Industry Insights

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Industry Insights

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Ag TRENDS Articles

Onions

Jan 26, 2024, 10:52 AM
Title : Onions
Short description : Industry information for Onions in the Pacific Northwest. Updated 3/31/2024
Survey link : https://www.surveymonkey.com/r/OnionsSnapshot
AgWest Farm Credit’s 12-month outlook for onions suggests profitable returns.
  • In 2023, Northwest onion growers faced a paradox of improved yields and reduced shrinkage but lower profitability due to decreased prices.
  • Weather conditions favored crop growth, leading to a significant yield increase and less loss from shrinkage.
  • Market prices for onions dropped sharply, negatively impacting grower income

Profitability

Due to inflation, supply chain issues and rising fuel costs, onion production expenses have soared to twice their pre-pandemic figures. Although production costs are forecast to decline by 2% in 2024, this won't fully counterbalance the substantial cost increase experienced over the last three years. For profitability in 2024, onion growers will need to rely on robust pricing. Yet typically, commodity prices decline more rapidly than production costs.

During the first quarter of 2024, onion prices have been bolstered by heightened demand from Mexico. As the Northwest continues to lead in onion shipments and shrink concerns are expected to rise, shipping rates are projected to remain elevated into the summer of 2024. This is particularly true for jumbo-sized onions or larger. Producers must focus on controlling production costs and securing strong onion prices to ensure continued profitability.



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Pear Profitability Outlook

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