Onion prices in Ukraine are rising again: shortage of stocks and increased trade are affecting the market

Ukraine has once again recorded an increase in onion prices, which replaced the short-term decrease in prices last week. The reason for this dynamics was the seasonal reduction in stocks in farms, as well as increased trading activity in the market.

This was reported by analysts of the EastFruit project, who regularly monitor the situation in the agricultural sector. According to their observations, the current situation is typical for this period, when last year's stocks are running out, and the new harvest has not yet gone on sale in significant volumes.

As of today, farmers are selling onions at prices from 18 to 27 hryvnias per kilogram, which is equivalent to \.43–0.65. Thus, the average price has increased by 13% compared to the end of the last working week. This indicates a noticeable tension in the market due to a reduction in supply.

Another important factor is the fact that onion prices are already 26% higher than in early May 2024. However, agricultural producers cannot confidently predict further price increases. The reason is the deterioration in the quality of residual products in storage, which limits the potential for their price increase.

The reduction in stocks, combined with increased purchases by wholesale companies, creates additional pressure on the market. At the same time, demand remains quite stable, which does not allow prices to fall even against the background of an imperfect product.

Thus, the situation with onions is indicative of broader storage problems and seasonality in the Ukrainian vegetable market. Prices may remain high in the coming weeks, at least until the new harvest arrives in larger volumes.