Onion is already cheap, what's next?

The supply of onions in the Polish market is high. This is mainly due to an increase in winter onion crops this season, resulting in larger yields even despite unfavorable agrometeorological conditions. Consequently, the current supply of onions is already high, reflected in the prices.

This is somewhat exacerbating the trend observed in the previous season. However, last season began with very high prices, so there was room for them to decrease. In the current season, prices were significantly lower from the start compared to last year, and after a dynamic price decrease over the last three weeks, they became very low.

Currently, wholesale prices for bagged onions range from 0.80-1.20 PLN/kg (0.19-0.28 EUR/kg). As seen in our chart, this represents not only a lower level year on year but is also much cheaper compared to the average of the previous five years (-31 percent). In fact, we have the lowest prices compared to those five previous seasons, except for July 2020. However, even in that case, the difference is not significant (+11 percent).

Peeled onions are sold for just 1.20 PLN/kg (0.28 EUR/kg), with little interest. Loose onions are priced at 0.50 PLN/kg (0.12 EUR/kg). However, there are offers to purchase peeled onions at 0.30 PLN/kg (0.07 EUR/kg).

So what lies ahead, given the current low prices? Are we inevitably facing a repeat of the poor 2020/2021 season, where onion prices in Poland remained dramatically low throughout the campaign? It is not predetermined.

Weather does not favor problem-free cultivation and high yields of both spring onions and those from seeds. It may turn out that after the end of trade in the "winter onions," the supply will decrease. In that case, prices could improve, as was the case in the 2022/2023 season.