Information for fruit and vegetables business in CIS
Potato prices go down in Western Ukraine because of price growth for fuel and lubricants
The specialists of Lviv AMP (Agricultural Marketing Project) office report that potato prices in the region continue to decrease under influence of large supply and relatively low demand. It is reported that USD $ 0.08/kg was highest price on which bulk quantity of potato was sold, and the lowest one was less than USD 0.05/kg. Meanwhile large supplies from neighboring Volyn oblast are also causing large pressure on Lviv oblast market. Market players consider it hardly possible to avoid further decrease of average potato market price.
To the opinion of AMP analysts, one of the reasons for potato price decrease in western Ukraine (except production growth reason) is getting the prices for fuel and lubricants up. It made the travels from eastern oblasts to purchase potato and cabbage unprofitable. By the way, it may be the possible reason for cabbage and potato prices to remain relatively high in the central regions of the country. One more reason for potato demand decrease is the growth of income of Ukrainian population (recently by means of subsidies to pensions), so people prefer to eat meat instead of potato; there is also price decrease for grains, macaroni and bakery products which traditionally compete potato on market.
Let us remind that the largest potato producers in Ukraine are Chernygiv, Lviv and Vinnitsa oblasts; besides large overproduction of this commodity is observed on Volyn oblast market.