According to EastFruit analysts, onion prices in Eastern Europe decline this week, unexpectedly for many.
Earlier this week we wrote about the sharp decline in onion prices in Ukraine. At the end of the week, the situation leveled out somewhat, but prices still fell by about 10% for onions of good quality, and more significantly for onions with quality issues. Pressure on onion prices was also felt in the Moldavian market, but there, so far, the price level has been maintained.
However, in Poland, onions fell in price for the first time in 2024 this week. The decrease in average prices was about 4-6%. At the moment, onion prices in Poland remain the highest of all countries in the region, and in Ukraine – the lowest in the region.
What led to a decrease in onion prices in Poland? According to market participants, the Polish market continues to receive onions from Central Asian countries, primarily from Uzbekistan. This country stimulates onion exports by providing partial compensation for transportation costs. Interestingly, wholesale prices for onions in Uzbekistan at the end of the week remained without significant changes, although traders manage to purchase products from farmers much cheaper than before.
Another reason is the increase in onion shipments from Ukraine to the markets of other EU countries. If a year earlier Ukraine was a major buyer of onions in the EU, now it has become one of the main suppliers, having restored vegetable growing destroyed by the Russian aggressors in just one year.
However, it is possible that the decline in onion prices in Eastern Europe is temporary, since in Ukraine, Poland and even the Netherlands, there are problems with the quality of onions. Therefore, farmers who are forced to sell their products reduce prices now. However, as stocks of high quality onions in storage facilities decrease, onion prices may rise again, as we discussed in our EU onion market review.
The prospects for onion prices in Central Asia are not as optimistic, because the new harvest will start there in a month, and the yield, according to preliminary estimates, may turn out to be a record one again.
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