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Higher input costs are the cause

UK onion prices continue to rise

For the first three weeks of September 2021, the average Mintec price of UK onions was GBP 0.49/ 25kg, 1.2% higher than the average price in August 2021, and 17% higher than the average price in September 2020.

The increase in British onion prices can primarily be attributed to increasing input costs. UK growers are facing higher costs for fertilizer, energy, transport and labor. These costs are then passed onto consumers. Transport and labor costs have been rising in 2021, with restricted travel continuing to impact the flow of migrant labor from Eastern Europe to the UK.

The UK imports a vast majority of its onions from Europe. The current shortage of lorry drivers and high shipping costs have made importing from Denmark more expensive, passing the additional cost to the importer.

The UK is expecting an average yield this year, despite the extreme weather conditions experienced earlier. Demand for onions in the UK has been robust over the last few months, in line with the reopening of the foodservice sector, and retail sales remain strong.

Mintecglobal.com reports that British onion prices are likely to continue on an upward trend for the remainder of the year, with input costs projected to remain firm.


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