Onions are rapidly falling in price in Russia, producers complain about low demand


Onions are rapidly falling in price in Russia, producers complain about low demand

08/05/2020

Farmers do not consider it expedient to sell onions at the current price, since their level today no longer guarantees coverage of production costs

Onion prices in the Russian market continue to fall, according to analysts of the EastFruit project. Farmers are seriously concerned about the current situation, because harvesting of late varieties of onions has not yet begun, and demand remains very low, even amid a rapid decline in prices.

According to the data of the daily monitoring of the project, in the last week alone, onions on the Russian market have fallen in price by an average of 22%. Today, farmers in the main production regions are ready to ship these products at a price of 7-15 rubles / kg ($ 0.09-0.20 / kg), depending on the quality and variety.

See also: The price of both greenhouse and ground tomatoes is decreasing in Russia

“It will be difficult for Russian onion producers to plan their business this season. Many, evaluating the level of production on the scale of their region, do not believe in high prices for these products in the second half of the season. At the same time, farmers do not consider it advisable to sell onions at the current price, since their level today no longer guarantees coverage of production costs, which are only increasing every year, ”comments Alexander Khorev, head of the APK-Inform project: vegetables and fruits”.

It should be noted that at the moment the price of onion in Russia is already on average 26% lower than at the beginning of August 2019. Nevertheless, many market operators are sure that such low prices are a temporary phenomenon and already closer to mid-September prices for high-quality onions may begin to grow rapidly when resellers start purchasing products for storage. At the same time, due to unfavorable weather conditions in the current season, the percentage of substandard onions that cannot be stored has significantly increased.

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