March 9 2006, 16:06

High prices on seed potato can affect the marketable potato harvest 2006

Many subscribers of "Agrooglyad: Vegetables and Fruits" journal have recently asked the specialists for help in search of seed potato suppliers. The information provided by seed potato suppliers is weekly published in the price-lists of "Agrooglyad: Vegetables and Fruits" journal, but the wholesale sets of this product are sold out rather quickly. And, some producers do not reasonably want to buy seed potato on the present market prices - they think it will be difficult to justify expenses, taking into account the perspectives of production increase for marketable potato and the decrease of wholesale prices on this product.

At present moment "elite" and "super elite" perspective varieties of seed potato are sold $0.78-0.98/kg. Secondary seed potato of unpopular varieties can be bought $0.39-0.58/kg. Past year "elite" and "super elite" potato was sold $0.19/kg in average; the primary seed potato was offered even $0.15/kg. So we can say, that the producers without own seed potato will have to deal with other producers and spend 4-5 times more money for seeds, so that potato production cost will grow much. Accounting only the factor of seed potato price increase, the production cost can grow 75-95% in average in the country! But, fuel is going expensive too, as well as fertilizers and other elements of production technologies.

According to the evaluations of the Agricultural Marketing Project, next year the farmers of the main production regions of Ukraine will have to sell potato not cheaper than $ 0.13-0.16/kg. If they purchase seed potato on today's prices, it will be the only way to cover the expenses. Many Ukrainian farmers have already learned how to calculate production cost. There is a great possibility that many of them will not extend potato acreage or will give up potato production at all, if they are not able to purchase seeds on fair prices.

At present moment the Project in cooperation with "Agrooglyad: Vegetables and Fruits" journal is working on the forecast of potato production and prices. It will answer the question about the possibility of so high potato prices next season. The forecast will be published in April issues of "Agrooglyad: Vegetables and Fruits" weekly journal.