Price Update: Ukrainian Onions Will See Lower Prices

Published 2019년 11월 28일

The prices for Ukrainian onions are expected to be 50% lower this year due to a higher yield than during the previous season. Quality of this year's harvest is also expected to be lower than last year.

The onion market in Ukraine is often described as ‘chaotic’. Export is not done constantly after harvest, but rather during short, uncoordinated periods. Ukraine is therefore not a large onion exporter, ranking 40th in global exports, but produces a significant amount of onions. This year’s yield is supposed to be higher than last year, reducing domestic prices by almost 50%.

High Prices in 2018/2019 Season

The 2018/2019 season saw high prices in Ukraine for onions, due to several interwoven reasons. Firstly, the yield in Ukraine was very low, leading to high prices domestically. However, onion yields in Europe were also low, some of the lowest in over a decade, leading to high prices all over the continent. The yield was especially low in the Netherlands, where production volume dropped by approximately 50% due to weather conditions. Wholesale prices for Ukrainian yellow onions reached as high as UAH 17.42 per kg (USD 0.73) at the end of 2018 and shot up even further to UAH 32.30 (USD 1.34) in May 2019.

Forecast for Ukrainian Onion Prices

As a result of the high prices, farmers increased their onion areas by 7% in Ukraine, leading to a higher harvest in the 2019/2020 season. This is due to beneficial weather conditions, as well as increased yield, from 17 t/ha to 17.9 t/ha. However, production in the rest of Europe has risen in a similar fashion, with production in the Netherlands increasing by 9% compared to the 5-year average. As the Netherlands is the onion price-setter, it is unlikely that Ukrainian onions can be exported for a high price. Currently, the price is UAH 8.87 per kg (USD 0.37).

Another reason for lower prices this season is the low quality of this year’s onion harvest. Due to high humidity, very few farms have onions with high solids contents, which negatively affects the prices as well. The lower quality will also negatively affect storage possibilities. As many suppliers wait to export their products until the price is high, onions are often put in storage for a long time. However, according to Green Team LLC, a Ukrainian onion supplier, there is a lack of specialists with knowledge about long-term storage, despite a high availability of storage facilities. This leads to low-quality onions being put in the domestic and international markets, further dampening the prices.

Prices for Ukrainian yellow onions are expected to show a slightly decreasing trend over the next few months to come. They are on par with prices in the region. All over eastern Europe, countries are experiencing a lower quality harvest and are keeping their quality onions in storage until prices rise again.