2010 DEHYDRATED ONION PROJECT
I. Preli Prelimi minar nary y Report Report
Shreekant Nair Synthite Industries Limited 27/10/2010
Introduction:
Onion is one of the important vegetable crops grown in India. Onion is produced in several states in India, with Maharashtra being the leading producer accounting for about one-fourth of the country’s onion production. India largely produces red onions used as fresh produce in the domestic market. White onions (used for dehydration) are grown on commercial scale only in the states of Maharashtra and Gujarat and that too only in a few districts Overview of onion production in country 1 as on 19th July 2010
Year 200102 200203 200304 200405 200506 200607 200708 200809
Area in '000
Production in 1000
HA
MT
495.8
5252.1
424.7
4209.5
553.8
6267.6
613.8
7760.6
703.6
9432.5
768
10847
821
13900
834
13565
STATE/UTs
1
ONION A
P
MAHARASHTRA
200.0
3146.0
KARNATAKA
141.3
2266.2
MADHYA PRADESH
57.3
952.3
BIHAR
53.0
972.0
http://www.nhb.gov.in/statistics/area-production-statistics.html
RAJASTHAN
45.0
742.5
GUJARAT
43.4
1078.6
ANDHRA PRADESH
39.0
662.6
TAMIL NADU
35.3
339.7
The production trend of onion from 1991 to 2009 is:
In India, only fresh market onions are grown and that too mostly red onions. White onions are grown on commercial scale in few states - Maharashtra, Gujarat, that too restricted too few districts. Red onion is not suitable for dehydration and export primarily due to poor quality, low productivity, low solids, low pungency level and high reducing sugars. Dehydrator onions are mostly white, having high solids > 17%; even upto 22-26% total soluble solids (T.S.S.) in some hybrids; comparatively low moisture content < 84%, globe shaped, having small root base with a minimum 70 mm diameter. These onions usually have longer shelf-life, free from diseases. Many white varieties and hybrids suitable for dehydration are cultivated in Europe and North-America. But they are mostly long-day ones suitable for temperate and sub-tropical long-day conditions.
The white varieties grown in the state is approx 10% of the area under onions. Hence the total area covered for the production of onion as of 2008-2009 is 83400 HA. Application of dehydrated onion product:
1.Onion Flakes
Widely used in varied food preparations wherever alongwith onion flavor & taste, onion's appearance & texture is desired and can be easily used in salads & other preparations / servings after redehydration. 2.Onion Chopped (Size: 3.0 - 5.0 mm) Used in dry soups, mixes, specialty ethnic food preparations, canned/dried/frozen vegetable mixes, dry casserole mixes, stuffing mixes, food service & fast food and particularly when large onion pieces are desired. 3.Onion Minced (Size: 1.0 - 3.0 mm) Mainly used in preparation of soups, sauces, canned/dried/frozen foods, salad dressings, meat products and other food products whenever onion flavor or taste is required. 4.Onion Granules (Size: 0.1 - 0.5 mm & 0.5 to 1.0 mm) Particularly applied in Vegetables & Meat preparations, gravies, sauces, seasoning salad dressings, cheese, crackers etc. 5.
OnionPowder
Free flowering powder is used in soups, sauces, seasoning, and meat products and suitable for varied food preparations, particularly when strong onion flavor and taste is desired.
Major Market :
UK, Canada, Germany, Poland, Finland, Denmark, Australia, Spain, Italy, Greece, UAE, France, Belgium, Netherlands, South Africa, Latvia, Brazil, Colombia, Chile, Argentina, Saudi Arabia, Bahrain, Philippines, Korea, New Zealand, Japan, Singapore, Israel, South Africa, Russia, East European countries and many more are the major countries where dehydrated onion products are exported. According to Maharashtra State Agriculture Marketing Board the export value of onion from last five years are :
Sr. Year
Onion export f rom India (Qty. i n LakhExport value in croresRs.
No.
M.T.)
1
2004-2005
9.44
817.49
2
2005-2006
7.70
620.27
3
2006-2007
11.61
1135.42
4
2007-2008
11.01
1285.82
5
2008-2009
16.71
1816.14
Source: www.msamb.com
Companies in onion dehydration business.
Name
State
Nature Exports
Gujarat
Jain Irrigation Systems Ltd Murutuza foods pvt ltd Pardes Dehydration Company ABS food technologies PoojaDehy Foods Pvt Ltd Natural Dehydrated Veg Pvt Ltd
Maharashtr a
Gujarat Gujarat Gujarat Gujarat Gujarat
Market Potential Analysis of dehydrated onion: U.S.A, Canada & European market
Consumption of Dehydrated Onion In 1. USA market: In terms of both farm value and per person domestic consumption, onions are one of the top five vegetables in the United States. In 2008, the average American consumed approximately 20 pounds of onions. Libya has the highest average consumption rate with approximately 66.8 pounds per year. The demand rapidly increased during the 1970s as the popularity of fast food hamburger chains featuring onions on burgers and onion rings as side orders increased. In the 1980s, the booming popularity of salad bars increased onion demand. By the end of the decade, demand continued to moderately increase as the growing popularity of pizza, pasta, salsa and other ethnic cuisines increased. The booming economy of the 1990s propelled demand for awayfrom-home foods, many of which feature onions.
Percent of consumers reporting onion consumption on any given day
Market Potential of dehydrated onion Onions: Per capita availability (fresh weight equivalent)
Year
Total
Processed Total Dehydrating
Fresh Pounds
1970 1971 1972 1973 1974 1975 1976 1977 1978
11.3 12.2 11.6 11.4 12.7 12.5 11.8 12.4 12.2
10.1 10.7 10.7 10.2 11.2 10.5 11.0 11.1 10.9
1.2 1.5 0.9 1.2 1.5 2.0 0.8 1.3 1.3
1.2 1.5 0.9 1.2 1.5 2.0 0.8 1.3 1.3
1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
13.4 12.1 11.6 14.2 13.8 14.6 15.2 15.6 14.9 16.2 16.4 16.8 16.6 17.1 18.1 18.1 18.2 18.6 19.2 19.9 20.7 20.0 19.9 19.6 21.2 21.0 23.1 22.7 21.0 23.1
11.4 11.4 10.7 12.2 12.2 13.1 13.6 13.7 13.4 14.5 14.8 15.1 15.7 16.1 17.2 16.9 17.8 18.3 18.8 18.4 18.5 18.9 18.5 19.3 19.5 21.9 20.9 19.9 21.6 19.2
1.9 0.8 0.8 2.0 1.7 1.5 1.6 1.9 1.5 1.7 1.6 2.0 1.6 1.4 2.0 0.9 1.3 0.8 0.9 1.1 2.3 1.6 1.0 1.1 1.8 1.5 1.1 1.8 1.0 1.4
1.9 0.8 0.8 2.0 1.7 1.5 1.6 1.9 1.5 1.7 1.6 2.0 1.6 1.4 2.0 0.9 1.3 0.8 0.9 1.1 2.3 1.6 1.0 1.1 1.8 1.5 1.1 1.8 1.0 1.4
Source: USDA/Economic Research Service. Data last updated Feb. 1, 2010.
If we look at the per capita availability of fresh and dehydrated onion, we can clearly see that the trend is increasing year by year. Currently the market of dehydrated onion in U.S.A in terms of quantity is nearly 1.9 Lakh Ton and in terms of value is $ 391 Million
Per capita availability of dehydrated
1.4 pounds (0.63 kg)
onion Population of USA
310362000
Total market in terms of quantity
1.9 Lakh Tons
1 Kg FOB price of dehydrated onion (average)
$2
Total market in terms of value
$ 391 Million
Market Potential •
Quantity
1.9 Lakh Tons
•
Value
$ 391 Million
2. CANADA MARKET The dry onion grown for processing market is
Year
Production (‘000 T )
Value ( $ Dollar Million)
2004
8
2
2005
5
2
2006
X
X
2007
8
2
2008
10
4
Source: Statistics Canada/ Agriculture and Agri-Food Canada Fall Survey
Dry onion import and export figures in Canada from 1995-2005 Year
Import ‘000
Export ‘000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Tons Tons 120.6 7 30.28 114.8 6 37.89 126.6 7 28.79 127.8 4 49 134.8 8 35.66 133.6 9 36.78 156.4 3 59.91 157.5 3 57.38 166.1 2 54.98 150.5 8 61.38 154.5 58.23
Source: UN Food & Agriculture stats.
3. Europe Market
Dry onion import and export figure in major European countries from 1995-2005
IMPORT Volume in '000 Tons Avera ge
Countries
Germany
1995 303,84 0
1996 314,07 6
1997 233,66 3
1999 256,35 0 114,90 6
70,928
1998 269,03 7 107,16 8 116,06 1 106,04 2
Belgium
83,956
91,693
99,431
France Netherlan ds
91,318
76,760
98,830
92,576
84,920
Italy Portugal
16,264 10,875
24,684 21,477
30,559 23,097
22,679 27,260
20,362 22,096
85,077 118,92 8
2000 244,4 02 117,9 81 90,25 5 101,5 27 39,19 0 30,19
2001 269,5 00 128,8 02 122,9 05 82,00 0 52,09 3 44,34
2002 263,0 59 144,4 35 123,6 09 107,5 28 49,47 1 34,76
2003 276,4 97 148,8 20 117,5 30 83,93 0 61,92 3 36,76
2004 272,7 96 158,3 33 118,2 93 84,45 5 60,10 8 35,57
2005 227,4 58 153,5 50 95,22 6 87,84 0 44,93 7 30,24
266,42 5 122,64 3 103,26 0 92,789 38,388 28,791
Sweden
26,090
26,862
20,250
22,344
20,689
Spain
30,008
23,484
33,136
42,435
19,972
Poland
32,696
4,973
36,959
75,823
22,240
Austria
11,958
15,084
16,819
20,562
10,184
Slovenia
7,976
8,599
9,034
9,667
24,752
Hungary
385
83
8,687
7,195
1,449
13,248
10,602
13,862
9,804
3,247
Denmark
9,858
9,102
11,329
9,967
16,302
9 23,90 8 26,79 3 20,78 9 12,60 1 18,40 2 23,16 4 15,32 2 14,56 8
Finland Switzerlan d
5,338
5,565
5,206
7,609
6,734
6,390
4,473
5,217
5,423
7,879
3,336
3,063
8,047
5,268
4,334
6,325
7,665
3,665
1,406
1,719
4,891
4,262
4,220
5,035
1,366
2,346
Greece
Norway Luxembo urg
--
--
--
--
--
2 21,39 5 35,98 1 33,70 0 16,19 7
1 25,14 1 35,93 0 43,82 5 13,03 0
9,344 15,86 4 14,34 7
9,457 10,28 5 22,91 9 10,74 5
4 24,31 7 20,43 5 54,93 5 15,16 5 12,34 2 22,51 5 29,63 2 11,59 3
8 29,82 2 50,48 0 51,06 4 16,53 6 10,53 5 13,61 3 23,09 2 10,98 2
6 29,61 4 27,84 8 18,45 5 12,03 1 12,00 4 10,83 1
9,758
24,585 31,500 35,951 14,561 12,048 9,777
9,183
15,161
8,717
11,592
6,290
5,164
5,764
5,713
9,706
3,297
5,876
5,453
4,178
3,404
3,114
3,759
2,015
1,901
1,841
1,526
1,833
Total
82402
4. International Pricing Trend of Dry Onion Bulb *cents/pound
Season Commodit y
Year
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sep.
Oct.
Nov.
Dec.
average
8.19
7.60
15.20
16.30
17.80
14.90
13.30
12.40
10.40
11.40
16.60
16.10
26.20
35.00
55.20
24.20
24.60
15.40
10.80
5.57
4.47
4.70
4.39
11.10
Onions,
2006
dry bulb
2007
8.53 22.1 0
2008
4.13
3.15
2.53
10.60
23.90
17.60
13.10
8.72
11.20
11.50
10.90
9.71
12.50
2009
9.47 11.9 0
8.44
6.99
18.40
13.40
18.00
10.80
8.58
9.24
8.23
7.97
7.93
12.20
16.70
40.00
60.40
43.90
29.20
24.20
2010
The market for dehydrated vegetables is estimated at 900,000 tones. Onions and garlic account for the biggest portion of this demand, 27% and 13%, respectively. The global market for dehydrated onions is expected to grow at a compounded annual rate of 5% for the next four years. The major markets for dehydrated onions are in the USA, Europe and Japan. Dehydrated onions are widely used by manufacturers of soups, sauces, pizzas, ketchups, and fast-foods.
II. SWOT Analysis
Strengths •
Established
Weakness in
market
as
quality ingredient manufacturer •
Strong customer base, they will be the potential customer for dehydrated onion.
•
Our major strengths would lie
in producing quality products. Opportunities •
•
Highly untapped market hence
Threats •
Competition
faced
by highly
huge potential is there
established
Market is estimated at 243000
Irrigation Systems Ltd whose current
Tons
player
revenue
Jain
from
this
sector is 400 Cr. •
Procuring raw material from the belts
of
Maharashtra
where
Jain’s have good control over farmers farming.
through
contract
Conclusions: •
The dehydrated onion market looks highly potential because the market is estimated at 243000 Tons.
•
There is a growing demand for dehydrated onion products in Western countries.
•
The dehydrated onion plant can be used for the dehydration of vegetables during off season. Dehydrated garlic, carrot, peas, tomato are in great demand from Western countries.
•
The location would be a major factor: Gujarat (Rajkot, Mahuva) and Maharashtra (Nashik) seems to be the potential location due to easy availability of raw materials and
easy access to ports.
Source of Information: •
www.jains.com
•
www.ers.usda.com
•
Horticulture board of India
•
NAFED: National Agriculture Cooperative Marketing Federation Of India Ltd
•
United Nations Food & Agriculture Stats
•
Maharashtra State Agriculture Marketing Board
