Information for fruit and vegetables business in CIS
Prices on onion and cabbage are considerably lower in Poland than in Ukraine
Poland is one of the largest suppliers and exporters of fruits and vegetables in Europe; the experts have to keep an eye on the prices on fruits and vegetables on this market as they influence much the prices on these commodities in the whole Europe.
For a number of years Poland has supplied the significant volumes of fresh fruits and vegetables on Ukrainian market too, thanks to a very low price and good quality of the commodities. However, the data of the official statistics confirmed such supplies very rarely, and it proved that a large share of vegetables and fruits imported from Poland was contraband.
This year the cessation of the illegal onion supplies from Poland led to the significant price growth on the inner market of Ukraine, despite of the fact that the onion production in 2004 was a record of the recent years. This week, for example, wholesale prices on onion were 2.4 times lower in Poland than in Ukraine, about USD $ 0.1/kg. Still, as market players report, this commodity may be purchased from the farmers much cheaper.
White cabbage is the other commodity on which there was a serious disproportion in prices in Poland and Ukraine. A kilo of cabbage costs now about USD $ 0.17-0.18; the wholesale price on cabbage in Ukraine is 2.6 times higher. Polish farmers can sell white cabbage on USD $ 0.12-0.13/kg.
Despite of such significant price variations, the supplies of these commodities to Ukraine are hampered by high import taxes. If the suggested amendments to the Custom Tariff are approved, the supplies of these commodities to Ukraine may be increased rapidly; for example, on the border after the payment of all custom taxes and dues cabbage will cost about USD $ 0.19/kg.
At the same time, to the opinion of the specialists of Agricultural Marketing Project, the supplies of cabbage from Poland to Ukraine will hardly be significant as the season of the effective cabbage sales of past year harvest is coming to its end. In the end of April the first supplies of early white cabbage will appear on market. The onion supplies are possible this season, though everything depends on whether the amendments to the Custom Tariff be approved or not.