Transformation of the onion market in Ukraine: new regions and export opportunities
The Netherlands is an important partner for Ukrainian onion sector, not only as a supplier of technologoes, but also as leading trading partners.
Origginal articl: Трансформація ринку цибулі в Україні: нові регіони та експортні можливості — AgroPortal.ua
14.04.2025
In the conditions of a full-scale war and rapid global changes, the Ukrainian agricultural sector has demonstrated an incredible ability to adapt. An interesting phenomenon in this regard has been the onion market, a product that has traditionally not attracted the attention of analysts among export crops. However, today it is this "everyday" vegetable that demonstrates significant potential for producers.
The Ukrainian onion market has undergone a radical transformation: the geography of cultivation has changed, new producers have appeared, and technological adaptation to changed climatic conditions has taken place. At the same time, Ukrainian onions have retained a significant price advantage compared to European ones, which creates a unique window of opportunity for exports. An analysis of the current situation shows that we are witnessing the formation of a new promising direction for Ukrainian agricultural exports.
Changes in geography and problems in onion cultivation
Before the the full-scale war, about 60% of all onions in Ukraine were grown in the South - in Zaporizhia, Kherson, Mykolaiv and partly Odessa regions. Farmers in these regions had been working out technologies for years and received stable yields at the level of 60-80 t/ha. Due to the occupation of part of the Southern regions, a large-scale relocation of onion cultivation to the Central and Western regions of Ukraine took place. About 30-35% of the crop is now cultivated in the central part of the country. Interestingly, until 2022, the Western regions of Ukraine almost did not grow onions. Local farmers focused on more traditional cabbage, carrots, and beets. Among farmers, the prevailing opinion was that in the conditions and on the soils of the western regions, onions “do not bear much fruit”, especially when grown without irrigation.
The situation has changed dramatically after the start of a full-scale war. Now farmers in Western Ukraine have also begun to grow and restore their areas under onions. However, local farms do not always have sufficient experience in cultivating this vegetable. Therefore, getting a decent harvest turned out to be a difficult task. Those who took up the matter initially achieved a maximum yield of 20 t/ha, which is 3-4 times less than in the South of the country. Mainly due to non-compliance with the technological processes of cultivation. Regarding the total areas of onion cultivation: over the past year they have remained approximately at the level of 2023, but the total volume in 2024 turned out to be 20-25% less. That is, the areas have been preserved, but there is a significant decrease in yield. Experts also note a fairly high percentage of small onions. The main reason for the decrease in the gross harvest is the failure to take into account sharp climatic changes during cultivation and the inability to provide the crop with sufficient moisture in a timely manner. But the problem is not only in the water deficit. Diseases and pests attack onions even more strongly due to weather conditions, so it is necessary to carefully choose means of protection for the crop.
So what is the situation we have now? New regions, lack of expertise and technological knowledge, problems with irrigation and plant protection. Add to this logistics, which has become significantly more expensive, and the specifics of storing onions in temporary storage. These factors has led to a decrease in the total volume of onion production.
There is demand outside Ukraine
Ukrainian onions are already known on the international market. There is stable demand, which means there is room for production to grow. In 2021, imported onions accounted for only 2% of the European market, but in 2022–2023 its share increased to 13%. The main sales markets remain Romania, Bulgaria, Austria and Montenegro. Supplies to Moldova have recently resumed. New opportunities have also appeared in the UK. This opens the way for expanding exports outside the EU. Ukrainian onions traditionally have a significant price advantage. Currently, wholesale prices are at around 31 US cents per kilogram. This is one of the lowest rates in history. In neighboring Poland, prices are on average 40% higher. The difference in prices between Ukraine and the Netherlands - the largest onion exporter in the EU - is almost twice as large. This difference creates good conditions for increasing exports from Ukraine. Domestic onion production in recent years has been about 1 million tons per year. However, yields in large agricultural enterprises are almost twice as high as those of small farms, which is explained by additional or increased investments in high-quality seeds and protection products.
Volodymyr Voevodin, , BASF LLC, Ukraine.
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