1. In a large saucepan on low heat place your diced onion, garlic powder and pickling spice. Cook onion and garlic for 5-10 minutes stirring every so often to make sure that the onion doesn't brown.
2. Add all the remaining ingredients and turn the heat up to bring the mixture to a boil. Once boiling turn the heat down and let it simmer on low for 1 1/2 - 2 hours. Let the ketchup cool.
3. Using a blender or immersion blender, blend the mixture so it is smooth.
4. Pass the ketchup through a fine meshed strainer to remove any pieces and place the ketchup in clean, glass containers.