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Simon Vale - Balle Bros

"New Zealand exports with the early focus on the EU and UK markets, with a move towards Asia from now"

The onion harvest in New Zealand's North Island finished at the end of March and the South Island should finish before the end of April.

"We have experienced favourable weather across all regions of New Zealand," said Simon Vale from Balle Bros. "We have had plenty of sunshine, occasional rain and warm temperatures, but not excessively hot. We have ended up with a good quality crop. Clean skins and hard onions which should store well. Yields and sizing are more normal this year compared to the last 2 years."

Europe
"The overhang of Dutch onions means that New Zealand exporters and EU importers have been cautious with their orders. There will be a slightly later start to retail programs, but the final volume sent from New Zealand should be sufficient to fill the gap between local onions finishing and the new season crop."

The FTA with Europe comes in on 1st of May, but Simon doesn't think this will affect sales volumes much this year, as almost all orders were confirmed prior to the FTA being finalised. "Importers with later arriving programs will feel the benefit of the zero % import duty. Next year should receive greater interest in NZ onions compared to other Southern hemisphere exporting countries that don't have an FTA."

Asia
Many markets are looking for good quality New Zealand onions, while others like Japan and Taiwan currently have good local crops to work through, so demand is not as high in North Asia.

"Demand from Asia is normal at the moment, each country having their own unique factors. Trading into Indonesia has only just started due to new phytosanitary requirements and the slow issuance of quota but is now open and the first containers from New Zealand are on the water."

Balle Bros have a wide spread of markets and volumes are split relatively evenly between EU/UK, Asia, and Pacific/local New Zealand markets.

"The market windows appear to be relatively normal for New Zealand exports with the early focus on the EU and UK markets, with a move towards Asia from now. Obviously, some trade lanes have been affected by the extra transit time as a result of the Red Sea issues and therefore shipping for programmes in EU and the UK have had to be slightly earlier."

For more information:
Simon Vale
Balle Bros. Exports Ltd.
Tel: + 64 9 2370898
Email: [email protected]
www.ballebros.co.nz