Onion prices surge in Ukraine as low-quality product supplies dwindle
Food prices in Ukraine continue to surge, driven primarily by a decline in the supply of low-quality products, while manufacturers, anticipating price increases, have focused on stockpiling higher-quality items, the EastFruit platform reported on Dec. 7.
The cost of onions, a staple in Ukraine, has soared to UAH 12-16/kg ($0.33-0.44/kg), marking a 20% increase in just a week.
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This spike in onion prices has led to heightened trading activity in anticipation of the upcoming New Year holidays. However, the supply of high-quality onions is currently constrained, further contributing to the overall price increase.
As of Dec. 7, 2023, Ukrainian farmers were selling onions at least 43% cheaper than the same period last year, according to EastFruit. Market observers suggest that the upward trend in prices may persist, provided the current sales pace is maintained.
The Ministry of Agrarian Policy and Food in Ukraine reported that, as of the beginning of November 2023, Ukrainian farmers had harvested 877,000 tons of onions.
Notably, the regulation of prices for some food products was extended in Ukraine during the period of martial law.
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Despite an annual inflation slowdown to 17.9%, prices for bread, semolina and barley cereals, poultry (whole carcasses and fillets), and frozen fish increased by one percent in October 2023.
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