W5 Onion Update: Ukrainian Onion Prices Halved Amidst War, Malaysia Aims to Reduce Red Onion Imports By 30%

Central Asian Onion Influx in Polish Markets

There has been a notable influx of onions from Uzbekistan, Tajikistan, Kazakhstan, and potentially other Central Asian nations into Polish wholesale markets recently, often labeled as originating from Uzbekistan. However, suspicions arise that some of these products may actually be of Russian origin due to their relatively low price compared to the record highs in Poland. Despite the increased imports, Polish onion prices continue to rise. Though sporadically reported in Poland, Ukrainian onions are primarily exported to Romania, where prices are higher. The anticipated rise in onion prices in the European Union (EU) may help Central Asian countries avoid a collapse in wholesale prices for the 2023 harvest. It is crucial for Uzbekistan exporters that onion prices in the EU increase to offset transport costs and address declining onion quality in storage facilities.

Uzbekistan Poised to Join Top Five Global Onion Exporters in 2023/24 Season

By the end of the 2023/24 season, Uzbekistan is poised to emerge as one of the top five global exporters of fresh onions, a notable achievement considering its consistent presence among the top ten exporters in previous seasons. This season saw various countries, including Egypt and Türkiye, implementing bans on onion exports, increasing opportunities for Uzbekistan. Despite recording record-breaking onion production, Uzbekistan faced challenges with lower prices, prompting resellers to seek export opportunities actively. Consequently, wholesale markets in Poland experienced a surge in onions from Uzbekistan, with expectations of continued high export volumes in the coming months.

Ukrainian Onion Prices Halved in W5 Amidst War

Significant price fluctuations were observed in the Ukrainian vegetable market, particularly affecting borscht ingredients during the full-scale war period. The Lviv wholesale market reported a 20% year-on-year (YoY) price increase for most vegetables in the borscht set, excluding onions and carrots. Surprisingly, onion prices, which skyrocketed last year, have decreased by more than half, now priced at USD 0.31 to 0.33 per kilogram (kg) wholesale and USD 0.37 to 0.53/kg in supermarkets. Experts anticipate a slight uptick in vegetable prices by the conclusion of winter 2024, attributing the rise primarily to onions, which are projected to experience the most significant increase driven by heightened demand coupled with constrained supply conditions.

South Korea Anticipates Growth in Onion and Green Onion Production for 2024

In South Korea, onion and green onion production is anticipated to increase in 2024 due to an expansion in cultivation areas compared to last year. The onion cultivation area in 2024 is forecasted to rise by 4.5% YoY, with production expected to increase by 11.4% YoY. The outlook for onion cultivation is optimistic, with both early and mid-late maturing species expected to see growth. This strategic realignment reflects a proactive response to market trends, aiming to maximize profitability and sustainability in South Korea's agricultural sector.

Malaysia Targets Self-Sufficiency in Onions with Mardi's Varieties

The Agriculture and Food Securities Minister announced that Malaysia is making progress in reducing its reliance on imported red onions, thanks to the successful development of three varieties of Mardi red onions by the Malaysian Agricultural Research and Development Institute (Mardi) last year. With the aim of large-scale cultivation, the minister emphasized the importance of collective efforts in achieving success in 2024. As part of the ministry's focus on strengthening the onion industry, initiatives include targeting an annual farming area of ​​1.44 thousand hectares (ha) to reduce onion imports by 30%.