September 18 2006, 10:11

Onion prices can be moderate this year

Onion production in 2006 will grow once more in 2006, according to the forecast done by the Agricultural Marketing Project (AMP). According to the information provided by recently surveyed producers, nearly one half of them extended onion production in 2006. Not more than one fifth of the producers reduced onion cultivation areas.

At the same time, the ratio of extended and reduced cultivation areas is better balanced in the leading regions of onion production. Still, the specialization and production scale tend to increase there; the gross harvest grows as a result.

The farmers say weather conditions let them have a quite good harvest this year. An average yield should not be lower than a year ago. Taking into account the acreage increase, gross harvest will grow.

The specialists considered the built-up storage capacities and the traditional interest to onion as to the commodity for long-term storage. They conclude, no significant price growth for onion can be observed this winter and spring as it was in several pervious years. The reason for it is increased supply. Despite of this fact, the specialists have no ground to prognose too low prices. At the present moment onion price is 10-15% higher than in 2005 on the wholesale markets.

The detail forecast of vegetable production and prices will be available in the next issues of "Agrooglyad: Vegetables and Fruits" journal.