January 25 2006, 10:08 Agrarian Marketing Project

Frosts Lead to Rapid Vegetable Price Increases

Strong frosts captured Ukraine and fostered vegetable price increases. There is a threat that vegetables will freeze during loading and transportation to retail trade points, so many companies have suspend sales till warmer temperatures occur. A few companies continue sales, despite of the total demand decrease, as many retail markets and also suspended sales operations. These companies observe demand growth and increased prices. Prices on "borsch" vegetables: cabbage, potatoes, onions, carrots, and red beets have increased by 20-60% during the week. Cabbage increased in price by $0.20-0.30/kg, potatoes by 0.10-0.20/kg, carrots and red beets by 0.10/kg, and onions by $ 0.04-0.08/kg.

The majority of those involved in the market think the prices will return to the previous level after it gets warmer.