Polish onion market is still in trouble

2021-03-04 10:38

In January and February, when the cold winter weather arrived, prices for a number of domestic vegetables rose due to the ongoing decline in supply. Onions reacted relatively least at that time, but there was some upward adjustment in the selling prices at the large wholesalers in February. Not much - on average these prices increased by less than 6 per cent.

It did not bring any essential improvement on the Polish onion market. Wholesale trade of this vegetable was still struggling with the problem of weak demand. A large part of this is due to the fact that catering, including closed ones (schools, hotels), is still closed.

Then it got warmer and the pressure of low demand increased. So much so that onion prices at the big wholesaler fell by less than 17 per cent. Now onions packed in 15-kg sacks, calibrated, are usually sold at 0.60-0.90 zlotys per kilo. As you can see in the chart above, the current average price level is clearly below five out of ten levels from previous seasons.

And what are the chances for improvement in Polish onion prices? Large increases are unlikely, but retail demand will certainly increase before Easter. And it will have to be covered mainly from domestic stocks, because this year we are not threatened by a flood of Dutch onions. So there is a chance for limited price increases before Easter. These chances will certainly increase if the forecasts for the return of snowy and frosty weather are confirmed. An end to the blockade of the HoReCa channel would certainly be a powerful stimulus, but there is little chance of that before May-June.

Add comment

Commentary option available only for users with a subscription purchased