Despite the lack of official statements from the Egyptian government on the issue of the onion export ban, which was extended until March 31, 2024 inclusive, most market participants are confident that from April 1 they will be able to resume export shipments. EastFruit analysts note that there are currently no reasons to extend the onion export ban – domestic retail prices for onions have fallen almost three times down to about 30-33 US cents per kg at the current exchange rate. Consequently, wholesale prices are even lower.
In addition, Egypt was recently forced to once again sharply devalue the national currency due to an imbalance in foreign exchange. At the same time, onions are one of the most important sources of hard currency revenues in the country’s agricultural exports. Also, according to EastFruit estimates, onion production in Egypt in 2024 may increase sharply, which could lead to an even more significant reduction in prices for this product.
“Onion prices in Europe remain high this season due to summer drought in the Netherlands, Germany, and several other Western European countries, followed by prolonged periods of heavy rains. This has led to both a decrease in yields and a deterioration in the quality of onions in the region,” says Andriy Yarmak, an economist at the Investment Centre of the UN Food and Agriculture Organization (FAO).
Read also: Fruit and vegetable exports from Egypt to Europe could increase sharply due to devaluation
He also notes that logistical problems associated with the Red Sea blockade have led to delays in onion shipments from New Zealand, which has also supported prices. On the other hand, the European Union imported large volumes of onions from Central Asian countries in the 2023/24 season: mainly from Uzbekistan and Kazakhstan. Poland also bought a lot of onions from Russia, which, by the way, even led to a decrease in onion prices in this country in March.
It should be noted that Egyptian exporters have already prepared and packaged large quantities of onions for export shipments. This can be seen, in particular, in the trade group EF Trade Platform, where the number of onion offers has increased noticably.
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