September 26 2006, 11:25

Carrot producers are not confident in successful sales

Tight situation is observed on carrot market. Carrot cultivation areas have significantly increased, so most producers of this crop see ill demand for carrot from the side of wholesale companies. At the same time, many carrot growers are quite satisfied with the demand for this commodity.

The most part of a new harvest of carrot is still in field; the price for this carrot significantly fluctuates. For example, as of today carrot is sold on terms of customer's pick up both for $0.13/kg and for $0.29/kg; an average price is about $0.2/kg. Processors pay the minimal price (most of them are juice producers).

According to the updated production and price forecast of the Agricultural Marketing Project, this year carrot production has increased 20%. The production increase was the consequence of extended cultivation areas, cause the yield remained on the past year level. The experts say that production growth will significantly influence the price situation on carrot market. No dramatic price decline is expected; however, an average price level for carrot and red beets can possibly be lower in season 2006/2007 than it was in the previous season. We'll remind that in season 2005/2006 carrot prices hold the level $0.23-0.49/kg during September 2005 till January 2006. After that, the prices started to grow rapidly; in June 2006 carrot cost $0.78-1/kg on the wholesale markets. The similar price situation was observed for red beets; however, the upper price limit was around $0.58/kg.