Information for fruit and vegetables business in CIS
Traders import to Ukraine up to 300 tons of potato daily
According to the information provided by "Agrooglyad: Vegetables and Fruits", this year potato deficit has been observed first time for many years in Ukraine. The structure of potato production and consumption changed abruptly, so that the price jumped up. Despite of the top record of potato price in the country, Ukraine can import this product only from countries who signed free trade treaty, cause import tax is still too high.
Nevertheless, there are some rumors on market about potato supplies from the other countries to Ukraine. Having been checked, such supplies turned out to be either insignificant or illegal, done without import and VAT tax payments. Still, we should point out, that even illegal supplies noticeably influence potato price in the bordering regions.
In particular, Lyudmila Dzyamko, the Market Information Specialist of Zakarpattya office, Agricultural Marketing Project, informed "Agrooglyad: Vegetables and Fruits" journal with reference to the border point officers, that the population imports potato actively from Slovakia. The officers said they had never witness before that potato could be supplied as a carry-on luggage by Zakarpattya inhabitants. According to Ukrainian legislation, luggage up to 50 kg, worth up to 200 $ is considered to be carry-on and does not require custom clearance and other documents.
As Mrs. Dzyamko informed, potato price does not exceed $ 0.27/kg in Slovakia, that is 30% minimum cheaper than in Ukraine. As a rule, the inhabitants of border rayons bring groats to Slovakia, as this product is more expensive there; potato is brought back. Both Ukrainians and Slovakians make such "business".
The same trading activities are prospering also on the borders with Poland, Russia and Belarus; according to the assessments done by "Agrooglyad: Vegetables and Fruits" weekly, more than 200-300 tons of potato can come to Ukraine daily, unrecorded by the statistics. According to the preliminary evaluations, the mentioned potato supplies are enough to satisfy the needs of 1 million city fully.
Thanks to this "grey" import, potato prices are significantly lower in the bordering regions than in the central and southern oblasts of Ukraine. The Information Monitoring Specialists of "Agrooglyad: Vegetables and Fruits" journal observe the gradual demand decrease on potato in the regions with the highest prices.