MARKET
Idaho-E. Oregon:
Steve Baker with Baker & Murakami Produce in Ontario, OR, told us on Dec. 1 that the overall onion market has not seen too much of a change in recent weeks. “Demand has been fairly steady this week, about the same as the previous few weeks. I would say the larger size onions are in greater demand than the medium size onions.” He continued, saying the market is steady as well. “The market really hasn’t changed much these past few weeks,” Steve said, calling it “very steady at this time. Supplies still seem to be tight on super colossals.” And, he added, “Quality has been very good.” Another unchanged condition is that of transportation, which Steve said “continues to be a struggle every day like it has been for weeks!”
Dwayne Fisher with Champion Produce Sales in Parma, ID, weighed in this week, telling us on Dec. 1, “It was a great Thanksgiving, and we came back to a week that has brought plenty of business. Trucks remain tight and expensive, but some lanes have allowed for us to continue to use flats, so that has helped. Prices have strengthened for us on all sizes and colors, and this trend will continue as we move further into our limited storage inventories.” He went on to say, “I think what is interesting this year is customers are staying very loyal as they want to know they have a spot with you for their supplies. They are smart enough to know if they jump ship to someone down the road that might be a tick cheaper, they probably won’t get back in moving forward. That has a few effects on the market. A big factor in this scenario is there aren’t as many shopping calls. With less shoppers, some on the sales desks may conclude that there isn’t as much demand and are hesitant to move up in price. When you look at the amount of season left that we need to cover versus the inventories left and calculate record growing costs for our farms and growers, we need to be much stronger on price regardless of whether your phone is blowing up or not.” And, Dwayne said, “Another factor many might not be calculating is that, at least for our customer base, using foreign onions (Mexico, for example) isn’t an option. Companies have updated their supplier agreements with this language. As a company, we have been insistent that this language be included in order for us to be their onion supplier.” He concluded, “I suspect reports will come from NOA this week that will motivate continued strength in pricing.”
Dan Phillips with Eagle Eye/Central Produce in Payette, ID, told us on Dec. 1 that demand is good this week. “You know, demand is pretty even across the board,” he said. “Yellows and reds are moving well. Buyers are looking for all colors and sizes. We aren’t moving as many onions as last year at this time because we don’t have as many. We are in the managing supplies mode.” He continued, “Everything we are selling matches up just right with production, so it’s working out well.” On the market, Dan said it’s steady. “Things are good on the market,” he said. “Nice and firm. It’s all good.” But, he added, “Transportation, on the other hand, is not good, and it’s the holidays – so we know what that means. Look for a really bad next 30 days.”
Herb Haun with Haun Packing in Weiser, ID, said on Dec. 1 the week has been “pretty steady.” He noted that his customers are aware of limited supplies, and Haun Packing is looking to clean up in late February or possibly early March. Quality of this year’s storage crop is holding up well, Herb said, and he said the shed has been running mediums, jumbos and colossals. “We’re having a hard time keeping up on mediums,” Herb commented. He also said the Thanksgiving pull was very good, and he added, “Next week I expect to see the start of the Christmas pull.” When asked about the 2022 crop and if acreage will remain the same as it was this year, Herb said, “It’s kind of up in the air right now.” He said the growers “have options,” and he said, “I honestly think acres could be down a little in the area.”
Colorado Western Slope/Utah:
Don Ed Holmes with The Onion House in Weslaco, TX, said on Dec. 1 his Colorado grower will have supplies through the first week in January. “Colorado movement is good,” Don Ed said, adding his Centennial State shed is shipping yellows only now. “Utah movement is good, and supplies will go through January,” he added. “Utah still has a mix of whites, reds and yellows.”
Colorado Western Slope:
David DeBerry with Southwest Onion Growers in McAllen, TX, told us on Dec. 1 there is no change in his Colorado report – “It’s been one of the best seasons for yields and price in anyone’s memory,” he said. “Demand exceeds supplies available. We have plenty of transportation for what we’re shipping, and we’re still shipping all three colors.” David said he expects supplies to go through December, and quality has held up well. “Thanksgiving business was absolutely great,” he said.
Atlanta:
John Adams with John Adams Produce in Atlanta, GA, said on Dec. 1 his business continues to increase. Noting that he’s moving all sizes and colors now, John said the biggest demand is for jumbo yellows. “I’m moving a lot of Northwest and Idaho yellows right now. I’m also moving whites at a good price.” Transportation, he said, “is still bad.” The new company is negotiating year-round supply contracts, and John said he is working with operations in Texas so he can continue his peeled onion business. “I will also have onions out of the Imperial Valley and Central Valley of California,” he said. “And I’ll work with Georgia growers for Vidalias.”
