Growers in Washington and Oregon are experiencing the benefits of heavy demand for onions as the 2024 harvest begins.

Growers in Washington and Oregon are experiencing the benefits of heavy demand for onions as the 2024 harvest begins. In 2023, onion utilized production in the Pacific Northwest increased by 6% from the previous year, according to the USDA’s National Agricultural Statistics Service. However, the value of utilized production in both Oregon and Washington decreased by 24%, with Oregon’s value at $171 million and Washington’s at $384 million.

Key points about the onion industry in the Pacific Northwest include:

Production and Market Share:

• Washington, Oregon, and Idaho together accounted for 58% of the national utilized onion production.
• Grower-shippers in these states offer a variety of onions, including yellow, red, white, and specialty onions like Walla Walla sweet onions.

Seasonal Offerings and Storage:

• F.C. Bloxom Co. offers Walla Walla sweet onions until mid-August, transitioning to other varieties thereafter. Improved storage technology and seed types have extended the storage period for onions by about six weeks.
• Castoldi Family Farm, which will celebrate its 100th anniversary next year, offers Walla Walla sweet onions and Candy Winter Sweets, a hybrid Washington sweet onion that follows the Walla Walla season.

Quality and Pricing:

• The quality of the onion crops has been reported as good, with prices for Walla Walla sweet onions holding steady due to their status as a limited specialty crop.
• Despite good prices, growers face financial challenges due to inflation and rising costs of inputs and labor.

Technological and Operational Improvements:

• Eagle Eye Produce has invested in a state-of-the-art storage facility in Nyssa, Oregon, and expanded its production capabilities through strategic partnerships with more warehouses. This ensures a consistent, year-round supply of onions.
• Basin Gold Cooperative will start harvesting red and yellow onions in late July, with white onions following later. The company will ship onions from early August until mid-to-late May, adjusting for weather conditions that can affect yields.

Inflation and Cost Challenges:

• Growers are adapting to higher production costs due to inflation by seeking efficiencies and passing some costs to consumers. However, the increased prices of inputs and labor continue to pose challenges.

Overall, the integration of new technologies and strategic partnerships is helping growers in Washington and Oregon manage the increased demand for onions, despite the financial pressures from inflation and rising input costs.

Citations:
[1] https://www.seattletimes.com/life/food-drink/whys-it-so-hard-to-find-locally-grown-asian-vegetables-these-seattle-area-farmers-are-trying-to-change-that/
[2] https://www.marketwatch.com/press-release/grubmarket-acquires-best-oriental-produce-the-largest-asian-squash-provider-in-the-u-s-902be829
[3] https://www.pdxmonthly.com/eat-and-drink/mora-mora-farm-vegetables-matta-stir-fry-recipe
[4] https://www.linkedin.com/company/best-oriental-produce
[5] https://www.hongphatmarket.com

What factors are driving the fluctuation in onion prices

Based on the search results, several key factors are driving fluctuations in onion prices globally:

Supply shortages:

• Weather-related disruptions in key growing regions like Mexico and Texas have impacted crops [4].
• Hurricane Hilary in August 2023 affected onion crops in Baja Mexico [5].
• Heavy rains in Eastern Canada impacted harvests [5].

Export bans and trade disruptions:

• India and Egypt, traditionally large exporters, have extended onion export bans [5].
• Red Sea attacks are delaying shipments from China to Europe [5].

Increased demand:

• European importers have turned to China for supplies due to bans and lower production in Europe [5].
• Per capita consumption of onions in the U.S. has been increasing [4].

Production costs:

• Rising costs of production have contributed to higher prices [4].

Seasonal factors:

• Demand typically slows in late August as children return to school [4].

Market speculation:

• Some domestic stockists in China are hoarding onions to speculate on prices [5].

Transportation issues:

• Shipping delays and detours due to Red Sea conflicts are increasing transportation times and risks [5].

Crop quality:

• There’s a reported shortage of high-quality red onions in some markets [5].

Currency fluctuations:

• While not explicitly mentioned, this can affect international trade and pricing.

Climate change:

• Irregular rainfall patterns and unseasonal rainfall can adversely affect crop yields [3].

These factors collectively contribute to the volatility in onion prices, with current prices in many markets reaching near-historic levels [4][5].

Citations:
[1] https://www.indiatoday.in/business/story/onion-prices-surge-rising-demand-traders-hold-stock-nashik-maharashtra-india-2551660-2024-06-11
[2] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4432944
[3] https://tejimandi.com/blogs/feature-articles/why-is-the-price-of-onions-rising
[4] https://www.thepacker.com/news/produce-crops/onions-see-growth-sales-pressure-supply
[5] https://www.freshplaza.com/north-america/article/9597491/global-market-onions/

How does climate change influence onion production and prices

Climate change significantly influences onion production and prices through a variety of mechanisms:

Weather-Related Disruptions
– Extreme Weather Events: Hurricanes, heavy rains, droughts, and unseasonal weather patterns can severely impact onion crops. For example, Hurricane Hilary in late August 2023 affected onion crops in Baja Mexico, leading to supply disruptions[1].
– Temperature Extremes: High temperatures can affect onion size, yields, and harvest dates. For instance, a two-to-three-week hot spell with temperatures over 100 degrees in Washington impacted onion size and yields[1].

Water Availability
– Water Scarcity: Onions require substantial water for cultivation. Climate change-induced droughts can limit water availability, thereby reducing crop yields and increasing production costs. This is particularly relevant in regions like Texas and Mexico, which have faced water woes[1].

Increased Production Costs
– Adaptation Measures: Farmers may need to invest in new technologies and practices to adapt to changing climate conditions, such as improved irrigation systems, heat-resistant seed varieties, and better storage facilities. These investments increase production costs, which are often passed on to consumers in the form of higher prices[1].

Supply Chain Disruptions
– Transport and Storage: Extreme weather can disrupt transportation and storage facilities, leading to delays and losses. Improved storage technology has extended the storage period for onions, but it also adds to the cost[1].

Pest and Disease Pressure
– Increased Pest Infestation: Warmer temperatures and changing precipitation patterns can lead to increased pest and disease pressures, which can reduce yields and quality of onions. This necessitates more investment in pest control measures, further driving up costs[5].

Market Dynamics
– Supply and Demand Imbalances: Climate-related disruptions can create imbalances in supply and demand. For example, a supply shortage due to poor weather conditions can lead to price spikes, as seen in the Philippines where climate change, pest infestation, and lack of suitable storage led to a significant increase in onion prices[5].

Geographic Shifts in Production
– Changing Growing Regions: As certain regions become less suitable for onion cultivation due to climate change, production may shift to other areas. This can create initial supply gaps and logistical challenges, affecting prices until new production areas are fully established.

Long-Term Climate Trends
– Gradual Changes: Over the long term, gradual changes in climate can alter the suitability of regions for onion cultivation, potentially reducing the overall area available for onion farming and leading to sustained increases in prices.

Conclusion
Climate change exerts a multifaceted influence on onion production and prices. From direct impacts on crop yields due to extreme weather to increased production costs and supply chain disruptions, the effects are pervasive. As a result, onion prices are likely to remain volatile, with potential upward pressure due to the need for adaptation measures and the inherent risks associated with climate variability.

Citations:
[1] https://www.thepacker.com/news/produce-crops/onions-see-growth-sales-pressure-supply
[2] https://www.worldbank.org/en/news/press-release/2022/10/12/china-s-transition-to-a-low-carbon-economy-and-climate-resilience-needs-shifts-in-resources-and-technologies
[3] https://www.indiatoday.in/business/story/onion-prices-surge-rising-demand-traders-hold-stock-nashik-maharashtra-india-2551660-2024-06-11
[4] https://www.brookings.edu/articles/unpacking-chinas-climate-priorities/
[5] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4432944