EastFruit analysts predict that Uzbekistan could secure a spot among the top five largest onion exporters globally by the end of the 2023/24 season. This comes as a result of a remarkable surge in onion production and a series of export bans imposed by major onion-exporting countries.
Traditionally ranking within the top ten onion exporters, Uzbekistan has seen a significant opportunity arise in the current season due to export bans from countries like Egypt and a temporary ban from Türkiye, which was later reversed. These restrictions opened up avenues for Uzbekistan to capitalize on the international onion market.
The 2023/24 season in Uzbekistan has witnessed record-breaking onion production, resulting in a substantial drop in prices. In January 2024, onion prices were reported to be 40% lower than during the harvest, causing challenges for local traders who had purchased onions with the intent to resell at a profit.
To mitigate losses, traders are actively seeking buyers beyond traditional markets, leading to an overflow of Uzbek onions in wholesale markets in Poland since January 2024. The first shipments of the new onion harvest from southern regions of Uzbekistan are expected to commence in late March 2024, potentially adding to the already abundant supply.
EastFruit analysts project that onion exports from Uzbekistan for the current season could surpass 300,000 tons, setting a new export record. If achieved, this would position Uzbekistan ahead of competitors such as Poland, Afghanistan, Spain, Egypt, and even the United States, making it one of the top five largest global onion exporters.
Record onion exports to Europe have contributed to a 28% surge in wholesale prices in Uzbekistan since mid-January 2024. Despite the recent increase, prices remain significantly lower than those recorded in 2023 and below the levels observed during the harvest. Local wholesalers are grappling with the challenge of turning a profit and engaging in tough negotiations with buyers to maximize their earnings.
Market participants attribute the spike in onion prices to the substantial rise in export volumes to European Union countries, particularly the influx of Uzbek onions into wholesale markets in Poland. The increased export activity has, however, played a role in stabilizing domestic prices in Uzbekistan, offering a mixed scenario for local traders and farmers alike.
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