Wholesale onion prices in Ukraine have declined further since the middle of last week, according to analysts from the EastFruit project, as supply remains above market demand.
Producers had expected prices to increase at the start of spring as lower-quality stock exited the market. However, volumes remain elevated, and prices continue to trend downward.
Producers are currently offering onions at 3 to 8 UAH per kilogram (US$0.07 to US$0.18 per kilogram), which is on average 19 per cent lower than at the beginning of the previous working week.
© EastFruit
Farmers report that pricing pressure is linked to the continued presence of medium- and low-quality onions. Warmer weather has accelerated sales from storage, as product quality declines, increasing market supply.
At the same time, trading activity remains limited, further weighing on price levels across the segment.
Compared to the same period last year, onion prices in Ukraine are currently around 49 per cent lower.
Market participants indicate that current conditions reflect a combination of increased supply from storage and limited demand, with quality variation continuing to influence price formation.
Source: EastFruit
