Some producers have observed that the price for white onions in the United States tends to fluctuate more strongly than for red or yellow onions. During times of market volatility, prices rise much higher and fall much lower for white onions.
Shay Myers of Owyhee Produce, offered an explanation as to why this is the case. He says the primary reason is that white onions make up only a small fraction of total onion production in the United States. "People often ask me why the price of white onions rises and falls so dramatically," he said. "In the past few weeks alone, white onion prices have risen from $12 to $30. The primary reason is that white onions are in extremely short supply in the United States, making up only five to ten percent maximum, of total onion production in the country. Red onions make up 15 to 20 percent, with yellows holding the balance."
A matter of demographics
If white onions only make up five to ten percent of onion production and prices are consequently volatile, why not produce more to have a more stable market? Growers say the simple answer to this is demand and the fact that yellow onions are the most popular onion variety in the United States.
"Each country has its own preference of onion variety," Myers explained. "In India for example, red onions are the most popular, while in Mexico white onions are the preferred variety. In Canada and the United States, yellow onions attract the highest demand and therefore, production is apportioned accordingly."
Another reason has to do with the storage capability of white onions, with Myers noting that this time of year sees lighter storage supplies. "White onions don't store as well. As a result, we tend to see reduced availability coming into January and February and that is also why prices tend to spike during this time."
Mexico white onion season has an effect
White onions are imported into the United States during times of greater demand and in line with Mexican production. This generally occurs twice a year, in late fall and late winter. However, growers have observed that tying to predict times of higher demand is very difficult.
"The times of the year when white onions are in higher demand are hard to predict," Myers said. "There are periods when Mexico comes in and we do buy from them in season to cover any additional demand. The Mexico season usually starts volume production from mid - late February as well as late October to late November. This is the typical pattern although it has been known to vary."
