A downward price trend has started at the beginning of this week on the onion market in Ukraine, EastFruit project analysts report. The main reason for the reduction in prices in the segment was a noticeable weakening demand, as well as the systematic supply of onions from the countries of Central Asia.
Since the beginning of the week, onion prices in Ukraine have fallen by 13% on average. Today, Ukrainian farmers sell onions at 20-25 UAH/kg ($0.55-0.68/kg), depending on the quality, while the minimum onion prices did not fall below 23 UAH/kg ($0.63/kg) last week. Producers are forced to reduce prices due to a noticeable decrease in demand since wholesale companies and retail chains formed commodity stocks before the New Year holidays and have not yet sold the available volumes by now. At the same time, the quality of products in non-equipped storage is rapidly deteriorating, as a result, their owners reduce prices to stimulate sales.
However, it is worth noting that high-quality onions in Ukrainian farms currently cost 2.9 times more than at the end of December 2021. Moreover, farmers are confident that the growth rate of onion prices in Ukraine will accelerate significantly after the New Year holidays. They justify their opinion both by the limited supply of high-quality onions in Ukrainian farms and by a significant reduction in the onion yield in most EU countries.
For more information: east-fruit.com