Kay Riley: Market slowed but optimism still high
Kay Riley: Market slowed but optimism still high
Ten days before Thanksgiving, Idaho-Eastern Oregon Onion Committee veteran Kay Riley said the 2015-16 onion market had seen a slowdown from its early, strong start, but Riley, general manager of Snake River Produce in Nyssa, OR, also said the Treasure Valley is still optimistic overall.
“We had our earliest start on record,” Riley said of their late July harvest and shipment start of Aug. 4. That start date put the region ahead in loads from the jump, and while Riley said the valley is “still ahead of any previous season” in numbers of loads shipped, he noted that “the last 30 days we’ve had movement and demand that’s a little lackluster.”
He said business in general had slowed, noting potato shippers in Idaho had told him they were seeing the same trend. “The market started out really good but has slowed — but it’s still better now than this time last year,” he said.
Transportation Manager and Sales/Marketing Assistant Tiffany Cruickshank said movement in September allowed prices to increase, which ultimately brought about the slowdown.
“But we’re optimistic,” Riley said. “Quality in the area is OK, in places a little variable. Red demand has slowed some but the market is still strong. Unfortunately many reds go to foodservice contracts, and there’s not a lot of pressure on them because they’re on contract pricing.”
One bright note is the availability of trucks, but Cruickshank said demand for trucks for the Christmas tree shipping period will likely mean more rail shipments for onions.
Riley said that in the past five years, Idaho-Eastern Oregon Onion Committee members have had four different local Union Pacific managers, and as of Nov. 17 they were without a manager. Additionally, four different customer service reps have served the area in five years, with a new person in the office now.
Rail prices are also an issue, with prices listed in August high and shippers turning to trucks when they might have used UP.
Riley said, “All of those headaches, including delayed delivery times and car placements, make rail not worth it.”
Rates have come down since August, Cruickshank said, but she added that delivery times are still not optimal.
The two said they are seeing a bit of a bump in demand in the Southeast.
When asked what would most bolster the onion market, Riley said increased exports, and he said the Trans-Pacific Partnership proposes eliminating tariffs on onions going into Japan. That, he said, would likely increase exports out of Washington, reducing onion supplies in domestic markets.
Pertaining to the recently released final ruling on the Food Safety & Modernization Act by the FDA, Riley said the portions dealing with water treatment were welcome.
“This ruling is much better than the original, which would have had us testing water more frequently and either treating it or not using it,” he said. “Now we understand the testing will be done by local water districts, and all growers will have access to the information.”