Strong Organic Onion Market Expected to Continue

A lull in organic and conventional onion supplies has created a very strong market that is expected to last until at least the end of March and perhaps into late spring.

Sloan Lott, director of sales for Bland Farms in Vidalia, Georgia, reported that the onion market is very strong currently, with a 40-pound carton of conventional onions from Mexico returning $26-$28 FOB and organic onions from Peru receiving an $8–$10 premium above that. Mexico has very few organic onions, Lott said, and South Texas, when it starts production in March, will be in the same boat.

Sloan Lott, Director of Sales, Bland Farms

“We are bringing in a few organic loads of onions from Peru,” he said, noting that there will not be a big increase in production on the organic front until Vidalia kicks in in late April.

Vidalia is running about a week later than usual, and Lott is anticipating that the season will start around April 21. “We’re basically on track for a good season, but we are a little behind on heat units,” he said this week. “The crop looks good. We’ve had a cold winter but not terrible.”

The Georgia Agricultural Commissioner sets the start date each year to begin packing its world-famous sweet onions, and this season it appears that it will be about a week later than the April 15 date that is often in play.

Once the season gets underway, Lott believes there will be good supplies of organic onions as he said many growers have increased their organic acreage in the past few years.

 “There should be a decent volume of organic sweet onions. Of course, not as much as the conventional sweet onions, but we are expecting good yields across the board,” he said.

“We’re basically on track for a good season, but we are a little behind on heat units. The crop looks good. We’ve had a cold winter but not terrible.” - Sloan Lott

Before Vidalia begins shipping its onions, the well-known Texas 1015 will hit the market. Currently, Mexico is sending a good portion of its supplies into the US, though Lott said growers south of the border have had an excellent domestic market for the start of their season, and so a good percentage of those supplies have not been exported north.

Russon Holbrook, part owner and senior vice president of South Tex Organics in Mission, Texas, confirmed that the start of the season for the exclusively organic grower-shipper is right around the corner. “We will be shipping organic spring sweet onions, both reds and yellow, starting about March 11.”

Holbrook said they began blading the onions that day, and they will dry in the field for a few days before heading to the packinghouse by the middle of next week (March 4-10). That will allow for shipments the week of March 11. 

Russon Holbrook, Part Owner & Senior Vice President, South Tex Organics

South Tex Organics' onion crop volume should be on par with last year, if not a tad higher. Rio Grande Valley onion growers have had two straight underperforming seasons, which put the size of this year’s crop in doubt. South Tex Organics was able to pre-sell a portion of its crop before plantings, which convinced the company to increase its acreage a little bit. 

The normal rotation of crops has onions scheduled on larger plots this season, Holbrook said, which could be very beneficial because of the strong market currently being quoted.

“We have heard that there are some supply deficiencies, so we are hoping for a good season,” Holbrook said. “My plan is to get in early and out early. Because we are starting a little earlier than usual, we should be done by the end of April.”

This season South Tex Organics has added a 2-pound bag of organic onions to be marketed alongside its 3-pound bag and bulk 40-pound carton.

"We have heard that there are some supply deficiencies, so we are hoping for a good season. My plan is to get in early and out early." - Russon Holbrook

Another supplier of organic onions is Yerington, Nevada-based Peri & Sons Farms. The grower-shipper’s Director of Marketing & Customer Relations Teri Gibson said that they have multiple growing areas and endeavor to have a consistent supply of organic onions year-round.

“We strive to have 10 percent of our acreage in organics throughout the year,” she said, noting that as a grower of thousands of acres of onions that means the organic volume is robust all year long.

Teri Gibson, Director of Marketing & Customer Relations, Peri & Sons Farms

The company offers organic reds, yellows, and whites throughout the year and also produces its proprietary organic Sweetie Sweet onions between August and December and the tearless Sunions from December through March. In addition, Peri & Sons offers its customer organic gourmet cipollini onions and gourmet shallots.

"We strive to have 10 percent of our acreage in organics throughout the year." - Teri Gibson

Besides its home base in Nevada, Peri & Sons also produces organic onions in the Imperial Valley and San Joaquin Valley, which allows for year-round steady production.

Gibson added that the company continues to stress the need for sustainable packaging to its container partners because it's an important feature to many organic shoppers. “We are moving in the right direction, but it’s a very large ship, and it’s a long, slow turn,” she said.