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- CRB Fundamentals - 2004 Commodity Articles

Onions

Onions are the bulbs of plants in the lily family. Onions can be eaten raw, cooked, pickled, used as a flavoring or seasoning, or dehydrated. Onions, by value, rank in the top 10 vegetables produced in the US. Since 1629, onions have been cultivated in the US, but are believed to be indigenous to Asia.

Onions that are planted as a winter crop in warm areas are milder in taste and odor than onions planted during the summer in cooler regions. The two main types of onions produced in the US are yellow and white onions. Yellow varieties comprise approximately 75% of all onions grown for bulb production in the US.

Prices – Onion prices in 2003 rallied to a record yearly average of $19.53 per hundred pounds, up 66% from $11.73 in 2002. The record high yearly average price in 2003 was due to an upward spike in April to $39.80. Prices, however, fell back to the $14 area by late in 2003.

Supply – US production in 2002 was little changed at 6.761 billion pounds. The farm value of the US production crop in 2002 was $716 million, up from $698 million in 2001. US farmers harvested 160,220 acres in 2002, which was a 9-year low. The yield per acre in 2002 was 42,200 pounds per acre.

Demand – US per capita consumption of onions in 2003 rose to 19.5 pounds from 19.3 pounds in 2002.

Trade – US exports of fresh onions in 2002 totaled 700 million pounds, and imports were not far behind at 610 million pounds.




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