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Northwest Farm Credit Services’ 12-month profitability outlook suggests “slightly profitable onion returns.” According to the lender’s quarterly Market Snapshot report released in April, the short supply of remaining onions positions Northwest producers to receive favorable prices for early-season onions. However, while onion prices are strong for remaining onion stock and the upcoming crop, rising input costs are driving up the cost of production and narrowing profit margins.
The report goes on to say that the Texas onion crop that hit the market in mid-March is dominated by medium onions with sizes small at the start of the season, noting that high prices and retailer demand are enticing producers to harvest early. This effect is likely to continue and therefore likely to result in reduced yields and continued tight supply until harvest of the 2022 Northwest crop is in full swing.
