Affected by a variety of factors, onion exports are facing serious challenges, and the overall export volume in the first four months of 2021 shows a downward trend. With the gradual reduction of foreign sources of storage in the early stage, the export volume stopped falling and rebounded in May,domestic onion prices tried to rise.
This year’s onion planting area has decreased, the price is generally high, and the domestic market demand is large, the proportion of domestic sales has increased, coupled with high sea freight and the impact of the epidemic, my country’s onion export market is not good, and the recent appreciation of the renminbi has also been to a certain extent. Weakened the enthusiasm of export traders.
China’s onions are mainly exported to Japan, South Korea, Russia, Southeast Asia and other countries and regions. Due to the small number of early exports, as the storage supply is exhausted, the export volume in May stopped falling and rebounded. In May 2021, my country’s onion export volume was about 47,800 tons, the export value was 27,163,200 US dollars, and the average price was 0.57 US dollars per kilogram. The export volume increased by 59.95% from the previous month and decreased by 9.33% from the same period last year. The cumulative quantity in May was 203,362,370 kg, and the cumulative export quantity from January to May 2021 decreased by 20.6% compared with the same period last year.
The proportion of my country’s onion exporting countries and regions in 2021 is shown in the figure below:
According to customs data, in May 2021, China’s largest exporter was Japan, accounting for 38%; the second and third were Vietnam and the Philippines, accounting for 20% and 13%, respectively. Japan’s demand is mainly based on onions that are peeled and processed in my country, South Korea and other countries demand 80-90 scallions, while Southeast Asia and other countries mainly focus on small scallions below 80. Although the current export market has picked up, there are certain risks in exports due to uncertainties such as foreign epidemics. It is recommended that you calmly wait and see the market dynamics, and at the same time seize the opportunity and wait for opportunities to win business opportunities. Exports have also contributed to the rise of domestic onion prices to a certain extent. The average price trend of various domestic production areas is shown in the following chart:
At present, most of the production areas in Shandong and Henan have been dug out new onions, and various places have begun to store them in warehouses, and the sources of dry stocks have begun to go out of warehouses. Due to the reduction of the planting area this year and the high price of onions, some stockists are in a wait-and-see state. They have few stocks and are generally reluctant to sell. Coupled with export and other factors, the prices of red and yellow onions have risen recently. The early-maturing green onions from Gansu, the main producing area, are expected to go on the market around July 20. Domestic onions will have a gap in the future. In the short term, the price of green onions will continue to rise. However, due to the impact of the general environment, the overall shipment situation of vegetables this year is not good, and there are still uncertain factors on the demand side. It is recommended that storage companies seize the opportunity to ship with them, and at the same time pay attention to changes in the market of other vegetables, adjust their strategies flexibly, and avoid market risks.
Linyi Organic Foodstuffs Co., Ltd is a professional manufacturer and supplier of Frozen vegetables and frozen fruits products in China. Our factory has rich experience production for frozen vegetables and fruits. We have self-owned and contracted farm to plant raw materials to guarantee quality from the source. Well-experienced worker and QA team, advanced traceability system will make sure our product reached European high-quality standard.