October 12 2005, 15:01 Agrarian Marketing Project

Ukrainians will lose $ 0.8 billion on potato

At the present moment everybody hesitates to forecast price on potato, but all the producers questioned by the Agricultural Marketing Project (AMP) are united to think that the price will grow. We have informed several times already that this year potato harvest is expected to be 20% less than in 2004, according to AMP prognoses; prices can jump up dramatically. The majority of small producers have already sold harvested potato. An average sales price fluctuated within USD 0.15-0.19/kg this year - past year potato cost significantly less, USD 0.07-0.11/kg. Poor potato harvest is caused by different reasons; in particular, summer weather encouraged needless tubers to form, significant acreage was damaged by diseases or suffered because of moisture lack. To this moment large farms are reporting about difficulties in potato harvesting. Soil is dry without rain, so that potato harvesting machinery can not be effectively used. A large part of harvest is damaged; too much dry ground appears on sorting lines, taken by machine for potato tubers.

For now you can sign the purchase contract on potato worth not less than USD 0.23/kg. Further price increase is quite possible; retail prices are now on the level of USD 0.29/kg and may grow up to USD 0.36-0.42/kg. Past year prices can be exceeded more than twice.

In Ukraine, according to AMP assessments, about 10 mln. tons of potato will be "eaten" this year, so that the additional expenses for potato purchase born by the population may constitute up to USD 0.8 billion, to the opinion of AMP specialists