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November 9 2006, 11:07

Ukrainian producers prefer to store vegetables

The monitoring of the situation on Ukrainian produce market proves the significantly exceeding supply of carrot, cabbage, table beets, onion and potato over demand for these crops. As a result, the prices for these vegetables are constantly under pressure on the inner market of Ukraine. The producers have to search for the possibility to load root and bulb crops, as well as cabbage, to storages. Those farmers sell the produce for the minimal prices who do not own storages or who have no other option to store vegetables.

Many wholesale companies have already purchased large volumes of vegetables for a rather high price. They loaded commodities to storages in hope to the price growth on market. The prices have not grown and even have declined a little since that time. So, many companies doubt about the perspectives to have the price which compensates the expenses for vegetable purchase and storage.

Basing on the experience of the previous years, many farmers and wholesalers hope for the price growth in winter and the price peak in spring. However, many of them forgot the time when it was impossible to sell cabbage even for $ 0.02-0.03/kg in May. We should take into consideration the fact that, with a great share of probability, the volumes of stored vegetables will reach record level this year. So we cannot expect a very rapid price increase for these commodities in winter-spring period.

More details concerning the perspectives for fruit and vegetable prices 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 only around two weeks are left to register for participation in the event.

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