At the moment, potatoes are the least demanded products on the Russian market from the whole borsch set, which forces producers to lower their prices.
According to monitoring of the EastFruit project, today Russian farms are ready to ship potatoes on average 13% cheaper than last week. So, now farmers in the main regions of production are ready to ship high-quality potatoes at 8-13 rubles / kg ($ 0,12-0,20 / kg). At the same time, manufacturers admit that more than 10 rubles / kg ($ 0,15 / kg) of the transaction are concluded quite rarely.
For comparison, last week the maximum price for quality potatoes reached 15 rubles / kg ($ 0,23 / kg). According to market participants, the situation is exacerbated by an excess of supply on the market. Many small farms have already begun to sell potatoes from storage, given the rapid deterioration in product quality.
At the same time, a significant share of the supply is substandard and small potatoes, which also puts pressure on the price of quality products. So, today substandard potatoes in the main regions of production are ready to ship at 6-7 rubles / kg ($ 0,10-0,11 / kg).
In this situation, a number of farms decided to completely abandon sales in anticipation of an improvement in the market. It is worth noting that at the moment, prices for quality potatoes in Russia are on average 13% cheaper than in the first half of November 2017.
Recall that a year ago, Russian farmers shipped these products at 8-15 rubles / kg ($ 0,12-0,23 / kg), depending on the region of shipment, grade and quality. At the same time, market participants are quite pessimistic. According to them, given the rather large free volumes on the market, there is no reason to count on price increases in the near future.
Source: I inform.co