Featured image: Riverfront Produce in Payette, ID, yellow onions ready for packing on Dec. 14, photo courtesy of OnionBusiness.com
MARKET
Washington:
Matt Murphy with L&M Cos. in Raleigh, NC, told us on Dec. 14 that demand is good this week. “We are very busy this week,” Matt said. “Buyers are into the Christmas pull and we are moving all three colors and sizes, but jumbo yellows and larger are pretty hot right now. As for the market, it’s been steady and we are hearing that it may increase soon. I think it has a lot to do with the fact that shippers are going to see how much they have left in storage here before too long and after the holidays the availability is going to get tight and that’s when we might see the market on the move upward. It’s hard to know for sure. We are in a bubble right now. We have been so crazy busy. We’ll run full days next week. Then four days during the week of Christmas and the week of the New Year. Then around January 8th or 9th, we’ll assess where we are and go from there. I will say, our quality has been great!”
Washington/Oregon/Peru:
Dan Borer with Keystone Fruit Marketing reported in from his office in Walla Walla, WA, this week. “Business is typical for this time of year,” he said. “After Thanksgiving and for the first of December, sales are somewhat flat. Consumers are looking for the best deals on holiday shopping and the best deals on Prime. Come next week, things will pick up.” He continued, “You do see retailers going pretty strong with ads for fruits and vegetables for Christmas, so they are ready. That’s a good sign.” Dad said, “We have had a very good market too. It’s remained steady at great pricing, and that’s the best we’ve seen in years. We’ve had great quality all along as well. So not much to complain about.” On Keystone’s sweet onion program, Dan said it’s going well. “Our sweet onions are moving well, and pricing has been very good” He added, “We haven’t been impacted by the political unrest in Peru so far, but there is bound to be some problems with all imports out of the country due to the situation there. So that’s definitely something to keep an eye on.”
Idaho-E. Oregon:
Paul Reeping with Riverfront Produce in Payette, ID, told us on Dec. 14 that demand is slightly down this week. “Demand is less this week than it has been for this time of year in the past,” Paul said. “I think it has something to do with the lack of confidence in the economy, although we do anticipate the demand to pick up next week, just before Christmas. Of the demand we are seeing this week, colossals and extra-large jumbo yellows seem to be the hottest items. The market seems a little volatile too.” On quality, Paul noted, Riverfront has been fortunate. “Our quality has been excellent all season long,” he said. “We’ve been very lucky.” When asked about transportation, Paul said availability is good. “You can get the trucks easy enough, but the rates are expensive as usual.”
Steve Baker with Baker & Murakami Produce in Ontario, OR, told us on Dec. 14 demand has been holding, although there has not yet been a Christmas pull. “Demand this week has been steady like the past six to eight weeks,” he said, adding, “As of today we are not seeing an increase in demand for Christmas.” Steve said, “Demand for all sizes and colors is fairly equal across the board. The one exception would be very slow movement on medium reds.” The market, he said, “remains steady for the most part. We have not seen much change over the last four weeks.” Quality has been very good, and Steve said, “The onions look nice.” Noting that “heavy Thanksgiving business never materialized for us this year,” Steve said, “Unless business picks up in the next two or three days, we won’t see a major increase in demand for Christmas either.”
Joshua Frederick with Snake River Produce in Nyssa, OR, weighed in on Dec. 14, saying, “Eleven days until Christmas, and week 16 here at SRP is complete.” He went on to say, “Cooler weather is on its way, and with the holidays upon us, this week’s demand has slowed down for the most part. Works out to allow us to have some supplies going into the New Year with a glimpse of hope the market will begin to rise.” Josh continued, “Overall weekly business has been steady with regular accounts, and those pulling rail cars and such are backing up until wanting to load and ship the first of the year with some delays with cars in transit. Also, the strike had everyone wanting to hold off and see what was going to take place before putting a lot of onions on the rail and then them getting delayed also.” Looking ahead, he said, “I think around the 15th of January we shall see some sheds winding down with their crop and other sheds maintaining their business to stretch out until early spring.” The market, he said, “hasn’t seemed to move in the past few weeks and has been decent and holding steady.” Jason went on to say, “Our supplies and quality look great coming into January and February, so we are excited about that. Size for us has been heavy jumbos and colossal yellows. Our red program has begun to pick up on volume as well.” He said transportation “has been steady with good demand of carriers available, thanks to our Partner Company Murray/Trinity.” And Josh said, “From all of us at Snake River Produce Co. and the Payne and the Corn and the Frederick families, we wish you a very Merry Christmas and a safe and Happy New Year. We appreciate all our growers and their families, along with all our team and staff and employees here at SRP.”
Jason Pearson with Eagle Eye Produce in Nyssa, OR, reported in on Dec. 14. “Truthfully, demand has been a little slow for this time of year,” Jason said. “We are busy with a lot of program business, and we do expect Christmas pull to increase next week, but demand this week is a little off. Buyers do seem to want jumbo reds and yellows, but demand is super slow on medium reds right now.” When asked about the market, Jason said, “It’s steady and holding as it has been for a month and a half or longer, and as I’ve been saying it, should be higher, but it has been steady.” Jason noted EEP’s quality is good. “Onion quality out of both Washington and Eastern Oregon continues to be good,” he said. “Trucks are OK, and that’s about all there is to say on that note.”
Dwayne Fisher with Champion Produce Sales in Parma, ID, shared his thoughts on Dec. 14, saying, “Christmas is around the corner and why this market hasn’t taken off is puzzling. Coming off a national convention where stocks on hand nationwide are lower than we have possibly seen in a decade and really no buzz or excitement in the air is surprising.” He continued, “Seed companies remind us continually that there is actually a worldwide shortage. It feels like the collective mentality is this is a great market. While it is OK, it is certainly not great, given our farm expenses and clearly yields. In December you pay all of the fall costs for next year’s crop, and those invoices have been even larger than expected.” While that is true on the FOB price side, it is completely false in regard to the returns to our farms and growers. Nov. 1 long-term storage charges are assessed on the gross cwt. of onions that are in storage. This means that because the FOB market hasn’t moved up this past month that the return or market to the growers is off more than 1.00 a cwt. That cost is really at least 1.20 a cwt given shrink that doesn’t get into the bag.” He said, “I hope that if our stocks on hand don’t inspire us move up the market, that the increase in the delivered price to our customers this past month will give us reason. As freight rates soften the next few weeks, I certainly hope we move up to at least keep the delivered price the same on the buying end. Looks like some real opportunities for the New Year.” And Dwayne said, “We wish everyone a Merry Christmas and a Happy New Year. Time to create some excitement, numerous reasons for it to happen!”
Colorado Western Slope/Utah:
Don Ed Holmes with The Onion House in Weslaco, TX, said on Dec. 14 his Colorado and Corinne, UT, deals will run through the month, but he added movement has slowed somewhat. “Things are a little slower this week than I anticipated,” he said. “Prices are still holding, so it’s not really a matter of pricing. People just seem to be waiting.” He added, “Our supplies are in good shape. We’re light on reds but can get them for mixers. And we’re out of whites in Colorado.” Trucks are getting tighter, he said.
Organic Onions:
Brad Sumner with Pacific Coast Trading Co. in Portland, OR, told us on Dec. 14 that “Business is slow for us this week so far, hoping Christmas pull kicks in.” He said, “Whites are the only item tightening up. Reds and yellows steady demand, just a little light for us.” On the market, he said, “You have your baseline pricing and then the “deals”.” He added, Quality out of Pacific Coast’s sheds “continues to be very good,” and Brad commented on the holidays, “Thanksgiving was good and I will talk about Christmas after next week… so far not normal pull.” Looking to transportation, Brad said “Trees are about done if not done already. I think we have seen the peak WA to CA trucks. Weather has been an issue with delaying truck arrivals and loadings.”
CROP
Texas Rio Grande Valley/Tampico, Mexico:
Don Ed Holmes with The Onion House in Weslaco, TX, said on Dec. 14 the South Texas and Tampico crops are coming along very well. “Everything looks good right now, and South Texas looks like it has one of the best crops in the last 10 to 15 years. We’ve had a great growing season in Texas, and we’re going to have a pretty good chunk of onions, it looks like. Texas acres could be up.” The Tampico region has had good weather as well, and Don Ed said, “Mexico is going to have some onions in early January, but they’re flat and for retail. The round onions will start probably in early February.”
