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Inside Onions

Does Egypt cause a price correction for Polish onions?

11 March 2019 - 4 comments

Due to the import ban that Saudi Arabia has imposed on Egyptian onions, the country is forced to look for alternative destinations. Is Poland the victim of this?

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Saudi Arabia imposed an import ban on Egyptian onions on January 18, which is a bitter pill for exporters in the country. Saudi Arabia has long been Egypt's main customer; more than 200.000 tons of onions are sent to the country every year. The reason for the ban is that the onions do not meet the requirements regarding residues in crop protection products.

Ukraine
Saudi Arabia must therefore look for alternative destinations and in that search it has ended up with Ukraine. In Ukraine, the rules regarding residues in crop protection products are less strict than in Saudi Arabia. The prices of onions from Ukraine are very competitive.  

However, Ukraine usually exports a lot of onions to Poland. It is not known whether this also includes Egyptian onions. In Poland, processors and traders expect that prices may be subject to significant corrections (due to the large supply from Ukraine).

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