Market analysts from EastFruit report that Kazakhstan, alongside its neighbors Uzbekistan and Kyrgyzstan, has encountered a significant oversupply of onions within its domestic market, a challenge that remains unresolved on the export front. February 2023 saw a dramatic decline in Kazakhstan’s onion exports, plummeting nearly fivefold to just 15.4 thousand tons. Despite this setback, it’s important to recognize the strides made in diversifying export destinations for Kazakhstani onions.
During the December-February period, Pakistan emerged as the primary importer, receiving 77.4 thousand tons of fresh onions. Poland followed, importing 4.1 thousand tons. The UAE also featured prominently, with 3 thousand tons of onions exported – a notable success given the potential for a looming onion shortage across Asia in the near future.
Other countries that imported over 1 thousand tons of onions from Kazakhstan between December 2023 and February 2024 include Afghanistan, Georgia, and Iraq. Estonia, Turkmenistan, Oman, and Latvia also figured as significant importers.
Kazakhstani farmers have previously expressed frustration over the inability to sell onions at any price, with some resorting to feeding surplus high-quality onions to livestock. This indicates that pricing is not the root cause of the market difficulties.
EastFruit analysts, who had anticipated such market trends early in the season, observe that this scenario tends to recur every three years in regional markets. Following a year of elevated onion prices, there’s a tendency for increased investment in cultivation and, more significantly, in market speculation. Entrepreneurs unfamiliar with the vegetable market often inflate prices by purchasing onions during the harvest and storing them until August-October, only to attempt sales from January to March. This speculative cycle frequently leads to an oversupply and subsequent price drops. As this pattern is not exclusive to one nation, exporting to neighboring countries facing similar issues proves challenging.
It’s noteworthy that after a season of substantial onion waste, production typically scales back, leading to price stabilization. However, market players should exercise caution, as numerous variables can precipitate multiple seasons of either glut or scarcity in the market.
Maintain full control over fruit and vegetable prices in Turkey, Egypt, Ukraine, Uzbekistan, Russia, Moldova and other markets subscribing to EastFruit Premium.
