Ukrainian vegetable market

Onion Prices in Ukraine are Falling Due to Imports

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Ukrainian onion growers are forced to reduce the prices. According to them, the reason for this price trend was the increase in the supply of onions on the market, caused by increased onion imports from Poland and the Netherlands.

As a result, today onions from local farms are offered at 10-14 UAH/kg ($0.34-0.48/kg), which is on average 14% cheaper than at the end of the last work week. At the same time, most market operators note that almost 80% of onions on the domestic market of the country are imported. The reason is that the main stocks of onions are currently concentrated in the southern regions of the country, which, due to constant hostilities, cannot ship to other regions.

Meanwhile, according to the growers themselves, the quality of onions in storage continues to deteriorate rapidly, which, in turn, may lead to a further decrease in selling prices in the segment.

Despite the reduction in the price of onions, today they cost on average 2.9 times more than in the same period last year in Ukraine. Key market players explain such a price difference by a break in supply chains in most of the country, which greatly complicates the supply of both local and imported onions.

east-fruit.com

Horticulture of Ukraine 2020: Fruit and Vegetable Degradation or Temporary Difficulties?

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The EastFruit team sums up the results for the Ukrainian horticulture business in 2020, which can hardly be considered successful or favorable. Fruit and vegetable imports to Ukraine this year increased by 25% while exports decreased according to preliminary estimates.

The decrease in proceeds from walnut exports due to the decline in world prices for these products became especially noticeable. Revenue from the exports of fresh apples and blueberries also dropped sharply and were not offset by revenue growth from the exports of frozen berries even though their prices on the world market have strengthened significantly.

Imports, on the other hand, increased in almost every product category with the exception of onions. Imports of greenhouse tomatoes, greenhouse cucumbers, and potatoes grew the most. Also, the costs of importing table grapes, lemons, avocados, grapefruits, and persimmons to Ukraine increased by more than 30-40%.

In addition to the deterioration of the horticulture trade balance, one of the main challenges for the fruit and vegetable industry in Ukraine was a sharp change in the distribution channels of products. The sharp decline in sales in HoReCa due to the coronavirus pandemic and the strengthening role of supermarkets forced market participants to reconsider approaches not only to marketing but also to production.

Marketing was also felt the impact due to the lack of exhibitions, conferences, and sharp restrictions on travel opportunities reduced the effectiveness of such efforts.

The most relevant topic that determined the conjuncture of the Ukrainian and world markets is, of course, COVID-19. The coronavirus pandemic, which was initially underestimated by many, quickly became the world’s #1 problem. Ukraine turned out to be practically unprepared for it and the measures taken by the government were sometimes simply shocking and seemingly illogical and inconsistent to market participants. (more…)