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By John Harris
Fall has officially arrived, and October is here. Storage crop onions are in full-swing from all regions in the U.S. and Canada at this time. We do not have storage crop numbers yet; those should come out at the end of October once harvest is completely wrapped up and growers can let the dust settle and get a solid sense of what they have put away into long-term storage.
The growing year for all regions was generally a good one, despite a few hiccups here and there, and there have been very few harvest weather events across all regions like last year. That would suggest an ample supply of yellow onions to come. Current market levels are likely under the cost of production at the moment. It would be nice to see the market rebound as harvest is completed and we head into the last couple of months of the year and have holiday demand prop things up. It costs too much, and it is so much work for growers, that they shouldn’t have to work for no paycheck. Unfortunately supply and demand doesn’t ask what it costs to produce the crop as these markets settle in like they have.
The red onion market has held up remarkably well for nearly a year at this point, and that market is generally steady. Day-to-day, there is an appropriate supply to meet current demands and keep that market steady.
Whites have slipped slightly over the last month, but that market is still profitable. We also see this market, more often than not, rebound as the holiday ads start running. Starting the season, quality seems to be very high across the board from all regions. As we get into October, we should see nice onions and very few issues anywhere for the next several months. October 2023 was sluggish, and we may have another October like that ahead. With so many regions supplying good products right now, buyers are aggressive. They are looking for any competitive advantage in their markets, whether buying more regionally to save on freight or simply being very aggressive on what their FOB or delivered prices need to be to cut open market orders. The game doesn’t always seem fair, but the rules of engagement have been the same for a very long time.
I will update again in a few weeks and perhaps October buying will have come around, harvest will be complete and markets will have perked up or at least become steady enough to create a profit for our U.S. onion farmers that we rely on so much. As always, I value any feedback that you care to share. Have a great week, and I’ll be in touch soon.
Editors Note: John Harris is the president and founder of Paradigm Fresh and Colorado Cold Connect in Fort Morgan, Colorado. He can be reached at John@paradigmfresh.com.
