Information for fruit and vegetables business in CIS
Excess onions in Ukrainian market unexpectedly lead to higher imports from Poland
According to Fruit-Inform, while Ukrainian farmers restrain sales of their onions in the hope for higher prices, Polish farmers - who as well faced overproduction - try to get rid of excess onions in every possible way seeing no price prospects in the current season.
Polish producers often agree to sell their produce at EUR 0.03-0.04/kg that is half as high as Ukrainian farmers' minimum selling prices in the southern regions and three times lower than Ukrainian producers' prices in the central and western regions.
As a result of such a price imbalance, Polish onions began to be actively imported to the western part of Ukraine. Wholesale prices for this produce in the Ukrainian market are almost the same as for domestic onions. At the same time, it is easier and more profitable for Ukrainian intermediaries to have business with Polish produce.
“Polish onions' appearance in the Ukrainian market only aggravates the problems of local vegetable producers, as the demand for domestic onions decreases”, Mrs. Tetiana Getman, Head of Fruit-Inform, says. “For the present, this factor's impact on the Ukrainian market is not significant. However, if Ukrainian producers do not react properly and do not revise their sales plans (as there are no onion price growth prospects in the current season), imports from Poland will only continue to grow.
We would remind you that more detailed information about the Eastern European market for potatoes and traditional vegetables (onions, white cabbages, red beets, carrots) will be presented at the Fourth International Conference “Potatoes and Vegetables of Ukraine – 2012”, Kiev, Ukraine, February 16-17, 2012.