Onion Prices Decrease Due to Overproduction and Low Quality of Harvest

In Ukraine, wholesale prices for onions have dropped to the level of 5–10 UAH per kilogram. Market experts note that this trend may persist as large volumes of medium and low-quality products dominate the market.

This is reported by AgroReview

Reasons for the Decline in Onion Prices

Onions are traditionally the second most cultivated vegetable crop in the country after potatoes. In case of a shortage, Ukraine is forced to import this vegetable. Often, when onion prices rise in spring, new companies join the cultivation, seeking quick profits. At the same time, problems with cultivation and storage technologies lead to significant crop losses. Previously, in southern Ukraine (Kherson, Mykolaiv, Odesa, Zaporizhzhia regions), the harvest was collected in August, during dry weather, which ensured quality storage. However, the geography of cultivation has now expanded across the entire country, so harvesting occurs later, in September, often during rains and temperature fluctuations. As a result, onions are more prone to disease and spoil quickly in storage, losing their marketable appearance before the end of the year.

The Impact of Climate and the War Situation on the Market

According to specialists, the current decline in prices is due to an oversupply, as many producers have decided to focus on onions over the past three years, anticipating stable price growth. Consequently, this year’s high harvest, especially in the north and west of the country, has led to a significant surplus of products, as late varieties are still being harvested there.

Additionally, adverse weather conditions have affected the quality and price of onions – due to rains and temperature fluctuations, the harvest has suffered a “double blow”: disease damage and storage without proper treatment. An important factor has also been the reduction in the number of consumers: due to the war, many people have moved abroad or changed their consumption patterns.

“Wholesale prices have already fallen to 5 – 10 UAH/kg, and this trend may continue as long as significant volumes of medium and low-quality products are present in the market,” says Oleksandr Khorev, coordinator of the EastFruit Weekly Ukraine project.

It is forecasted that the market situation may change only with the onset of spring – in the second half of the marketing season. In March-April, there may be an increase in prices for quality onions that can retain their properties by that time. However, the volumes of such products will be limited, and the final outcome will depend on the level of technological equipment of farms for storing the harvest.