Price Drop in Onions in Ukraine: Causes and Market Impact
This week, Ukraine has experienced a notable decrease in the prices of one of the most common and essential vegetables — onions.
According to analysts from the EastFruit project, the reason for this situation is the active harvesting of late varieties of onions in the northern and western regions of the country, which has led to a significant increase in supply on the market.
Consequently, wholesale prices have fallen to a range of 6-13 hryvnias per kilogram (approximately $0.15-$0.31), representing an average decrease of about 20% compared to the previous week.
This pronounced price reduction signals considerable shifts for all stakeholders in the agricultural sector.Farmers are rushing to sell off their less durable onions, which are unsuitable for long-term storage due to their quality parameters.
It is also noteworthy that the current onion prices are approximately 24% lower than the same period last year.
Experts attribute this decline primarily to adverse weather conditions during the current season, which negatively impacted the harvest quantity and quality of onions.
The market situation indicates a contraction in the supply of high-quality produce, posing additional challenges for farmers trying to minimize losses.Oleg Pendzin, head of the Economic Discussion Club, recently highlighted that prices for inexpensive products in Ukraine are rising faster and more significantly than those for more expensive goods.
This trend complicates affordability for low-income population segments and signals potential further deterioration in the overall consumer basket’s quality and pricing structure.