According to analysts EastfruitSince the end of October, the prices for potatoes in Ukraine are the lowest in Eastern Europe. The average wholesale price dropped 17% over the week.
It should be noted that Ukrainian potatoes are now only 15-20% cheaper than a year earlier, however, against the background of rising prices in other countries of the region, this is enough to take the position of the price leader.
The decline in the cost of potatoes further increased the price gap between the markets of Belarus and Ukraine, which served as a significant stimulus for the growth of export shipments of Ukrainian potatoes to Belarus. It is possible that some of the Ukrainian potatoes this season also enter the Russian market through the mediation of traders from Belarus.
At the moment, potatoes in Ukraine can be bought in bulk 2,5 times cheaper than in the Russian Federation. Since the difference in the purchase price of one batch exceeds $ 5, such a re-export business becomes very attractive. In addition to Belarus and the Russian Federation, Ukraine is currently exporting potatoes to Serbia and Georgia.
Low prices for potatoes persist in Poland as well (although they are almost twice higher than a year earlier, against the backdrop of a decline in product yields). Potato growers hope that the recovery in demand from the HoReCa segment will lead to higher prices in the future. Nevertheless, at the moment it is profitable for Belarus to buy potatoes in Poland - for re-export to the Russian Federation and for its own needs.
The main reason for the decline in the price of potatoes in Ukraine is the desire of farmers to quickly sell that part of the product that is not subject to long-term storage. It is possible that after these volumes are sold out, prices will gradually recover.