August 8 2011, 11:05 Fruit-Inform

Further slump of fruit and vegetable prices in Ukraine

Fruit-Inform Project's fruit and vegetable index shows that fruit and vegetable prices decreased by 15.7% in Ukraine last week that was one of the sharpest price reduction rate in 2011. In such a way, fruit and vegetable prices have been falling in Ukraine for the 12th week in a row.

The most significant contribution to the price decrease was made by potatoes. The share of them is one of the largest in total fruit and vegetable consumption in Ukraine. Potato prices fell by 16.7% last week. Farmers had to reduce prices due to supply prevailing over demand. Many of them preferred not to harvest potatoes hoping for higher prices in future. However, with harvesting of late potatoes approaching, such hopes are most likely to be frustrated.

For the first time in this year, fruit prices significantly decreased: by 12.4%. The main reason for the price reduction lied in large quantities of early apples and early table grapes having appeared in the market and further price decrease for melons and watermelons. Banana prices also were reduced, as this product was not in demand in the Ukrainian market last week.

“August is one of the most important months for domestic fruits, as consumption of them usually increase, and prices fell”, Tetiana Getman, Head of Fruit-Inform Project says. “In the nearest time, prices for melons, watermelons and table grapes will continue to decrease, and consumption of them will keep on growing”, Mrs. Getman goes on.

Borsch vegetables (onions, white cabbages, red beets and carrots) fell in price by 14.7%, and farmers started worrying of prices not covering production costs. Tomatoes became cheaper too: by 20%.

More detailed information about developments in fruit and vegetable markets of Russia and Ukraine is available for subscribers of Fruit-Inform Weekly. Information about price and export prospects in the Russian market for fruits and vegetables will be presented during the Fourth International Conference “Fruit & Vegetable Business of Russia – 2011”. The event will take place in conjunction with World Food Moscow, September 14, 2011. Registration of the conference participants is currently in active progress.