South African company Dutoit's main onion season is coming to a close. Production from the Western Cape, the main producing area finished in July and production is now continuing in the Northern Province and will finish up in the Northern Cape.
South Africa produces and grows onions on 7.500 ha, 3.000 ha which are in the Western Cape. Dutoit produce as much as 50,000 tons per year which is 14% of the total South African onion production.
The traditional export destinations are Europe and the UK, with an export window from mid January to mid May, but according to John Davey, Marketing Manager (vegetables), this depends on many factors.
"This year the window was short as the Netherlands and the UK had big crops in 2011, with good quality even after storage. The demand for imported onions was further reduced due to factors such as the recession, where people are not willing to pay extra for the imported new onions, even if the quality is better. The stronger exchange rates on our local currency this year also made it financially less attractive."
He goes on to say that due to this there was a big move to develop the domestic market. Exports to Africa also saw a huge increase, last year the Western Cape region exported 1.9 million bags (10kg) there, this year it increased to 2.5 million. They are also looking towards the East as possible new markets.
Dutoit has their own storage and packing facilities which receive the produce from their 6 farms. The company also supply peeled onions for South African supermarkets and sliced and diced onions for the catering sector.