Information for fruit and vegetables business in CIS
The Agricultural Marketing Project decrease the forecast of cabbage production in 2005
According to the assessments of the agricultural Marketing Project (AMP), the production of white cabbage will be 5% lower this year than in 2004; as the forecast of the possible acreage for this crop deteriorated. The Project forecasted earlier that cabbage production will not change comparing to 2004 or even increase 1-2%.
Despite of the decrease of the prognosed rates of cabbage production, no deficit on this commodity is expected. The supply of cabbage on market will be 15-18% higher approximately comparing to the recent 6 years, to the opinion of AMP analysts. It is interesting to mention that the Steppe regions of Ukraine continue to increase the cabbage production, mainly early and medium varieties - the prices on them are traditionally higher than the prices on late cabbage varieties. Plus, the additional advantage of early and medium cabbage production is that it is not necessary to store it.
At the present moment cabbage of late varieties stated to be supplied on Ukrainian market, so the average wholesale prices are going down. Nevertheless, the wholesale price on cabbage exceeds twice and more the past year level. In 2004 the farmers sold white cabbage on USD 0.06-0.08/kg, and this year - USD 0.16-0.22/kg. It is fair to say that late varieties of cabbage ripened this year somewhat later in many regions.
Speaking about the price perspectives, many producers are expecting the cabbage price to decrease a little in September-October. In November the prices will be stabilized traditionally, and then the price growth may occur. Many farmers seem to store cabbage hoping to have a higher price in the end of winter - beginning of spring 2006.