Information for fruit and vegetables business in CIS
Potato Prices Remain Stable, But Is It Set To Increase?
After an insignificant price increase during the holidays potato costs have returned to where they were before. Presently at the Kyiv "Farmer" wholesale market, small wholesale sets of potatoes cost between $ 0.35-0.43/kg (depending on the size and quality of the set). According to the opinion of Anatoliy Yarovoy, Price Monitoring Specialist of the Agricultural Marketing Project, the potato supply is sufficient.
After having increased rapidly in October and the first half of November, potato prices have stabilized in the market and have not changed significantly since that time. During the period of September to mid November average potato prices grew from $ 0.17/kg to $ 0.37/kg, or 110%, at "Farmer" wholesale market in Kyiv. Poor potato harvest in Ukraine caused a significant shortage in supply and this was the major reason for the price increase. Plant diseases, dry weather during crucial maturing time, and extreme reduction of potato acreage by private houseplots were all factors which resulted in low gross harvest of potatoes. According to estimations by the Agricultural Marketing Project, gross potato harvest decreased more than 20% this year in Ukraine.
A majority of those involved in the market expected the potato prices to increase, but not so dramatically. Wholesale prices increased to $ 0.33-0.37/kg in mid November, as potato supply in the market had grown and vendors tried to obtain the highest profit.
Many of the market players forecast the growth of potato prices in the near future, however the experts have doubts. On one hand, a record price on potatoes made the demand for this product lower. But on the other hand, the potato supply increased in the market due to imports from Russia and also because potatoes are used less as fodder. Furthermore, specialists consider the possibility that potato reserves will turn out to be in excess. If that is the case then we can hope for probable decrease in potato prices.