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Onion Expert

Pea Seed Harvest

Ashley Narvaiz - Thursday, July 31, 2014

5-6 days prior to these pictures being taken, this field was full, lush, and green. Now, after the pea plants have been cut, placed in rows, and dried by our Oregon sun, they are ready to be put through the combine to separate the chaff from the seeds.  

 


Owyhee Produce partners with farms in the mid west to provide them with the pea seeds they need to grow peas in their fields. Our climate is not conducive to growing peas, and the midwest doesn’t have a climate that can grow great seeds. Each area has been able to use their climate to the best of its ability by partnering together for the best possible result.

 

Before running the combine over the field, the moisture level is checked using the above canister to make sure the seeds have a moisture content under 14%. Anything over 14% will lead to the seeds molding during transportation.

 

As the combine runs over each row, everything is picked up by the rotating feeder at the front. As soon as the chaff and seeds enter the machine, they begin a process of separation.  The rotating, back and forth motion within the combine shakes the chaff off of the seed. The lightweight chaff is pushed over the top and out the back of the machine, while the heavier seeds are kept and compiled behind the cab.

After making a full run and filling the combine, the seeds are transferred to a truck in the field. That truck is taken to our facilities and the product is put in bins to be shipped and stored in Ontario. The seeds go through a super fine cleaning and two tests, one for germination and one for purity. Its imperative that the seeds are able to reproduce a fresh pea variety, and that  the group of seeds are of one single variety. The seeds will then be re-grown and harvested as fresh peas next season. 



The Art of the Onion Contract

Blake Branen Rosencrantz - Thursday, June 05, 2014
For those who don’t deal with onions on a daily basis, onion contracts can seem like a foreign concept. We’d like to share our knowledge of the onion market so that you can have a better understanding of the benefits contracts offer – for your day-to-day business and your bottom line. Shay Myers, a local Grower/Shipper, and John Vlahandreas, a Veteran Onion Buyer, answer the FAQ’s regarding contracts based on their years of experience:

 

When is a good time to contract?

Shay- The best time for a customer to come to me for a contract is a month or more before my planting season even starts. There are many ways to grow an onion: you can focus on size, single centers, storability, sweetness, pungency, duration of season, or any other variable. If I know what to grow and how to grow it, I can assure the best results for my customers. That is why buying from a true grower/shipper/marketer is so important. While custom packers have volume, they have little control over the growing process.

 

John - Know what your customer’s needs are and what they are doing with their onions. Some may need onions more suitable to food service and others to the retail market. Knowing when to switch from old crop to new crop is also key. Contracts should be setup a month before the start of planting. This will assure the most consistent and competitive pricing. Contracting without the outbound business there is a gamble, but if you have committed customers you should contract year round.

 

 

Who should contract?

John - If you are in food service, processing, or other areas with consistent outbound pricing you should contract; anything with a structured retail price. Worst case scenario you should be at least 50% contracted. This will help hold you average and protect you in high and low markets.

 

Shay - I agree with John on all points except one. History has shown that the average “spot market” prices are $1-1.50 higher than the average contract price. So if you are going to error, error on the side of a contract. On average you will come out a winner. Also take into consideration that if a contract is higher than the “spot market” you are usually talking about $.50 to $1.50. On the other hand, if the “spot market” is higher than the contract you may be talking as much as $10-$15! See the graph below for a clear picture of the savings.

 

With whom should you contract?

Shay - As a Grower/Shipper, of course I think you should contract directly with the grower. Working directly with the grower you can get your onions grown the way you need them, especially if you go to them early. If you contract with a “custom packer” you won’t have the same type of control. They will bring onions in from many different growers, almost all of whom are looking at maximizing their yields, which may have an impact on your quality and length of shelf life.

 

John - Contract with the person you are the most comfortable with. You may wish to contract with a larger company because they will have more shippers to turn to cover a contract. It may also be smart to split up your contracts. You could do one with a marketer (broker) and one directly with a shipper.

 

Why may onion contracts be more important than contracts for other agricultural commodities?

John - Onions are used in large volume across the country. Onions have a tendency to go up and stay up, unlike leafy items that go up in price, but quickly come back down. A contract will give you a steady control over the price of your onions so you don’t lose money in a time of high fluctuation.

 

Shay -Onions are not like other commodities, they are sold on a world market. Weather, draught, and disease in places thousands of miles from the USA can have dramatic impacts on the market here in the USA. On the other hand, commodities that can’t be shipped across entire oceans, and are destined to be sold domestically, tend to be less volatile over the long- term.

 

 

Some would argue that following a year with high prices, that it is a wise time not to contract as farmers like to “chase money”, but with onions that isn’t always a wise move. Like other commodities, the down swing on onions may be 20% when compared to the spot market, but the upswing can vary from many other commodities. Instead of seeing just 20-40% on the upswing of the market, as is generally the case with ag commodities, it is not uncommon to see increases of 200% or more when it comes to onions. In other words if you don’t have a contract, it doesn’t take long to wish that you did.





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