January 6 2016, 08:57 Fruit-Inform

Ukrainian farmers concerned about longstanding stagnation in onion market

Onion sales have been unsatisfactory for more than a month in Ukraine due to low demand, and sellers have not managed to stir up the market before the New Year holidays even by a decrease in their prices.

According to Fruit-Inform, now growers from the southern regions of Ukraine fix their ex-works prices of onions at UAH 5.50-6.50/kg (EUR 0.22-0.25/kg). In case of store-door delivery, prices reach UAH 7.50-7.80/kg (EUR 0.28-0.30/kg) at best. In other words, onion prices have gone down by 8-10% over the past month instead of expected growth. As regards the western regions, where prices traditionally are higher, onions can be purchased at UAH 6.70-7.50/kg (EUR 0.26-0.28/kg) there, also a decrease of 10% month-on-month. It should also be noted that onions now account for about 40% of the total fruit and vegetable supply at Shuvar Wholesale Market in Lviv (western region of Ukraine).

The situation is especially critical for middlemen, who have purchased onions at record high prices of UAH 7-8/kg (EUR 0.27-0.31/kg) in September-October. The market participants also do not expect a sharp rise in onion prices in the nearest days, as many farms and middlemen now make attempts to sell nonstandard produce, which supply has started rapidly growing in December. Nonstandard onions are now offered at UAH 4.50-5.00/kg (EUR 0.17-0.19/kg); however, the demand for them is not high even under those conditions.