Information for fruit and vegetables business in CIS
What will be prices like for carrot this year?
Situation in the carrot market in recent time remains sufficiently stable. Carrot yield harvested in 2005, is regarded by experts as a good one. According to Agricultural Marketing Project (AMP) estimate, the acreage under carrot this year is by 6% larger than last year, although the yield is going to be somewhat lower which will decrease overall carrot production this year by 9%. At the same time already harvested carrot is of good quality and is good for long storing.
Carrot producers report good demand for this commodity this year. Traditionally, more carrot was purchased by eastern regions of Ukraine - Donetsk, Dniptopetrovsk, Lugansk Oblasts. In these regions shortage of carrot was most outstanding and consequently - higher prices: in this season the prices were higher than in producing regions by 50-100%. Shortage of carrot was compensated by stock harvested in Volyn, Rivne, Cherkassy, Chernigiv and other Oblasts.
Players in the market as well as end buyers remember well the crises which occurred in late spring and early summer of this year. It is remarkable that prices for carrot were record highest - wholesale price reached 7 UAH/kg, and even with such a price the proposal was not great. Experts attributed the existing situation to poor storing quality of last year carrot as well as spontaneity of the market - many companies which could have proposed carrot at his time had already sole their stock, never expecting the prices would be so high.
At this moment wholesale prices for carrot range from 0.7 to 1.2 UAH/kg on conditions of buyer's dispatching the commodity in regions where carrot production surpass own needs and 1.5 to 2.0 UAH/kg from companies in eastern regions. The prices vary a lot depending on the quality of the product.
According to market operators this year more carrot will be stored as compared to the previous year. This is also witnessed by a larger demand for quality carrot which is more suitable for longer storing. If the carrot, as it is supposed, will store well there will be no leaps and bounds in prices which were observed this summer. Last year practice made many think if it was reasonable to sell carrot from the warehouse before good time comes. At the same time the reverse situation is also possible when excessive carrot stock will be stored which can bring about a collapse of prices before the next season which means the market operators have to permanently monitor the situation in the market.