Texas onion growers fight off early bad market with volume and a terrific crop
For the 2012 season, Texas onion growers reduced acreage dramatically, dropping to 9,430 acres from 13,064 acres. The result, clearly, would be a sky-high market. Right?
Not so fast. The onion market actually tanked in the early going of 2012. As recently as mid-February, onions were bringing in as little as 10 cents a pound at wholesale-$4 for a 40-pound box. Texas growers were beginning to describe this year's market as "depressed."
But now, nearly a month later, they are looking at an unexplained uptick that has their product bringing $6-$7 a box -- just a hair over break-even -- and are anticipating a potential late-season surge that might salvage what started off as an awful season.
"Eighty percent of the dang onion market is psychology to begin with," Don Ed Holmes, head of Weslaco, TX-based The Onion House, told The Produce News Feb. 29. "If buyers think they're going to be paying more next week, they'll buy more today, and that's exactly what we're starting to see."
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