MARKET
Western Colorado:
David DeBerry with Southwest Onion Growers in McAllen, TX, reported in on Nov. 3 to tell us his Delta, CO, growers are shipping “all big stuff” this year. “We’re fully into storage now,” he said. “We have all three colors, and our yields and quality are outstanding. Everything is under cover, and nothing is going to change for the rest of the season.” David called transportation “a battle,” and he said, “It will stay that way. It’s not going to change.” Thanks to David for the great shot of Brent Hines Farms’ onions from Colorado.
Utah/Western Colorado:
Don Ed Holmes with The Onion House in Weslaco, TX, said on Nov. 3 that his onion deals in Corinne, UT, and the Olathe region of Colorado’s Western Slope are both running full-steam with all colors and sizes. He noted that labor is short in both areas, but the two deals will run into January. “Movement is good,” he said.
Idaho:
Rick Greener with Greener Produce in Ketchum told us on Nov. 3 that demand is steady this week. “We are shipping onions out of Washington, Oregon, Idaho, Utah, Michigan, Colorado, and North Dakota,” he said. “Basically, we are going where we can get the trucks and the orders delivered to the customer on time. We are also doing some intermodal rail up through Canada to the East Coast, and that’s been pretty slick, but it requires a lot of preplanning and plenty of lead time.” Rick said demand for mediums has increased. “Due to the start of the Thanksgiving push, mediums have tightened up, and the market on mediums is strengthening, too. There is still strong demand for larger onions and high demand for colossals.” Rick said the market is strong this week. “The market is incredibly strong, and it is not going to go down,” he said. “I have people asking me every day, and the answer is still the same – the market is not dropping. There is no more of this ‘boy who cried wolf’ deal – the wolf is here. So don’t bank on lower pricing. It’s not happening. In fact, some of my high-quality smaller shippers are already 20-30 percent through crop right now and could most likely be finished up by mid-to-late- January, so keep an eye on supplies. For the immediate future, I recommend sticking to the 6 Ps of life: Prior Planning Prevents P&** Poor Performance. So get the orders in early, people!”
Idaho-E. Oregon:
Steve Baker with Baker & Murakami Produce in Ontario, OR, told us on Nov. 3 that demand hasn’t changed. “Demand is similar to the past few weeks,” he said. “We still have more demand than we have supplies available on a week-to-week basis at this time. I’m finding demand equal across the board on all sizes and colors.” He also said that supplies are tighter than most years. “It’s no secret that are supplies are down from previous years out of the Idaho/E. Oregon,” Steve said. “We will have to manage supplies throughout the season to take care of customers.” The market, he said, has been “very steady” this week, and quality remains “very good.” And Steve commented on transportation, saying, “Transportation has been adequate for our needs so far. As the weather turns colder, flatbeds will be out of the question for most of us.”
Dwayne Fisher with Champion Produce Sales in Parma, ID, gave us his upbeat report on Nov. 3. Dwayne said, “Out East things got exciting overnight and shook up the status quo! It feels like the onion market is about to do the same.” He continued, “The next two weeks we should really see demand pick up. Trucks are extremely tough right now, and that trend will remain the same – just how it is. Utah has been better on transportation, and we are oversold down there every day because of it!” Dwayne went on to say, “In further reference to a red wave, jumbo reds have seen an uptick in pricing, and I believe that segment is going to get HOT before the end of the month. Medium yellow demand is up as well, which is strengthening that price, but we need that to be way stronger than what it currently is at.” He also said, “I have had many customers reference that they are getting onions from Spain offered to them in Miami and New York. I think since so many customers have referenced it, they must not be very easy to sell. None of my customers will touch them! I can’t imagine any foreign onions right now in the foodservice market would be bought at all, and that’s how it needs to remain. We have to protect and strengthen our American growers.” Dwayne concluded, “If you haven’t priced a tractor lately, I would encourage you to do it just for fun – and to get an idea of what we are up against! Every grower I know, including myself, needs to update tractors because of the number of hours we have on them, but man, who can afford to, hence why they are racking up the hours. Things look very positive for this market to start moving up again as we approach the holidays. Speaking of holidays, a used (not talking new tractors, just new to us) John Deere 8RX 370 with a red bow on it for Christmas would be amazing!”
Idaho-E. Oregon/Washington:
Jason Pearson with Eagle Eye Produce in Nyssa, OR, told us on Nov. 3 that demand is steady this week. “Demand has been good and is starting to pick up for Thanksgiving orders,” he said. “Buyers are looking for yellows and reds mostly, but there is some demand for whites. Medium demand is picking up for the holidays, but jumbos are still in the greatest demand. We do have good supplies of colossals and supers, and there is good demand for that as well. Our quality is very good, so we are in good shape for the Thanksgiving push.” On the market, Jason said it’s steady. “The market is not coming off at all and remains strong and steady,” he said. “We need to be careful not to push orders out the door and to keep the market up.” On the transportation front, Jason said, “We can get the trucks, but it’s been tough, and we’re having a tough time getting rail cars, too.” Speaking as one of the Board of Directors for the Malheur County Development Corporation in charge of the new Treasure Valley reload facility, Jason said, “We are so happy to be breaking ground on the new reload facility on Nov. 15. We can use the transportation assistance the reload facility will provide so we can get some relief to these current freight woes.”
Washington:
John Vlahandreas with Wada Farms reported in on Nov. 3 from his sales office in Salem, OR, telling us that he is moving onions mostly out of Washington this week. “Demand has been good, and the Thanksgiving orders have started coming in,” he said. “Demand will intensify next week, and then it will be totally crazy the week after with everyone getting their Thanksgiving orders in. Mediums are picking up demand-wise, and that is bringing up the market on mediums as well. The overall market is stable, and it’s definitely not coming off any time soon. Everyone should be really happy right now because, in this market, the money is really pretty good. I say that, and then I have to stop myself, too, because I know that costs have come up, and the market needs to be where it’s at to cover these rising costs. It’s going to get really interesting after Thanksgiving and even more so after the first of the year when everyone knows what supplies they have left and other regions start coming in. It’s good to see that we are using more of the U.S. onions here for domestic instead of exporting, but on the other hand, we depend on exports too, so we do need to see our exports pick at some level.” Regarding the holidays, he said, “I hear everyone complaining about the supply chain and how they may not get what they want to buy for Christmas gifts, etc. I think this year it’s a good time to just reflect and remember what the holidays are for and forget about making it a monetary holiday and focus on time spent with family and friends. Be thankful for what we have instead of what we can’t get. And be thankful for a solid onion market that’s here to stay for a while.”
California:
Our thanks to friend Robert Bell with Western Onion in Camarillo for great photos and video this week from Rio Farms in the Salinas Valley. Bravo!
