Despite the seasonal depletion of stocks, Ukrainian producers are being forced to lower prices for onions, according to analysts at EastFruit. Market players report that the downward price trend is driven by several factors. In particular, buyers are increasingly dissatisfied with the quality of the offered onions and are reducing their purchase volumes.
As of today, Ukrainian farmers are ready to ship onions at prices ranging from 16 to 26 UAH/kg ($0.39–0.63/kg), while just last week, the minimum price did not drop below 18 UAH/kg ($0.43/kg). This means that wholesale prices in the segment have decreased by an average of 12% in one week. Producers were compelled to reduce prices due to stricter quality requirements from wholesale buyers, who are now refusing to purchase substandard products.
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Farmers describe the current end-of-season price decline as a forced measure. They say the market has a relatively large supply of low-quality onions, as some farms delayed sales until the second half of April in anticipation of better price conditions.
As a result, onion prices on the Ukrainian market are now on average 12% lower than during the same period last year. Moreover, market participants remain pessimistic, as the quality of onions in storage continues to deteriorate and demand remains weak.
For more detailed information on the development of the onion market and other fruit and vegetable products in Ukraine, visit the EastFruit website.
