Frozen onion is very popular in the international market because of its storable, versatile and convenient use. Many large food factories use it to make sauces. It’s onion season in China, and factories that specialize in frozen Onions are mass processing in preparation for the May-October export season.
Europe is buying frozen Onions and carrots in large quantities from China as its demand for frozen vegetables soared last year due to a drought that reduced crop yields. There is also a shortage in the European market of ginger, garlic and green asparagus. However, the prices of these vegetables in China and the international market are quite high and continuously rising, which makes related consumption weak and exports decline. While Chinese Onions are in season, the price is higher than in previous years but generally stable, the price of frozen Onions is also stable, so it is popular in the market, and export orders from Europe are surging.
Despite the growth in export orders, the market does not look promising this year. “The increasing inflationary pressure in foreign markets and the overall economic downturn pose challenges to exports. If purchasing power falls abroad, the market may reduce the use of frozen Onions or adopt other alternatives. Despite the current high demand for frozen Onions, prices remain stable as many companies in the industry are taking a “small profit, quick sale” attitude in light of the current economic conditions. As long as onion costs do not rise, frozen onion prices should not fluctuate much.
In terms of the change of export market, frozen vegetables were exported to the US market in previous years, but the export order to the US decreased significantly this year; The European market has seen a sharp increase in demand this year due to the drought. The onion season is now in China, at a different time from its competitors. Secondly, Chinese onion has advantages in yield, quality, planting area and planting experience, and the current price is low.
Post time: May-18-2023