March 15 2006, 10:16

Supply of carrots and potatoes on Ukrainian market is at least sufficient and could affect prices

According to information of Ukraine Agricultural Marketing Project, the offer of carrots and potatoes in Kiev rose recently. Decline in potato production and severe frosts in January damaged significant share of potatoes and vegetables in the storage facilities and thus, have reduced the offer of these products. As the consequence, prices of vegetables went up. Since vegetable and potato prices were so high during the past few months, consumption went down significantly, which, means that there is probably more vegetables (in particular carrots, potatoes and onions) to satisfy market demand until the new crop. Moreover, high prices have cause significant increase in imports of these products from Russia, Belarus, Poland, Slovakia, Hungary and some other countries.

Moreover, there is a good probability, that these stocks will enter the market pretty soon and cause some price decrease, which is unexpected by many. Analysts are inclined to explain increase in the supply of vegetables by an attempt of storehouses to get rid of produce before new crop vegetables enter the market. It is also necessary to consider, that during the past year the number of good quality storage facilities in Ukraine has increased essentially. Brand new modern storage facilities were built by many farmers as well as by wholesale companies.