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This factsheet describes the key things you'll need to think about if you're considering growing onions on your whenua. It includes:
- whenua requirements, like drainage, slope, fertility
- climate requirements, like temperature and rainfall
- management requirements, like when to plant and harvest, and how to treat pests
- economic information, like operational costs, workers required, potential profit
- compliance information, like legislation and levies to be paid.
You can use this information to help inform conversations with whānau or consultants. However, you will still need to do further due-dilgence from a qualified advisor before making land use decisions. They can help you understand:
- what works best given the natural characteristics of your whenua, along with your local climate
- how to work sustainably with your whenua, and what to do next.
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About this factsheet
The information in this factsheet is based on research conducted by the National Science Challenge, Our Land & Water funded programme Whitiwhiti Ora in 2022 and 2023, and includes land data from a range of sources. The economic data is based on data from a case study in Pukekohe and is current to June 2023. If your whenua is in a different part of the country, your numbers might vary.
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You will need to consider the characteristics of your whenua if you're thinking about growing onions. These include:
- soil drainage
- slope
- soil fertility
- soil depth
- temperature
- rainfall.
For more detailed information on whenua and climate growing conditions click here
Soil
This is key information to ensure your onions will thrive this up and coming winter/early spring.
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Drainage
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Onions grow best in deep, well-drained, fertile soils. The soil should not be prone to waterlogging and have good nutrient retention. We recommend not using soils with stone contents greater than 5% for tillage and harvesting.
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Slope
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Growing onions is suited to flat or gently rolling whenua. This is to help with the access and operation of machinery. We recommend less than 3-7 degrees slope due to increasing erosion risk and machinery requirements.
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Depth
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Onions need a soil depth of at least 60 cm (highly suited) and 45-60 cm (suited) to grow well. Their shallow root system absorbs nutrients and water in the upper soil layers. We recommend that other crops be grown in rotation and suggest a deeper soil than the rooting depth of 25 cm.
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Fertility
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For good onion growth and yields, various nutrients are required. This includes:
- Phosphorus - to stimulate root growth
- Potassium and sulphur - to contribute to the bulb yield and quality
- Nitrogen - carefully managed to achieve high yields
- Boron, iron, magnesium, and zinc - in smaller quantities to produce premium bulbs.
It's important to test your soils before planting your crop. Many companies offer this service. This will help you understand the current fertility of your block and nutrient requirements. Optimal soil pH is greater than 6.
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Climate
Onions don't like to be too wet or too dry, and they also need warm enough temperatures for bulbs to form and grow
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Temperature
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In Aotearoa, onions are usually planted in winter/early spring between June and September. However, this depends on where in the country you are located, for example in Canterbury planting happens in early Sept. They need temperatures above 15.5°C for bulbs to form and temperatures within 21 - 27°C for ideal for good growing conditions.
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Rainfall
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Onions need 3 or fewer days of rainfall within 7 days at harvest (1-Jan to 30-Mar). Too much rain can lead to rot and too little rain can affect the growth of plant shoots and bulbs.
At harvesting, onions need at least 5 days to completely dry to prevent rot.
If you're thinking about growing onions on your whenua, check your region's rainfall and rain intensity. This is important while your onions are growing and before harvesting.
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Onions need to be managed throughout their lifecycle. You will need to consider the following if you are thinking about growing onions on your whenua:
- planning - what species of onion to plant and when
- planting and maintenance
- harvesting
- storage
- managing pests and diseases
- environmental risks and impacts.
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Planning
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Onions are an annual crop, meaning you will get one crop over a 12 month period.
When planning to plant onions, you will need to consider your geographic location and the types of onions suited to this location. Different varieties of onions will grow better in the North and South Island due to the day lengths. For advice on what types of onions suit your whenua, talk to Onions NZ.
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Planting and maintenance
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There are three phases of onion growth:
- vegetative phase, when the leaves form,
- bulb formation, and
- blooming, otherwise known as bolting.
You may need machinery to prepare your whenua for planting onion seeds.
Onion seeds germinate when the temperature and moisture conditions on your whenua are favourable. In Aotearoa, this is usually during June - August.
Onions will grow for 7 - 9 months before they're ready to be harvested (November - early April). When the necks of onions become soft and the tops fall over, harvesting can begin.
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Harvesting
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Harvesting onions can be done by hand or using machinery. This is dependent on how mature or vulnerable the bulbs are.
After harvesting the onions from the ground, they're left out to dry on top of whenua. This helps them develop a protective skin and minimise any rot forming. After drying out for around 5 days in the sun, they're collected and transported to a packhouse.
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Storage
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After harvesting your onions, the storage of your crop is very important. This ensures your crop can get to international and domestic markets in the best possible quality.
Packhouses will store your crop for at least 10 days. This helps to finish the curing process and maintain the quality of the crop. A cool store will hold your onions for longer periods to be sold later in the season.
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Managing pests and diseases
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Onions can be affected by fungal diseases and pests like aphids and thrips. You will need consider using pest management methods, such as:
- counting the number and species of pests weekly
- monitoring crops to assess plant health
- making the environment attractive to insects that can eat pests
- targeted use of fungicides and pesticides.
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Environmental risks / impacts
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The main environmental risks of growing onions relate to poor management of fertiliser application.
Nitrate leaching
If you apply too much fertiliser, at the wrong time, it can pollute our groundwater and connecting waterways if it travels beyond the plant root zone. This is called nitrate leaching. Leaching is more likely to happen when there are long wet periods, especially in autumn and winter.
To manage the risk of nitrate leaching, you can:
- stay informed about weather patterns to avoid applying fertiliser during long wet periods
- do soil testing to help you understand the nutrient levels in your whenua. This will help you determine how much fertiliser to apply without over applying fertiliser.
- plant a deep-rooted crop immediately after harvesting your onions. This will absorb excess nutrients in the soil
- provide routes for runoff of rainwater to mitigate the impact on waterways.
Learn more about good environmental practices
Degraded soil structure and fertility
The more you use the soil for growing crops, the soil structure and fertility degrades over time. This impacts your whenua's ability to support growing crops.
To help your whenua support further crops of onions, you will need to consider:
- testing your soil to understand its fertility and soil structure.
- adding nutrients to help the soil recover.
- planting a deep-rooted crop after harvesting your onions to absorb excess nutrients.
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Turning a profit from growing onions can be affected by many factors. If you are considering growing onions, you will need to think about:
- the industry - like Onions NZ and the export market
- requirements - like scale, jobs, equipment, and infrastructure
- costs - like variable costs and production costs
- returns - like yield and operating profit.
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The industry
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Onions NZ
Onions New Zealand represents 85 growers and 18 exporters. Export members of this group pay a voluntary levy to fund collective research into market access.
Facts and figures about onions
Export market
New Zealand's onion export market was worth about $150 million in 2020, with Europe making up 40% of this market.
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Requirements
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Scale
Onions can return a profit from a small or large-scale enterprise. Turning a profit from growing onions depends on several factors, like:
- your location - access to the market, or infrastructure, or to a packhouse
- your production practices - modern machinery and equipment or smaller scale efficiencies
- the market demand and access to the market
- your operational efficiencies - larger farms may benefit from economies of scale.
Equipment and infrastructure
There are various tools and equipment needed for growing and harvesting onions. These include:
- tractors and other field machinery, for example, harvesters
- ploughs
- harrows
- seeders
- cultivators, and
- irrigation systems.
It's estimated that you'll need to grow at least 5 hectares of onions to offset the costs of investing in machinery and equipment. Contractors could be used to provide some of these services if you are farming on a smaller scale.
After harvesting your crop, you'll need well-ventilated storage sheds to maintain the quality of your onions. You'll need to sort, grade, clean, and pack your onions into bags or crates, ready for the market. If you're located near a packhouse and can partner with them, they'll help you with this.
Jobs and people
Your people and labour requirements are seasonal, based on key milestones, like planting. You'll need a mixture of unskilled labour, as well as specialists. The specialists will help you with:
- managing the crop cycle,
- pest management techniques,
- harvesting and,
- post-harvest management.
The peak demand for labour and specialists by onion farmers is during planting and harvesting times.
Estimate of people needed for onion growing milestones
Key milestones and their activities
Estimated FTE per hectare
Land preparation and planting
Plowing, seedbed preparation, and planting the onion sets or seeds.
0.1 - 0.2 FTE
Crop management
Weeding, fertilising, irrigating, disease and pest monitoring, or applying treatments.
0.2 - 0.4 FTE
Harvesting
Pulling them from the ground, removing the tops, and preparing them for storage.
0.1 - 0.2 FTE (depending on the availability labour saving equipment)
Post-harvest
Curing, drying, grading, packing, and storing.
0.1 - 0.2 FTE
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Costs and returns case study
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Case study - Pukekohe Onion farm
Here is an example of an onion farm in Pukekohe, let's imagine it had 100 hectares of onions grown last year.
It yielded 4050 tonnes of onions, bringing in a revenue of $2,200,000.
It had $1,700,000 in expenses, and the farm made a profit of $540,000.
It took 6-8 months for the onions to be ready for harvest and then sold (time to commercial yield).
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Costs
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Operational costs
The estimated operational costs to grow onions are around $17,000 per hectare per year. This depends on factors, like:
- scale of the operation
- level of mechanisation
- specific farming practices
- regional and locational factors
- market conditions.
Labour costs can be significant, especially when you're first setting up your farm. Some other examples of costs that you'll need to consider are:
- seeds or sets
- fertilisers
- pesticides and herbicides
- agrochemicals for onion cultivation
- skilled and unskilled labour
- permits, licenses, or certifications
- compliance with regulations and food safety standards.
Costs
There are some costs you will need to consider, and these will change with the amount produced. Here are some examples:
Type of cost
Variable factors
Onion seeds or sets for planting
Onion variety, quality, and quantity
Fertilisers and soil amendments
Quantity and type of fertiliser
Pest and disease management
Control measures and treatment
Irrigation
- Water usage fees
- energy costs for pumping water
- maintenance and repairs
- additional infrastructure
Labour
Wages, benefits, and labour requirements at different stages of production
Harvesting and packaging
- Labour costs
- packaging materials
- grading
- sorting
- packaging
Storage
- Electricity or cooling costs
- monitoring equipment
- post-harvest handling and storage
Marketing and distribution
- Transportation
- packaging
- promotional materials
- marketing channels like wholesalers of vendors
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Returns
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Yield (and time to profit)
It typically takes several years to establish a sustainable and profitable operation.
Maximising the amount of good quality onions grown will increase the profits you earn. Factors that can contribute to higher onion yields include:
- crop management
- variety selection
- planting density
- nutrient management
- weed control
- harvesting at the right time.
Revenue
Returns from onion farming are influenced by a variety of factors, including:
- market conditions
- yield
- quality
- production costs
- pricing strategies
- events beyond your control, for example weather conditions or market fluctuations.
Things we can do to create better returns include:
- efficient practices to maximise yield and production.
- market demand and pricing
- quality and grading
- Cost management
- Storage and post-harvest handling
- Value-added opportunities
To help you make informed decisions and maximise returns, it's important for you to:
- stay informed about market trends through research.
- maintain good relationships with buyers.
- regularly assess your farm's production and financial performance through tracking costs.
Operating profit
To estimate your operating profit, you must look at the money generated from selling your onions, minus your production costs. Some factors may affect your revenue and influence your farm's operating profit. These include:
- farm size or the size of your onion crop area
- yield - the quantity of onions sold
- market conditions and fluctuations
- production costs and efficient farming practices
- pricing strategies
- weather conditions.
You will need to consider your production costs, which can include:
- labour
- seed costs
- fertilisers
- irrigation
- pest and disease management
- machinery maintenance
- storage
- packaging
- marketing costs.
These costs can be affected by having efficient farming practices and effective cost management.
Each farm will have factors specific to them and different market dynamics. Keeping accurate records of your production and financial records can help you see where improvements could be made and increase your operating profit.
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Using this information safely
You should talk to agricultural experts, industry associations, and experienced onion growers in your region to get:
- more precise information and insights tailored to local conditions and market dynamics, like expected onion yields
- valuable guidance on the optimal property size and practical advice based on their experiences
- help analysing your financials and assess a timeline of when your farm may be profitable.
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There is legislation, industry requirements, and standards to meet when growing or selling your onion crop.
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Export requirements
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Aotearoa exports onions to over 45 countries. The authorities can provide information on what's needed to export onions, including:
- procedures
- documentation
- fees or licences
- packaging standards
- biosecurity requirements.
To export onions, you need to follow legislative requirements, including:
- paying levies to Onions New Zealand and Horticulture New Zealand on the sale of your onions
- meeting export requirements, like documentation and packaging standards
- ensuring food is grown so it can be sold under the Food Act 2014
- meeting regulations around risks to freshwater.
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Levies for onion sales
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You would pay $0.14 per $100 of sales to Horticulture New Zealand, which goes towards industry-wide maintenance and development activities.
You would pay $2.50 per ton sold to Onions New Zealand and the last levy year is 2025. If the amount or ending year changes, you will be notified. This money is for crop-specific activities, like research and development or domestic promotion.
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Food Act 2014
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You must comply with National Programme 1 requirements under the Food Act 2014. This includes:
- following safe food practices, like checking for pests and using clean water
- registering your business with either your local council or MPI
- getting your business verified.
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Resource Management Plan 1991
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You will need a freshwater farm plan, either now or by 2025 if your whenua will have:
- 20 hectares or more of arable and/or pastoral use, or
- 5 hectares or more of horticultural use, or
- 20 hectares or more of combined uses.
These plans identify actions to manage and mitigate risks of on-farm activity to freshwater. They must be certified and audited, then recertified every 5 years.
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Certifications and registrations
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Some additional certifications and registrations may make your onions more appealing to buyers.
You can choose to get certified with NZGAP for a yearly fee. Some retailers and wholesalers only take crops from an NZGAP-certified supply channel.
If you are planning to export onions, you can register with Asure Quality to be listed as being onion smut-free. Onion smut is a destructive fungal disease.
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Here are some resources for further reading.
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