Hort's FTA windfall
NZ onion growers are getting an extra $3 million this season for exports to the European Union, thanks to the early ratification of a free trade agreement (FTA).
A tough onion growing season in New Zealand is causing ripples both here and abroad.
Onion prices have soared on the back of a low yield and the increased price of fertiliser and diesel.
In New Zealand, the humble brown onion has gone up 200%, and red onion is even more expensive.
Onions New Zealand chief executive James Kuperus told journalists last month that a tough growing season has contributed to the high price of onions.
"It was very dry last December and January, which has led to a decrease in yield."
Supply is tight as New Zealand is at the end of last season's crop and the new season's crop is about to be harvested, he added.
A decreased yield means onions cost about 72 cents a kilo more than at this time last year, Kuperus said. Other costs had also gone up and some of this has been passed on.
"We've had fertiliser prices go up from around $900 a tonne to $2,000, so that's doubled; we've had agri-chemicals go up in price," he added. "Diesel has gone up from 80 cents a litre to around $2 a litre over three years - so these increased inputs are double, sometimes nearly triple."
Meanwhile in Fiji, the new Coalition Government had to address soaring onion prices during its first week in office.
The Consumer Council of Fiji has assured consumers that the shortage of onions and its sudden hike in price is a temporary issue.
The council says upon liaising with several traders and wholesalers, they have been informed that it is a seasonal issue whereby there is a shortage of onions in New Zealand.
It added, as a result certain traders are importing onions from the United States to meet the local demand.
Fiji's new Minister for External Trade and Co-operatives, Manoa Kamikamica, says due to a challenging growing season in New Zealand, supermarkets in Fiji have consequently experienced a shortage of supply of onions.
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