September 20 2006, 09:43

Wholesale prices for onion are growing in Ukraine

Despite of the fact that onion harvesting reaches its peak in the southern oblasts of Ukraine, the producers are setting wholesale prices higher and higher.

According to data of the price monitoring on KOPANI wholesale market, since the beginning of September the prices have increased 20-25%, on $0.19-0.23/kg. At first the price growth was recorded only for lower price segment where the minimal level of wholesale prices increased $0.02/kg monthly starting from the beginning of September. In the beginning of this week many market players clearly understood that apple supply has been growing slower than expected. As a result, the price level of upper segment has significantly increased (20%) as well. So, the present wholesale prices exceed $0.04/kg the prices recorded at the same period of time past year.

According to information, the analysts say in their comments that major large producers put greater part of harvested onion to storages, hoping for high prices in winter period. Second, a significant difference was observed in wholesale prices in the southern and other oblasts of Ukraine. As a result, the supplies were redirected, so the market of southern oblasts received reduced shipments.

Despite of the fact that most producers expect high prices for onion in the end of this and in the beginning of next year, the analysts will be able to forecast onion prices more or less accurately only after the end of harvesting period. Only then the producers will know the harvested volumes and the quality of onion in storages. Onion production in the neighboring countries (i.e. Poland and Russia) will certainly influence the inner prices in Ukraine.