A sharp drop in onion prices in Ukraine: what is happening?

Ukrainian producers are forced to lower prices for last year's onions, as the end of the season is accompanied by low trade activity and a rapid increase in supply. Daily price adjustments have become a necessity for farmers.

This is reported by analysts of the EastFruit project. They note that this week most Ukrainian farmers began mass harvesting of the new onion crop. This led to a significant increase in supply on the market, which in turn caused a sharp decline in product prices last year.

Onion prices for the 2023 harvest fell significantly earlier this week. Currently, Ukrainian farms are selling last year's onions at a price of UAH 14-20/kg, which is a quarter less than last week, when prices did not fall below UAH 18/kg.

In addition, new onions from local farms are already on the market. Selling prices for it vary between UAH 16-22/kg. This puts additional pressure on the market for last year's produce, forcing farmers to look for ways to lower prices even more.

Analysts note that now the price of last year's onions has fallen by 52% compared to the first half of June 2023. Such dynamics are caused by a significant excess of supply over demand and the need for farmers to quickly sell their products.

Market players predict that the downward trend in prices will continue. Due to low trading activity and constant increase in supply, farmers are forced to adjust selling prices on a daily basis. This creates additional challenges for producers, but at the same time enables buyers to purchase onions at a better price.