March 28 2006, 16:17

Vegetable and potato production feasibility increased significantly in Ukraine

Potato and vegetable production became feasible in Ukraine in 2005. According to the preliminary data provided by State Statistics Committee, potato production feasibility grew from -0.7% in 2004 to +20% in 2005, vegetable production from -5% to +15.2%.

According to the evaluations of the Agricultural Marketing Project, the real level of vegetable and potato feasibility was much higher past season. For example, production cost of one kilo of potato was not more than $ 0.07-0.08/kg in the main production regions. The producers had the price not less than $0.17/kg if potato was sold at once after harvesting. If potato was stored at least for a month, the farmers were able to sell stocks on price more than $0.29/kg. In December an average purchase price exceeded $0.39/kg. Other vegetables production was also cost efficient. The experts mention carrot, cabbage, cucumbers (for those who were able to follow the technological requirements) and onion as the most profit-making crops. Farmers also made a good profit on bell pepper and egg-plant production, as well as green pea production for processing. Production of niche crops in Ukraine was profitable too: broccoli, Pekinese cabbage and cauliflower, sweet corn. Of course, the requirements of production, handling and marketing technologies were obligatory to observe. For example, white cabbage production cost is not more than $0.03-0.04/kg in the main production regions; still the sales price was about $ 0.29/kg right after harvesting in 2005. "Cabbage accrues more than a quarter of gross vegetable production in Ukraine. So, vegetable feasibility of 15.2% in 2005 sounds too modest", Andriy Yarmak says, the Senior Market Information Specialist of the Agricultural Marketing Project.

"At the same time, farmers should be careful to orientate on the mentioned data. If they are going to produce vegetables this year, they should keep in mind the possible 20% vegetable production growth in Ukraine; overproduction can take place for such crops as cabbage, onion, carrot, pepper and cucumber. The expert adds that tomato, egg-plant and possibly potato (if inexpensive and quality planting materials are purchased) can be very attractive next season. He considers garlic to be a very profitable crop; still practically nobody produces it in Ukraine in commercial volumes.

From the long-term perspective, according to the assessments of the Agricultural Marketing Project, fruit and berry production will be the most profitable if the most advanced technologies and perspective varieties are applied.