Featured image: Brawley, CA crop progress, photo courtesy of Megan Jacobsen with Gills Onions
MARKET
Washington
Matt Murphy with L&M Cos. in Raleigh, NC, provided his report on January 17. “Demand is good this week,” Matt said. “It definitely hasn’t waned at all since the new year. I would say the only other times I remember January demand like this was back in ’17 with “Snowmageddon” and earlier in 2008. As far as supplies go, we have good supplies of yellows and reds that will get us through until we switch over to our Calipatria, CA deal in April, but we don’t have any open whites. We are filling our customer contracts with the whites we have. The onion quality is holding up really well, and the market is going up on everything.” Matt commented on transportation, “We’ve been getting the deliveries to our customers just fine, but we have been running into issues with getting the trucks in to load. One day, we might have only part of the trucks that were supposed to load that day, and then the next day, they all show up at once. It can get pretty crazy, but we are getting it done. Freight rates are also expensive.”
Idaho-E. Oregon
Dwayne Fisher with Champion Produce in Parma, ID, reported in on January 17. “Winter has arrived, and while we need the moisture for the reservoirs this summer, the extra work that comes with it can be a real downer!” Dwayne said. “What isn’t a downer is this market and the positive outlook for the remainder of the season. I think the biggest thing now and going forward is to not get complacent and leave a bundle of money on the table for your growers and farms. Since we are the farm and pay those bills and have to replace equipment, we stay very ahead of where this deal is going. We have seen increases in price this week on all size and colors and that should only move more as we proceed to the end of our season. Our white production has ended for the season.” He continued, “We aren’t able to find supplies of whites at all, so we just aren’t offering them anymore. As we market the last few months of our crop if we aren’t aggressively staying ahead on our quotes we will already be way behind!” Dwayne concluded his report by saying, “We greatly appreciate our teams this past week as they have worked their days off and overtime hours moving snow and shoveling sidewalks in the below freezing temperatures to keep us packing. It looks like the weather straightens up next week, and we should see things get even more exciting with the market.”
Steve Baker with Baker & Murakami Produce in Ontario, OR, told us on January 17, “All colors and sizes seem to be moving equally well,” Steve said. Noting, “Whites are extremely tight right now. Lucky to be able to find them in our area. Medium reds have also been on the tighter side this week.” Steve added, “Demand has been good this week. Mexico has started to inquire again this week and they are buying.” On market and transportation, Steve noted, “The market has been fairly steady this week. But we are seeing a slight increase in pricing on reds. Truck transportation has been the tightest we have seen all season. The extreme weather conditions around the country have not helped make transportation any easier. The weather is affecting the trucks’ scheduled pickups and deliveries. Freight rates have risen this week.”
Chris Woo provided an update on Treasure Valley on January 17. “Onion demand is decent, and the prices are holding,” Chris said. “Local inventory of yellows and reds appear to be at some of the lowest levels for the past few years, and most sheds are finished with whites. Pricing is good, and it is needed to offset our expensive cost of production.” Chris weighed in on the weather, saying, “Weather is a factor affecting shipping lanes, with snow and ice being more prevalent. The weather is also impacting the time it takes for packing sheds to dig out before they start their day packing their fine onions for their fine customers at these fine prices. We are still receiving good inquiries for onions going to Mexico, so who knows how long it will be until their local crop gets going full steam is anyone’s guess.” Chris continued, “One positive with this additional snowpack in the Treasure Valley is that we should have adequate moisture for next season.”
Idaho-E. Oregon/Washington:
Jason Pearson with Eagle Eye Produce in Nyssa, OR, told us on January 17, “All I can say is that we are busy, busy, busy,” Jason said, “Demand is very good for everything, and of course jumbo and medium yellows are hot, and if you have whites, you have a gold mine!” Jason commented on the market. “The market is strong and inching up, which is great for our growers.” On transportation, Jason said, “The weather is making it hard to load and get the trucks in here, but we are working through it. Our quality and supplies are good to go, and we’ll be in good shape to have a smooth transition to our new Texas crop in mid-April.”
John Vlahandreas with Wada Farms in Salem, OR, told us on January 17, “Well, first off, we’ve had a little of everything weather-wise over here… ice storms, snow, you name it,” John said. “We are shipping out of Washington, Oregon, and Idaho, and demand is very good, but some shippers haven’t been able to run full steam due to the weather. At the sheds, they have to get things cleared up, and some have to bring onions in off-site. You’re looking at half days or six-hour days of production. So then there will be orders pushed into next week, and there will be a mad rush to get those out along with the new orders.” John continued, “What is also happening is some shippers need to get a handle on what they have in storage. With all that is going on right now, that is going to be a rough go and they need to get in the storages and get a look at everything. Plus, Mexico is still buying US onions, and that plays a factor too, at least for a while, until we see what Mexico is going to come across with. Of course, Mexican growers would prefer to sell their onions here if they can because they make more in the US, but we really don’t know what the volume is going to look like yet. So, for now, the market is steady and increasing. I have to say that earlier in the season, I thought it might be a so-so season, and I think I was wrong. Given what we are looking at now, I think this thing is going to go all the way.” On transportation, John said, “Transportation in this severe weather is making it hard for trucks to get in until things get cleared up. When it comes to ordering, and as I’ve been saying along, with this winter storm stuff, be prepared!”
Idaho/Washington/Oregon/Utah:
Rick Greener with Greener Produce provided his report on January 17. “We are shipping out of Idaho, Washington, Oregon, and Utah, and demand is good this week, “ Rick said. “I have to say that shippers are getting sold out with all this weather and loading and production delays. You have to plan, and it’s a serious deal out there.” Rick commented on the market. “Of course, whites have been super tight. Reds are tight this week, and Mexico is still buying. All this means that the market is poised for more increases. You better be making your wish list and work toward seeing how much of it you can get filled.”
Wisconsin:
Doug Bulgrin with Gumz Farms in Endeavor provided his report on January 17. “Demand is about twice what we usually experience at this time of year, so needless to say, we are crazy busy,” Doug said. “The market is moving up across the board, and jumbo yellows are a hot ticket. You look around at what’s going on, and I think everyone wants to be an onion salesman right now.” Doug continued, “Seriously though, we are working extremely hard to keep our customers in onions, and that concerns us most, but we are on it and getting it done!” On freight, Doug said, “In the Midwest, we still have a freight advantage, but its been tough. We are getting the trucks, but rates are expensive.”
CROP
Tampico, MX/S. Texas:
Don Ed Holmes with The Onion House in Weslaco, TX, told us on January 17 that both the Tampico and S. Texas crops are progressing well, although both areas are experiencing a delayed start to the 2024 season. Recent cold temperatures hit Mexico and S. Texas, but Don Ed said the cold did not adversely affect the onions at all. He said onions from Mexico are expected to start Feb. 5, and he noted, “Mexico’s acreage is off, and early volume will be light. But volume will build as we get into the month and will continue to build into March. Texas will take over after about March 15.” He said Mexico will start with yellows, with reds following the same week. Whites will come in later. Currently, he said, medium yellows are bringing about half what jumbos are bringing, and growers in Mexico were trying to maximize the yields, which is a major factor in the late start. “Texas will start with yellow and reds, and whites will be last,” Don Ed said. “The onion market looks to be good and will likely stay that way through May.”
David DeBerry with Southwest Onion Growers in McAllen, TX, told us on January 17 that some shippers might start moving small volumes of onions from Mexico next week.” David said volume will increase, and “by Feb. 15, a fair number of shippers will be going.” He added, “It’s still a late start in Mexico. Late planting due to water issues in the fall made for a late start.” He also noted that the onion market in Mexico is higher than in the United States.” David said crops in both areas are doing well. “The cold didn’t hurt anything, and some operations in Texas will have a few onions in March. We will start after April 1.”
South Texas
Jason Pearson with Eagle Eye Produce in Nyssa, OR, told us on January 17 that their Texas grower’s crop is doing well and on track for a mid-March start date. “Everything looks great in Texas, and we should be transitioning smoothly from the Northwest in April. I should be able to share some crop photos soon.”
Brawley, CA
Megan Jacobsen with Gills Onions in Oxnard sent us great photos this week of Gills Brawley, CA, crop progress. Click to enlarge photos and to scroll.
