BUSINESS NEWS
Onion prices to make you cry
Posted Fri, 03 Nov 2006
Onion prices may rise by as much as 100 percent after a hailstorm in the Northern Cape on Sunday destroyed between seven and 10 million onions, an onion grower said.
Wildeklawer, South Africa's largest onion grower, said on Wednesday the destruction of crops on its farm near Barkly West was "likely to cause a national onion shortage and consequent price increase."
Spokesperson Louis de Kock said the shortage could result in onion prices rising by up to 30 percent in the short-term, and by as much as 100 percent towards the end of the year.
De Kock said additional factors such as the planting of 25 percent less onions this season and an increase in export orders would add to the shortage.
An "unusually hot summer in Europe" has also increased the demand for South African onions.
De Kock said export orders for sweet onions had risen by 80 percent, and Wildeklawer had to meet these orders.
This would put greater pressure on local supplies and price
levels.
De Kock warned consumers against panic buying.
"Onions will be available and consumers are best advised to buy sensibly in terms of their needs and to store in cool, dry conditions," he said.
Wildeklawer produces about one-third of South Africa's total annual onion production.
Sapa
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