Onions – it can be expensive end of the season

2016-01-23 18:00

Until recently, the onion market in Poland remained relatively stable. Prices were quite high (but not record), but we did not have to deal with a clear upward trend, which many market participants expected at the beginning of current season.

The basis of these expectations were information about low onion harvest in Poland. Recall that the Central Statistical Office of Poland has estimated them eventually to 540 thousand. tons. As many as 111 thousand tonnes (17 per cent) lower than the previous year.

News of the low harvest yielded the effects of two kind. Firstly, since the beginning of the season the price level was relatively high. This is shown in our chart below. But secondly, this has resulted in suspending the sale of larger batches of onions in anticipation of higher prices, and hence the accumulation of stocks.

Today, something begins to change in the prices of onions. For about a week, these prices slowly strengthen, although this is not yet a definite upward trend. Sales prices have changed during this time of 0,75 - 0,95 zł / kg to 0,90 - 1,10 zł / kg (onion calibrated, packed in bags).

But with news that come from the domestic market and abroad that it may be just an introduction to the future, much more dynamic increase in prices of onion. The first case - problems with quality stocks. Effect - lower availability of good onions and pressure to increase its prices. Secondly, the recent wave of cold weather made it froze a lot of "winter" onions. Such news flow from Polish, Ukraine and Belarus. This means that the current season will end later, we will have to wait longer for a new onions, and in the spring we will have a high demand market, but one poor in supply.