Featured image: South Texas onion crop progress, courtesy of Jason Pearson with Eagle Eye Produce in Nyssa, OR, from last week’s visit with Texas growers. Additional photos below.
MARKET
Idaho-E. Oregon:
Shay Myers with Owyhee Produce Company in Parma, ID. and Nyssa, OR, provided a detailed video market update on his LinkedIn profile on March 8 and has allowed OnionBusiness to share it with our readers and provide a recap. Shay explains that the recent “downward pressure” on the market relates to exports offsetting shortages out of the Northwest. “This season there were 7,900 loads shipped from Peru,” Shay said. This was an increase over last year, he explained. He also noted these loads combined with Canadian loads coming in took away from the upward pressure the market may have seen from the shortage that the Northwest had. He noted that for the next 30 days, there will be ample supplies coming out of Tampico, Mexico, and South Texas. There may also be a delay on the start date for the Imperial Valley due to cooler weather. Shay goes on to offer some forecasting on May and June’s onion availability and crop status. For the complete update, please go to Shay’s LinkedIn page here.
Jason Pearson with Eagle Eye Produce in Nyssa, OR, told us on March 8 that demand has picked up this week. “February is typically an off month, and demand has picked back up this week,” he said. “Buyers are back, which is what they usually do in March, and they are looking for reds and yellows – mostly jumbos. The market is coming off though, and that just means it’s costing growers money, and we never like that. We are still shipping good quality onions, and we’ll ship out of Idaho-E. Oregon and Washington through the end of the month. It will be a seamless transition when we move to our Texas deal.” On transportation, Jason told us there haven’t been any problems. “Trucks have been easy to find, so no issues there.”
Dwayne Fisher with Champion Produce Sales in Parma, ID, said on March 8, “Many sheds are finishing up this week and next in the valley. Supplies are very limited, especially on big stuff. We are getting above mostly market FOBs on colossals and supers.” He continued, “Demand seems steady for us as we wind down the season very rapidly.” And Dwayne said, “I would have lost the farm in a bet this year if you would have told me prices would be at their current levels. The foreign onions continue to be way too large of a percentage of our overall daily shipments for the jumbo FOBs to gain any traction. I am speechless when I hear of local sheds starting their foreign deals this time of year. The one thing that our farms and growers can count on is we are 365 days American soils only! I am sure those foreign growers are scratching their heads as well, thinking things didn’t pan out the way they had thought they would either in terms of market. “He concluded, “We had hoped to be planting this week, but with cold temperatures and blowing snow Mother Nature said not so fast. The only thing I know for sure for this next growing year is that we will have water on our side of the valley.”
Idaho/Oregon/Washington/Utah/Michigan:
Rick Greener with Greener Produce in Ketchum, ID, told us on March 8 that his team is shipping out of Idaho, Oregon, Washington, and Utah, and they are just wrapping up Michigan. “For us, demand was better last week,” Rick said. “Buyers I am working with this week are mostly looking for retail packs and processors. There is a lot of pressure on the market with Mexican onions coming across, but it’s a weird week. We think the market is stabilizing, but you see these spot deals with small sheds trying to clean up. I recommend shippers keep their suspenders up. The quality of the shipments we are making is very good – so I don’t know. We need to keep the market up.” When asked about freight, Rick said it’s better this week. “It was hit-and-miss last week,” he said. “There was some struggle with storms, but it seems like everything is back to normal this week –whatever normal is.”
Washington:
Matt Murphy with L&M Companies in Raleigh, NC, told us on March 8 that the demand is steady for his company’s onion sales out of Warden, WA. “Our sales out of Warden really don’t change week to week,” Matt said. “We are ahead of schedule, so it looks like we will be wrapping things up for our Washington onion sales in mid-April – which will be perfect because we will be moving to our Calipatria, CA, program then. This week there seems to be more demand for reds. Whites and medium yellows are seeing more movement too. Of course, buyers are always looking for the big stuff, and for Washington, supers are always tight, but we do have availability on colossals.” When asked about the market, Matt said the market is getting pressure. “With Mexico crossing with good volume, there is downward pressure on the market,” Matt said. “Texas is also getting an early start, and that’s having an impact as well. Freight-wise, we’re in good shape. Trucks have been easy to get, and rates are coming off too.”
Mexico:
Don Ed Holmes with The Onion House in Weslaco, TX, said on March 8,” We’re blowin’ and goin’ with all colors and all sizes out of Mexico, and I think we’ve got another hard two weeks. And then it will start to wind down. At that point Texas should fall in lock step right behind.” He added, “We’ve seen a real uptick in business, and volume out of Mexico is good.” He also said the market is holding steady but not where it should be “We’re seeing a slow leaking,” he said. “There are a lot of people with a few onions,” Don Ed continued, noting he expects conditions to turn around as more areas come on and others go out. The Onion House will begin shipping out of S. Texas in late March-early April.
David DeBerry with Southwest Onion Growers in McAllen, TX, told us on March 8, “We are so busy – volume-wise we are 30-40 percent higher than last year.” He added, “One of my bigger growers is finishing today. A smaller grower finished last week, and other smaller grower will go another two weeks. And my biggest grower will go until the end of the month. Movement is good, and trucks are available.” He said whites have slowed a bit but not a lot. “Their market went up. Mexico City itself uses 75 loads a day.” As Mexico winds down, the Texas Rio Grande Valley will come in. “There will be no gaps,” David said. Texas will have all sizes and colors within the first week, he said.
Bronx, NY:
Lou Getzelman with Canyon Sales Co. on the Hunts Point Market in New York told us on March 7, “I am seeing a lot of downward pressure on the market this week. Freight rates seem to have come back down to the bargain basement levels out of the West, so it really makes for some good buying opportunities. We’re pushing hard out of Idaho this week, really trying to finish out the season as Mexico has come on STRONG.” Lou also said meetings and chats with other industry folks attending the Southeast Produce Council’s Southern Exposure held last week in Orlando were enlightening. “Things could get interesting in April, and after having some conversations at the SEPC, I do not expect the Imperial Valley to start on time. It has been pretty cold there. We were expecting to get going there mid-April, and now we’ll be at least a week behind. The question will be if Mexico and South Texas can cover that gap.” And about the annual SEPC event, Lou added, “It was so nice to see so many onion friends there.” Many thanks to Lou for sending OnionBusiness photos from his trip to SEPC. Click image to enlarge and scroll.
CROP
Calipatria, CA:
Matt Murphy with L&M Companies in Raleigh, NC, told us on March 8 that the company’s Calipatria deal is slightly behind schedule. “We have had some cooler, wet weather, so it looks like we will be starting a little late – around April 24,” he said. “This is actually perfect for us. It will be a smooth transition from our Washington operation to California. We’ll start off with yellows and then add reds and whites about a week later, which is typically what happens with start-ups there. Despite the weather, the crop looks in great shape, and we do expect a great season in California.”
Colorado Western Slope:
David DeBerry with Southwest Onion Growers in McAllen, TX, said on March 8 that his growers in Delta, CO, are being kept out of the fields by cold, wet weather. “The ground is still wet and frozen,” David said. “They’re usually in the ground by the 15th, and one of my growers told me the chances of that happening are slim to none… and slim has left the station.” The new season traditionally starts in late August or early September and runs through the end of the year.
S. Texas:
Jason Pearson with Eagle Eye Produce in Nyssa, OR, visited the company’s Texas growers last week. “The crop looks to be in fantastic shape,” Jason said. “We will start off April 15 to 17 with yellows and then we’ll add reds and whites about a week later. When we get started, we will be running full steam, so the transition from the Northwest to our Texas deal will be seamless.” Many thanks to Jason for sharing photos from his recent trip. Click image to enlarge and scroll.
