February 28 2011, 14:27 Fruit-Inform

Situation with seed potatoes critical in Ukraine

According to experts of Fruit-Inform Project, high prices for seed potatoes in Ukraine plant a delayed-action bomb under all potato business of the country. With such prices for seeds, prime cost of potatoes will increase rather significantly in the new season; however, potato prices may greatly decrease. This was said by Andriy Yarmak, Head of Fruit-Inform Project, at the third international conference “Potato and Vegetables of Ukraine-2011”.

Experts are especially worried of the government of Ukraine trying to decrease fresh potato prices in the market by administrative means and simultaneously imposing high indicative prices on seed potato imports. Notwithstanding indicative prices being prohibited by the agreement with WTO, Ukraine's customs de facto use them calling “benchmark prices”. Indicative prices imposed by customs are significantly higher than real ones. This leads to sharp growth of imported seed potato prices. At the same time, there is a huge shortage of both imported and domestic seed material currently perceptible in the Ukrainian market.

If such problems are not solved in the nearest time, Ukraine's potato producers will most probably suffer solid losses from the government policy already in the new season.