Record Low Prices for Onions in Ukraine: A Price for Onions is Less than 10 Cents per kg
According to EastFruit analysts, the announcements began to appear on the sale of onions from the 2020 harvest at record prices on the Ukrainian market. Currently, it is possible to buy high-quality onions from a farmer in the southern regions of Ukraine (usually the Kherson region) at UAH 2.5/kg, which is equal to 9 US cents.
According to the wholesale price monitoring system, at the end of last week, vegetable growers in the southern regions of Ukraine sold onions 2.4 times more expensive. Most farmers claim a higher price for onions, in particular, the most typical price is 2.8 UAH/kg, but real onions are sold at 2.5 UAH/kg.
“The average wholesale prices for onions in Ukraine today are three times lower than on the same date in 2019 when it was possible to sell onions at UAH 7.5/kg. Moreover, throughout the past season, onion prices did not fall below 5 UAH/kg. Such a price was held only in September 2019, when the onion supply on the market was maximum. The last time the wholesale price of onions at 2.5 UAH/kg was fixed on the Ukrainian market 2 years ago at the beginning of July 2018. However, after that, prices began to grow dynamically and increased over almost the entire 2018/19 season,” said Andrei Yarmak, an economist at the Investment Department of the Food and Agriculture Organization of the United Nations (FAO).
“With such prices for onions in Ukraine, we can already talk about the export of onions to Poland, Moldova, and Belarus, where prices are at the level of 25-35 US cents per kg of quality onions. At the same time, Ukraine is becoming more competitive in the EU onion market than Uzbekistan, Kazakhstan, and Tajikistan, where onions also cost about 8-10 cents per kg, but transport costs for its delivery to the EU countries reach 30-40 cents per kg,” says Andrey Yarmak.
According to EastFruit, high onion prices in Ukraine for two consecutive seasons led to a decrease in Ukrainian onion exports. In 2019, Ukraine exported the minimum volume of onions from 2011 – 13.2 thousand tons. At the same time, a record export of onions for the calendar year from Ukraine was achieved in 2013, when more than 44.3 thousand tons of these vegetables were exported.
The main buyers of Ukrainian onions in recent years are the EU countries (Poland, Romania, Estonia, the Czech Republic, Lithuania, and Latvia), Belarus, and Iraq. In 2019, Ukraine also exported significant volumes of onions to the Malaysian market.