February 16 2011, 11:01 Fruit-Inform

Ukraine's potato and vegetable producers' economic efficiency dynamics

According to Fruit-Inform's analysts, difficult weather conditions of 2010 led to growth of potato and borsch vegetable (onion, cabbage, beet, carrot) prices by 17% in comparison with last year. The main contribution to growth of these traditional vegetable prices was made by potatoes and cabbages having increased in price by 25% and 22% respectively over a year.

If the situation with cabbages can be explained by objective reasons, then growth of potato prices was predominantly the result of unjustified agiotage in mass-media that led to growth of potato imports already during its harvesting period and importing companies' losses as potato prices considerably decreased after that.

At the same time, producers did not object to such an agiotage as it enabled them to gain rather high profits from potato growing, which may be reinvested in new equipment, machinery, and growing technologies. Averagely, according to our estimates, taking into account losses from unfavorable weather conditions, potato and cabbage producers will be able to increase their business profitability by 15%. Taking into consideration its high economic efficiency in the previous season, this may create excellent prospects for development of their business.

Slight profits' growth was also registered for onion producers who currently gain from grown produce averagely 9% more than last year. However, taking into account losses from unfavorable weather conditions and costs' increase, profitability of onion growing may even somewhat decrease in comparison with last season.

Profitability of carrot and beet growing will definitely decrease as prices for these vegetables are 20-30% lower than last year. However, economic efficiency is rather high to plan development of production.

More detailed information about potato and vegetable production profitability change prospects for the new season will be presented during the third international conference “Potato and Vegetables of Ukraine-2011”. Besides this, all participants of the event will receive additional information about novelties in growing, storage and post-harvest handling technologies. Also, you have a chance to attend the specialized training seminar by Peter Schumann, famous expert from Germany, “Production of high-quality potatoes is the business of professionals” that will take place on the second day of the conference.

The conference is to take place at Shuvar, the largest wholesale market for fresh fruit and vegetable produce, Lvov, Ukraine, February 24-25, 2011. Applications for participation are accepted on-line through this link.