The Spanish onion sector is still waiting for a better supply balance, although the impact of this situation is uneven on the sector. “This year it seems that there is a little more production in Spain. As a result of the good prices that onions have achieved so far, it seems that the cultivated area has increased and that there is more supply on the market. This is reflected in the prices, which are not the best for sale, but unlike this situation we are experiencing high demand and, in fact, we are not able to provide all the production requested of us,” explains Guillermo Agorreta, of SAT Agorreta.
“As for onions, demand is not very strong and prices are around 10 cents per kilo. One of the reasons for these prices is that, given the high onion prices in recent years, we, the packers, have generally ensured a greater quantity of our own production or through contracts”, continues Guillermo . “Currently, almost all of the onion that can be bought in the field at these prices comes from sporadic producers who have started producing without any certainty of sale.”
“On the other hand, we can see that the industry does not support this oversupply or surplus of product and everything indicates that, like the packers, the industry has secured its raw material given the high onion prices nationally in previous years,” says Guillermo.
“As for the frozen food industry, it does not have more work capacity; she works with many types of vegetables and cannot absorb everything, which is added to the fact that she has contracted a large quantity of produce from China.”
“Because of all these factors, and although onions are very cheap, freezers are not buying as much product as expected this year. However,” he clarifies, “these low prices in the fields do not mean that there is no demand on the market for the finished product, because it is the opposite, as we see in Agorreta . »
“Our production area in the north of Spain, cold and windy, allows us to obtain a very high quality product and the Navarra onion is increasingly appreciated by our customers in European markets as well as in other countries. ‘other third countries’.
“At SAT we have carried out a significant modernization of our lines, with the installation of a new optical vision sorting machine to assure our customers that the product they receive is not only of the highest quality, but also a perfect onion. In addition to this new technology for quality, we have also increased our packaging and grading capacity, doubling it, due to strong European demand.”
For more information:
SAT Sold Out
Sol 14
31512 Fontellas, Navarra (Spain)
Such. : +34 948 827 972
[email protected]
https://agorreta.es
