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Onion prices in Russia low and not moving unlike in Ukraine

The expectations of Ukrainian onion producers regarding onion prices came true only in mid-May, while Russian producers are losing hope of making money on last year’s onions in the outgoing season, EastFruit reports.

At the beginning of this week, price for the onions from the 2020 harvest in Ukraine started to increase gradually and today arrived at $ 0.16-0.25/kg, while the range of sales remained quite wide. At the same time, the project experts were informed that the demand has increased in the segment of  high-quality onions and the stocks are rapidly decreasing.

As it can be seen from the chart throughout the second half of the marketing year, season 2020/21, onion prices in Ukraine froze and did not change despite many internal and external factors. Local farmers, selling their products at an average of $ 0.16/kg, unanimously stated that they plunged into high losses this season, and many of them just kept the product stored until recently, hoping to sell it at a better price.

Analysts of the APK-Inform: Vegetables and Fruits project  also believe that despite onion overproduction in Ukraine in 2020, average prices for onions could have stepped over the $ 0.20/kg mark by April 1. “Indeed, it is very difficult to count the real volume of the harvest, and especially of high-quality products in storages, but at the same time, the forecasts of the project experts about the lack of high-quality onions in Ukraine at the end of the outgoing season were true,” Olexandr Khorev, head of the APK-Inform: Vegetables and Fruits project, reports.

The developments on the market of last year’s onions in the Russian Federation are completely different.

As can be seen from the chart above, current onion prices are dramatically lower than in the previous two seasons, and there is no way they can increase in the near future.

At the moment, Russian farmers are reporting the depletion of stocks of high-quality onions and are trying to sell off the remaining products at prices of $ 0.11-0.19/kg. They can barely do so, since new shipments of the 2020 harvest onions keep coming from Kazakhstan, and despite the high prices of $ 0.17-0.22/kg, their higher quality attracts more buyers.

According to the forecasts of EastFruit analysts, Russian farmers can hardly hope for a significant increase in prices for the onions harvested last year, since in addition to the better quality of the 2020 harvest from Kazakhstan, there is an increase in the supply of new onions from Central Asian countries and Egypt. The price range for the onions harvested in 2021 varies within $ 0.28-0.45/kg in Russian and at the same time prices in this segment continue to gradually decrease.

As for Ukraine, where new onions also arrived on the markets, according to experts, prices for high-quality last year’s onions may continue to grow gradually, at least until the end of this month.


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