetable processor Premium Original is tipping any other drop in seek information from from some onion markets.(ABC Rural: Lachlan Bennett)

Tasmanian vegetable processor Premium Original exports shut to 25 per cent of its slice.

Co-proprietor Jim Ertler acknowledged to avoid issues with fascinating product, the commerce has taken a conservative methodology to the season by cutting its onion manufacturing by about 10 per cent.

“Open air of the supermarkets the market is a tiny weaker,” he acknowledged.

“We may perchance well well also perceive at deals that we most continuously would shuffle off … and shuffle product whereas we are able to.”

Onion industry looking for new markets overseas to avoid local oversupply