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The 12-month profitability outlook from Northwest Farm Credit Services suggests profitable onion returns. According to the lender’s quarterly Market Snapshot report released in October, drivers in the industry include harvest delays, favorable prices and stable demand for onions.
This year’s Northwest onion production was lighter than historical averages, with spring planting issues causing harvest delays and impacting onion size profiles. Additional heat units in July and August improved onion quality.
The report goes on to say that favorable onion prices placed Northwest growers in a strong financial position to mitigate elevated input expenses and 2023 production cost uncertainties. Market demand is stable for all onion colors, with high demand for jumbos and larger. Producers with larger size profiles will benefit from high prices and strong demand, according to the report.