Onion Industry to Begin Strategising to Capture Domestic Markets

Article by: Hari Yellina (Orchard Tech)

Other nations could be chomping down on more Aussie onions in the future, with growers back home set to benefit as well. The onion industry has released a new export strategy detailing a strategic roadmap to guide the industry’s export development investment decisions to ultimately improve both the export and domestic onions market. It is hoped the direction will help pull onion exports up to where they have been in the past.

Although around 15 per cent of Australia’s onion volume is exported, it used to be a much higher proportion of total production. Strategic planning consultancy McKINNA et al have created a strategic five-year export plan 2021-2026 for the Australian onion industry as part of the Onion Industry Export Strategy.

The strategy was developed following a detailed market and competitor analysis, known as the Market Mapping Report with leading onion exporters and marketers also included in the consultation.

The project has resulted in two key outcomes:

1. a clear understanding of which export markets offer growth opportunities and;
2. industry consensus on export development and growth priority activities and investments.

The Export Strategy recognises the highly competitive global onion market which is dominated by India and China who set price expectations in many of the markets in which Australia competes. Therefore, Australian exporters must compete based on premium quality and product integrity. Onion Export Strategy project lead Dr David McKinna said the strategy hopes to grow the onion export market as the opportunities exist; they just need to be explored.

The Export Strategy recognises the highly competitive global onion market which is dominated by India and China who set price expectations in many of the markets in which Australia competes. Therefore, Australian exporters must compete based on premium quality and product integrity. Onion Export Strategy project lead Dr David McKinna said the strategy hopes to grow the onion export market as the opportunities exist; they just need to be explored. Tasmania, South Australia, and Western Australia are producing 97 per cent of the export volume, with Tasmanian onions accounting for 52pc of the total export trade.

The strategy can be part of growers plans to manage supply volumes on the domestic market which will benefit all. The organisation is keen to explore the new markets particularly with the guidance and support of the export strategy findings.