August 14 2006, 11:05

Ukraine has good opportunities to export onion this year

This season Ukrainian farmers plan to have a top record harvest of onion. To the opinion of the analysts of the Agricultural Marketing Project, significant price pressure on onion market is possible after active onion harvesting is finished. Traditionally, onion is one of the most profitable crops for the producers, as, actually, prices are much higher than onion production cost. There is practically no problem to sell onion, especially for those farmers who manage modern storages.

However, this year Ukrainian market will possibly be oversaturated with onion. In fact, there is practically no experience in this crop export; modern storages are in deficit; in these circumstances, the price is likely to decline dramatically.

But, Andrey Yarmak, the Deputy Director of the Agricultural Marketing Project, says that the prices can stay high even in new season, even in case of excessive onion supply. One of the reasons for that is poor onion harvest in EU and Eastern Europe countries as a consequence of unusual heat and draught. Even in neighboring Poland the farmers confirm information about the possible dramatic reduction of this crop harvest. At the same time, onion harvest prospects are good in Ukraine.

So, if European countries start suffering from onion deficit, they will probably search for the opportunities to import this commodity from abroad. As to the present moment, the interest to Ukraine from the side of potential foreign buyers of fruits and vegetables has significantly increased. Not less than 100 foreign companies are expected to participate in the international conference "Fruits and Vegetables of Ukraine 2006. Open market". Most of them will represent large wholesale companies from Holland, Poland, Russia, Baltic countries and other European states.

During the conference an exclusive price forecast for vegetables and fruits in Ukraine in a new season will be presented, as well as the strategic perspectives of the potential development of Ukrainian produce market.