Onion facilities collapse under weight of snow
ONTARIO, Ore. — About 18 onion storage and packing facilities in southwestern Idaho and Eastern Oregon have collapsed over the past week from the weight of snow and ice, knocking out about 25 percent of the region’s total onion processing capacity, industry sources say.
“This is major. There are a lot of them down,” said Murakami Produce General Manager Grant Kitamura.
Prices for the Spanish bulb onions grown in this region have risen dramatically as a result.
Heavy snowstorms since December were followed by near-freezing rain last week and then more snow. That has caused many structures throughout the Treasure Valley area to collapse.
Kitamura, chairman of the Idaho-Eastern Oregon Onion Committee’s promotion committee, said several other onion packing or storage facilities are on the brink.
“Some are still standing but they’re not looking too straight,” he said.
Partners Produce’s main onion packing facility in Payette, Idaho, collapsed and will be out of commission for at least seven months, said co-owner Eddie Rodriguez.
“I have 25-30 million pounds of onions that were destined to run through that line,” he said.
The company’s empty inventory holding facility also collapsed.
The roofs of at least four onion packing facilities have collapsed because of the weight of snow and ice.
“At least three of them will be out of commission the rest of the season and several are wounded,” Kitamura said.
At least 14 onion storage facilities have collapsed as well.
The disruptions will affect growers as well, said Oregon farmer Paul Skeen, president of the Malheur County Onion Growers Association.
“When a shipper loses their packing line, it’s not just him but all his growers have to figure out what to do as well,” he said. “All those onions have to go somewhere.”
There are about 300 onion farmers and 30 onion shippers in the region, which produces about 25 percent of the nation’s storage onions.
About 25 percent of the region’s total onion processing capacity is currently off line, according to several sources, and demand is exceeding supply, which has pushed prices up dramatically.
The cost for a 50-pound bag of yellow jumbos has risen from about $3.50 before the damage occurred to close to $6.50 now, said Shay Myers, general manager of Owyhee Produce in Nyssa, Ore.
“It’s directly related to the disruptions,” he said.
Rodriguez expects demand to continue to exceed supply for awhile because of the production disruptions.
“I think that will be the case throughout the rest of the season,” he said.
Demand for the region’s onions typically increases significantly following the new year, Kitamura said.
But the lost production capacity, coupled with trucking and railroad transportation issues related to the severe weather, has caused a significant reduction in the number of onions being shipped, Rodriguez said.
There are usually an average of about 180 total 40,000-pound shipments leaving the area each day this time of year but the actual number right now is around 110, he said.
“There have been massive disruptions in onion production this week,” Myers said.
He’s hopeful the production disruptions will be fixed and the region’s remaining onions will be shipped. “It’s just going to take a bit of time and some plan B’s and C’s.”