December 12 2005, 12:26 Agrarian Marketing Project

Potato prices Have Been Remaining Stable for the Past Month in Kyiv

Potato prices increased rapidly in October and the first half of November in Kyiv markets, but since have stabilized, so that in the past month there has been little change. From September to mid November of this year average potato prices increased 110% from $ 0.18/kg to $ 0.37/kg at the Farmer wholesale market in Kyiv. This price growth was the result of a poor potato harvest in Ukraine, which significantly decreased supply. Plant disease, drought during the ripening period, and a significant decrease in acreage under potatoes in private plots resulted in low gross potato production. According to estimates from the Agricultural Marketing Project, gross potato production decreased by more than 20% this year in Ukraine.

Although the price increase was predicted, the majority of market players had not expected it to be so dramatic. Mid November wholesale prices increased to $ 0.33-0.37/kg, and potato supply grew dramatically as vendors tried to lock in their profits.

Presently Anatoly Yarovoy, Wholesale Price Monitoring Specialist of the Agricultural Marketing Project, reports an insignificant decrease of potato supply at the Kyiv wholesale market. However, enough of a supply remains to keep prices from increasing. But a shortage of quality potatoes are still observed and this is reflected in the higher average price. Specialists of the agricultural market forecast continued price stability, with a small increase in concurrence with a jump in demand before the New Year holidays.