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As of 15 November, Ukrainian producers have reduced selling prices for onions to 8-14 UAH/kg ($0.19-0.34/kg), which is 20% lower than last year. This is reported by EastFruit.
Market experts note that the main factors behind the reduction in onion prices are:
- Decreased demand from customers.
- The increase in supply was driven by active sales by small producers. These farms are trying to sell onions from unequipped storage facilities before the start of frost.
“Some of the onions are sold for current sales, as they are not suitable for long-term storage,” analysts explain.
Despite the general availability, it is becoming more difficult to find quality onions. Many large producers have stored their produce in modern storage facilities, planning to sell it later in the second half of the season. Instead, the market is dominated by lower quality onions, which are bought mainly by resellers and retailers for quick resale.
This year’s average price for onions is 20% lower than last year. Such a significant reduction in price may indicate a change in seasonal trends and a surplus of products in a certain period.
Experts believe that the price situation may change closer to the middle of the season, when onions from modern storage facilities start to arrive on the market. Higher quality products are expected to command higher prices due to their scarcity.
Thus, the current decline in prices may be a temporary phenomenon, creating favourable conditions for wholesale purchases.
