Onion prices rise in Argentina and Mexico amid supply constraints

Onion prices have seen significant increases in Argentina and Mexico due to a combination of reduced planting areas, adverse weather conditions, and shifting market demands.

In Argentina, prices reached as high as $4,000 per kilo in some areas. Néstor Lombardi, president of the Cámara Argentina de la Actividad Frutihortícola (CAAF), attributed the spike to low prices during the previous harvest cycle which discouraged planting, alongside climate issues like excessive rainfall in Buenos Aires province. However, prices are expected to stabilize as production from Santiago del Estero enters the market.

In Mexico, onion prices in supermarkets have reached up to 74 pesos per kilo, while traditional markets offer lower rates between 34 and 42 pesos. According to the Secretaría de Agricultura y Desarrollo Rural (Sader) and the Grupo Consultor de Mercados Agrícolas (GCMA), the rise is driven by reduced sowing in states like Chihuahua, Zacatecas, and Guanajuato following a previous low-price cycle. Other contributing factors include atypical rainfall, water stress, and increased demand during patriotic holiday seasons. Additionally, high intermediary margins and logistics costs, including theft during transport, have impacted final consumer prices.