In the wake of a protracted period of market dormancy, there has been a notable uptick in the wholesale prices for the previous year's onion crop within Ukraine. This development has been highlighted by the EastFruit's analysts. Market insiders attribute this inflationary trend to a discernible contraction in supply, which coincides with the seasonal diminution of onion reserves on domestic farms. Concurrently, there has been a modest surge in trading activities in the onion market, further fueling the upward price trajectory.
Presently, Ukrainian farmers are quoting onions at a price bracket of 12-18 UAH/kg ($0.30-0.45/kg), marking an average increase of 39% compared to the prices at the conclusion of the preceding workweek. However, they concede that a significant escalation in pricing has been challenging to implement, owing to a growing consumer discontent regarding the quality of onions available.
It is imperative to acknowledge that, as things stand, the cost of onions in Ukraine remains, on average, 64% lower than the figures recorded in the initial days of May of the preceding year. Despite this, there is a prevailing sentiment of uncertainty among producers about the feasibility of sustaining this price elevation, given the swift degradation in the quality of stored onions.
Source: east-fruit.com