Ukrainian farmers are forced to reduce selling prices for onions this week, according to analysts of the EastFruit project. According to market participants, the negative price trend is caused by several factors at once. First of all, the demand for onions has fallen significantly. At the same time, the supply of onions on the market has increased significantly. Small farms began to actively sell out of unequipped storage facilities and are ready to make concessions in the hope to realize the available volumes before the onset of frost.
To date, Ukrainian producers are ready to ship onions in the range of UAH 8-14/kg ($0.19-0.34/kg), depending on the quality and volume of products, which is on average 13% cheaper than at the end of last week.
Producers of these vegetables report a noticeable weakening of demand for onions, while supply on the market continues to increase. The increase in supply is due to the desire of farmers to get rid of substandard onions as soon as possible. At the same time, the demand for such products remains relatively low, mainly such onions are purchased by chains and resellers for current sales, as they are practically unsuitable for long-term storage.
It should be noted that today onions in Ukraine are already on sale on average 20% cheaper than in the same period last year. We would like to add that according to market participants, it is quite difficult to buy quality onions at the moment, as many producers have put such products in storage and plan to sell them only in the second half of the current season.
You can get more detailed information about the market development of onions and other horticultural products in Ukraine by subscribing to the operative analytical weekly – EastFruit Ukraine Weekly Pro. Detailed information about the product can be found here.
