Despite the fact that prices for potatoes in Ukraine are declining, their decline has not yet been sufficient to stop the flow of huge volumes of imports of Russian tubers into the country.
EastFruit analysts report that wholesale prices for potatoes in Ukraine over the past six weeks have decreased by 27-30%, and now you can buy wholesale products even at 7 UAH / kg (about 30 US cents per kg). And although Ukrainian potato producers are trying to keep prices down, according to traders, negotiations with them have become much easier.
At the same time, potato growers in Russia and Belarus still willingly sell their potatoes on average two to two and a half times cheaper than Ukrainian ones. “With such a difference in price, traders will continue to import potatoes from Russia and Belarus, because it is profitable,” says Alexander Khorev, head of the APK-Inform: Vegetables and Fruits project.
The Ukrainian Fruit and Vegetable Association (UPOA) estimates the volume of potato imports to Ukraine at about 200 thousand tons at the moment since the beginning of the season. “We noted a slowdown in imports in November due to lower margins and too large volumes of low quality imported potatoes, but trade remains very active now,” says Katerina Zvereva, UPOA Development Director.
See also: Potatoes have risen in price in Belarus and Tajikistan, prices for carrots have decreased in Poland and the Russian Federation. Market Overview Week 48 of 2019
“The share of imported potatoes in the retail trade of this product in October-November, according to my estimates, reached almost 50%. Most of our potato growers only have about 4 months left to sell their stocks, while traders were laying potatoes for the purpose of resale at a higher price, and even pledging imported products! Therefore, I would not rule out the likelihood of a further decrease in the wholesale price for potatoes in December, and if this does not happen, then a collapse in prices in March-April. Obviously, until Ukrainian farmers understand what is happening, potato growers from Russia and Belarus will earn their money on their own market, ”says Andriy Yarmak, economist at the investment department of the UN Food and Agriculture Organization (FAO).
The fundamental forecast of potato prices in the second half of the 2019/20 season will be announced by Alekschandr Khorev at the conference "Fruits and Vegetables of Ukraine 2019. Export Breakthrough", and Andriy Yarmak will touch upon the reasons why the potato and vegetable industries of Ukraine are so a deplorable state. He will also present his vision of ways out of this situation.
A record number of producers of potatoes, vegetables, fruits, berries and nuts will take part in the conference this year. Registration for participation is possible at this link.
Source: https://east-fruit.com/