Onion exporter says NZ season could end in tears

Photo / RNZ - Carol Stiles

RNZ

A Pukekohe-based onion exporter says this season is shaping up to be the worst he has seen in 30 years.

NZ Onion Company managing director Mike Blake said Europe is halving the number of onions it would usually take from New Zealand.

"The cost of freight has increased by as much as 100 per cent to different parts of the world," Blake said.

He said the only way to offset that was to increase the price or to return less to the growers.

"And as a result of New Zealand asking for a higher price, the packhouses and supermarkets in Europe have decided to go as long as they possibly can with their own production and reduce the import season.

NZ Onion Company managing director Mike Blake. Photo / RNZ - Carol Stiles

"Instead of having a four or six-week programme (selling New Zealand onions), they are only going to have a two or three-week window."

He said about a third of New Zealand's 180,000 to 200,000-tonne export crop usually headed to Europe.

Limited volumes are going to Japan.

"But it's not really proving to be the saviour that we were anticipating," Blake said.

Growers have also had a difficult year. Very hot dry conditions early in the season resulted in small onions with thin skins and then crops were hit with mildew following heavy rain.

Photo / RNZ - Carol Stiles

Indonesia provides a market for some of New Zealand's smaller onions.

The New Zealand Onion Company exports 15,000 tonnes of onions each year and Blake said he expected that to reduce by 30 per cent this season.

The first of this season's onions left New Zealand earlier this month.

- RNZ