What's Up With The Price Of Onions?

http://www.bubblear.com/as-onion-prices-skyrocket-govt-recommends-not-buying-it/

onion crisis explained
 
Brazil is seeing a serious drought as well as Central-America; agriculture north of BA will probably be facing the same problems in the coming months too. I would imagine this is not the only crop that will go up in price; as always I'm sure the tomato prices will do it's expected yearly fluctuation.
 
Went to the verduleria yesterday and saw this. $45/kg

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Santiago del Estero's onions didn't seem to bring the price down :(
 
I wonder what might be the incentive of a landowner to maintain an onion patch in Argentina

What's the price shallots? or are they only sold in greenbacks?
 
It's not necessarily the farmers who are the price problems. I looked into opening a verduleria a year or so ago and found that the farmers sell for very low prices, the guys who buy from the farmers bring the produce to places like Mercado Central to sell, and then the verduleros go to Mercado Central and buy from them (Mercado Central delivers to verdulerias). Quite a bit of markup on each leg.

On top of that, as an aside, I found out that the verduleros (at least some of them) make more money by selling to restaurants in the neighborhood - they markup the price significantly higher for restaurants than they do for individuals they are selling to our of their verdulerias.

The verduleros that make the most profit have their own trucks and have made deals with farmers directly. But instead of charging a lower price and getting a lot of business (competition = evil!), they all pretty much have the same retail prices, at least within neighborhoods...

As far as incentive for the farmers - that's a good question!
 
It's not necessarily the farmers who are the price problems. I looked into opening a verduleria a year or so ago and found that the farmers sell for very low prices, the guys who buy from the farmers bring the produce to places like Mercado Central to sell, and then the verduleros go to Mercado Central and buy from them (Mercado Central delivers to verdulerias). Quite a bit of markup on each leg.

On top of that, as an aside, I found out that the verduleros (at least some of them) make more money by selling to restaurants in the neighborhood - they markup the price significantly higher for restaurants than they do for individuals they are selling to our of their verdulerias.

The verduleros that make the most profit have their own trucks and have made deals with farmers directly. But instead of charging a lower price and getting a lot of business (competition = evil!), they all pretty much have the same retail prices, at least within neighborhoods...

As far as incentive for the farmers - that's a good question!

The Verduleros are a bunch of thieves, they buy low quality produce , at distressed prices and sell them at top dollar. Look at the carrots all dirty and irregular . Verduleros triple the prices from the Mercado Central . for instance the potatoes you can Buy 3 kilos for 10 pesos, they sell 10 pesos a kilo...!
 
I wouldn't blame just verduleros, since big supermarkets have often even higher prices. There was a protest of farmers not long ago and they were presenting prices they get paid for things. The difference could be up to 2000%! The problem is, that they are barely covering expenses and there were news about crops that no one will pick up, because it's not worth.

I don't know if there is also some mafia managing all together or is this due serious lack of enterprising from farmers and other parties. For sure also truckers take big part in it, but is still very weird.

What came as even bigger surprise to me are prices in smaller rural places in provincia, where quality is even worse and prices higher. They told me it's because mercado central is more far.. In the middle of farms!
 
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