November 8 2006, 17:07

The expectations of cabbage price growth might not come true in Ukraine

The controversial price situation has been created on cabbage market, according to information provided by the specialists of "Agrooglyad: Vegetables and Fruits". For example, the price level remains relatively low - 0.13-0.19/kg - on the wholesale markets. Those enterprises sell the commodities there which do not possess appropriate conditions for cabbage storage. And, one can buy cabbage even cheaper in farms on terms of customer's pick up. This fact can be explained by the producers' desire to sell the remaining cabbage before the frosts and to avoid quality deterioration.

At the same time, the owners of vegetable storages are declaring now the higher level of sales prices. The specialists of these enterprises say that they have to bear more expenses for storage this season. Vegetable storages plan to sell cabbage for not less than $0.25-0.31/kg. Some storages are declaring such prices right now, but, of course, they have not sold anything yet. Vegetable bases are waiting for the beginning of frost in hope that the shipments of cheap produce are over. As a consequence, the price will significantly grow.

In their turn, the experts of produce business are not as optimistic as vegetable storage owners concerning the price growth in the coming months. The production increase of 10-12% for white cabbage (according to the data of the Agricultural Marketing Project), and also low prices during the active harvesting season stimulated the extension of cabbage volumes in storages. Taking into account the fact that cabbage can be stored for several months even in the ordinary storages, cabbage supply can be great on market. An, it will press the prices.

The detailed information concerning the cabbage price perspectives in the period December 2006 till May 2007 and the preliminary perspectives of cabbage production in 2007 will be presented to the participants of the conference "Fruits and Vegetables of Ukraine 2006. Open Market" to be held in Kyiv on December 5th-6th 2006. We remind that around two weeks are left by the end of registration of the participants.