Onion Prices in South Africa Soars to a Two Year High

Published 2022년 11월 24일

South African onion prices are breaking records as they continue to rise this year. Prices are currently almost triple the prices recorded in 2021, due to lower production quality and a reduced area under onion production. Drought-like conditions throughout 2021 had taken their toll on the area planted for onions, which significantly shrank production volumes in 2022. The government is predicting that there will be a shortage of onions in the South African markets and the prices will remain strong up until Christmas.

South Africa is one of the fastest-growing onion-producing, consuming, and trading countries in the world. Because of the high domestic demand in the market, onions are a very profitable crop to grow in South Africa. It is incorporated into many local delicacies, including stews, soups, and salads, among many others. South Africa produces approximately 750 thousand metric tonnes of onions per year, of which 600 are consumed within the country. A very small volume is left for exporting to other countries. The vegetables are grown across the country, but commercial production is primarily focused in the Western Cape, Northern Cape, Free State, North West, Limpopo, and Mpumalanga. South African onion prices are breaking records as they continue to rise this year. The prices are currently almost triple the prices recorded in 2021.

The higher prices are primarily due to lower production quality and a reduced area under onion production. According to FreshPlaza, 20% to 30% fewer onions were planted, and the market now has half the usual volumes. Drought-like conditions in Western Cape and Northern Cape throughout 2021 had taken their toll on the area planted for onions, which significantly shrank the production volumes in 2022. In addition to this, a rise in the input costs—fertilizer, fuel, labour, transport, and packaging coupled with water constraints and disease pressure in certain areas are adding to the rising prices. The decrease in onion plantings in the Northern Cape as well as in Ceres, which are two leading onion production areas, added to the problem.

Onion Prices in South Africa November 2020 - November 2022

Source: Tridge Price Data.

During the period November 2021-March 2023, onion prices ranged between USD 0.20 and USD 0.25 per kg. As the planting season concluded in March and the expectations regarding the lower area under onion plantings grew, the prices started to increase. They quickly escalated from USD 0.28 per kg in the last week of March 2023 to USD 0.38 per kg in the last week of May 2023. Currently, the prices are fluctuating between USD 0.60 - USD 0.65 per kg, which is the highest they have been in the last two years. The government is predicting that there will be a shortage of onions in the South African markets. The prices are likely to remain strong up until Christmas, which is usually one of the strongest onion sales periods of the year.