August 15 2006, 16:43

Prices for most vegetables are significantly lower than a year ago

Weather conditions are favorable to vegetables this year; in line with the extended cultivation areas for most vegetable crops, this factor resulted in significantly greater vegetable harvest than a year ago. Despite of the delayed ripening, harvest has not declined, even in view of the later planting as a result of cold weather.

We can see the first reaction on the increased vegetable production on market - the prices for many vegetables are quite lower now than a year ago. As of mid August, cucumber prices are in average twofold (45%-65%) lower than in 2005. Squash and cabbage have demonstrated the same dramatic price decrease. Squash is now twofold cheaper in average; cabbage price is sometimes threefold lower comparing to the previous season. It happens due to a very significant production growth observed for medium cabbage varieties. An average price for carrot has declined nearly one third. Further price decrease for carrot is expected, as carrot cultivation areas are much more extended than a year ago. The representatives of some wholesale companies even announced the expected price for wholesale carrot shipments to be around $0.05/kg.

Bulb onion is still more expensive than in season 2005. However, the experts forecast the prices to continue decreasing. In the period of mass sales the prices won't be higher than in the previous season. Pepper price is on the past year level. Tomato price is also on season 2005 level and even somewhat higher. Still, active tomato harvest has been delayed for two weeks this year; it started only mid August. So we forecast a rapid price decrease for tomato in coming weeks.

Potato is practically the only crop which price is significantly higher than a year ago. According to the specialists' forecast, potato price won't go down to past year level at least till the end of September. The price for potato is 50-70% higher than a year ago.

The prices for cucurbits crops have not stand the increased supply. The wholesale price for water-melon is one third lower, melons cost twofold cheaper than in season 2005. The situation is worse for the producers who sell water-melons on terms of customer's pick up - the set price is 3-4 times lower than a year ago.