The price of onions is falling: what is the reason

Prices for onions in Ukraine have significantly decreased due to a drop in demand and increase in supply. Small farms are actively selling off products from unequipped storage facilities, which leads to a 13% decrease in value over the week. This UNN writes with reference to EastFruit.

Details

This week, Ukrainian farmers are forced to reduce selling prices for onions. According to market participants, the negative price dynamics is due to several factors at once. First of all, the demand for onions has significantly decreased. 

At the same time, the supply on the market has noticeably increased, as small farms began to actively sell off produce from unequipped storage facilities. Farmers are ready to make concessions in order to sell stocks before the onset of frost.

Currently, Ukrainian producers are offering onions at prices ranging from 8 to 14 UAH/kg, depending on the quality and volume of the batch, which is on average 13% cheaper than at the end of last week. Producers note a noticeable decrease in demand, while supply continues to grow. The increase in supply is due to farmers' attempts to get rid of substandard onions faster, which are not suitable for long-term storage. The main buyers of such products are retail chains and resellers for quick resale.

It should be emphasized that today onion prices in Ukraine are on average 20% lower than in the same period last year. However, it is not easy to buy quality onions now: many producers have put them in storage, expecting to sell them exclusively in the second half of the current season.

Recall

First Deputy Minister of Agrarian Policy and Food Taras Vysotskyy saidthat sugar prices are likely to decrease until the end of the year. However, prices for bakery products, vegetables and fruits may rise in the event of a power outage.

Since August, the price of dairy products has increased by 30%, and is expected to grow by another 5-7%Nov 15 2024, 08:21 AM • 32913 views