December 1 2006, 16:06

Potato prices have decreased in Ukraine and increased in Poland

The controversial situation has been created on potato market in the recent month. An average wholesale price for potato has decreased 8-15% throughout Ukraine (down to $0.25-0.29/kg). At the same time, an average price has increased 15% in Poland ($0.28-0.34/kg).

Sergey Karpenko, the professional potato producer from Poltava oblast, comments the situation.

Analyzing the sales structure this year, we can say that small wholesale buyers from Donetsk and Kyiv accumulated large volumes of potato. They created the rush demand purchasing the produce for $0.3-0.35/kg in hope that the past year price situation is likely to repeat. The producers from the northern oblasts have got a greater potato harvest this year than they expected. But, considering the price growth, they decided to postpone sales till winter. The part of produce was brought from Belarus and Poland. By the end of November those producers and wholesalers have started to sell produce who were not able to provide the conditions for potato storage in case of low temperatures. The market has quite quickly saturated, so the price decline started.

The situation in Poland is predetermined, first of all, by the withdrawal of labor resources to the EU countries observed this year. As a result, the production cost has increased. Polish producers consider the transfer of potato production to the neighboring Belarus in order to attract cheaper labor resources. A part of potato was taken to Ukraine and to the EU countries.