A crash in farm-gate onion prices six months ago has left Ethiopian farmers without capital, causing current shortages and higher costs for urban consumers in Addis Ababa.
Six months ago, farm-gate onion prices crashed to 16 Br a kilogram. This left farmers in debt and forced them to leave unharvested crops in the field.
The prior price collapse stripped farmers of the capital needed to buy seed, labour, and fuel. As a result, urban consumers in Addis Ababa now face shortages and higher costs.
Growers are abandoning high-input vegetables in favour of lower-risk crops like maize and wheat. This shift has severely limited the volume of vegetables entering the supply chain.