Information for fruit and vegetables business in CIS
Cold Weather Changes Produce Trade Plans
In line with cold weather, fruit and vegetable producers felt demand decrease from the side of small wholesalers and intermediaries. This is due to difficulties related to transportation on winter roads and by lack of thermo trucks. Also, representatives in the regions were informed that in some city markets vegetables were damaged by frost. The other reason for lower demand on vegetables is the wholesalers' awareness of the usual decrease of produce trade in city markets. This time of year the consumers in large cities prefer to buy produce in convenient and warm supermarkets.
The demand of vegetables from the side of wholesalers drops down at the same time farmers increase vegetable supply, as many of them do not have appropriate storages. However, prices in the market have not fallen as demand still exceeds supply. Some producers have even slightly increased prices.
Further price increases on fruits and vegetables can easily be forecasted by two interesting facts. Wholesale and retail traders have accumulated greater than usual produce volumes in new, modern storage facilities. Either, legal or illegal, imports may grow due to the larger price margin on some fruits and vegetables compared to neighboring countries.