EastFruit analysts note that prices for commercial potatoes of the new crop in Russia continued to decline this week. Every day the number of potato offers on the market is increasing noticeably.
At the same time, the most typical price at which the producer is ready to sell potatoes varies from 5 to 7 rubles / kg (8-11 US cents), and the average selling price of potatoes by farmers as of Tuesday, September 17, 2019 is about 6,5 rubles / kg (10 US cents).
Thus, the average for potatoes in Russia decreased by 20-25% in just four days, and, according to market participants, the limit of price reduction has not yet been exhausted. Prices for Russian potatoes are now almost two times lower than a year earlier.
“In mid-September 2018, Russian farmers sold potatoes on average at 10-12 rubles / kg, which corresponded to 17 US cents per kg. The almost two-fold decrease in prices in 2019 compared to last year is explained by the growth in the area under potatoes in professional farms, ”explains Andriy Yarmak, economist at the Investment Department of the Food and Agriculture Organization of the United Nations (FAO).
“The farmers decided to increase their potato harvest against the background of favorable prices for it last season. In addition, the absence of special problems with the weather during the growing season and the increase in the technological level of potato cultivation ensured a high average yield, which led to pressure on prices during the period of active harvesting of products, ”the expert says.
Against the background of a decline in real incomes of the Russian population for several consecutive years, the consumption of such inexpensive products as potatoes was kept at a high level, while the consumption of more expensive vegetables and fruits, on the contrary, decreased.
It is interesting to note that Russia increased potato imports in the 2018/19 season by 10% compared to the previous season, importing 576 thousand tons of products. The main supplier of potatoes to Russia was Egypt, which accounted for more than 63% of all imports. Russian importers also bought large volumes of potatoes from Azerbaijan (although this, according to traders, was partly potatoes grown in Iran), China, Belarus, Pakistan and Israel.
The main factor that is currently supporting potato prices in Russia is its supply to the Ukrainian market. Producers receive proposals for the purchase of potatoes with delivery to the Republic of Belarus with a view to the subsequent re-export of this potato to Ukraine.
Potato prices in Belarus are currently an order of magnitude higher than in Russia. But the prices for potatoes in Ukraine, despite the growth in imports from Belarus and Russia, continue to grow, and already several times exceed the level of prices for potatoes in Russia.
A source: https://east-fruit.com/