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February 6 2007, 09:21

Potato deficit in Europe: does it mean another export item for Ukraine?

According to the monitoring of the world potato market, conducted by the specialists of "Agrooglyad: Vegetables and Fruits" journal, a severe deficit for this product has being observed in the European Union till the present moment as a result of the poor potato harvest 2006. In addition to a very dramatic decrease of potato yield and production, the potato growers in most EU countries faced a serious problem of the product quality. In particular, it was quite difficult for the producers of frozen French fries to buy the proper raw materials even at the time of potato harvesting.

The present situation on the EU potato market results in the constant price growth for this product. For example, the prices for potato are in average 1.5-2 times as high in Poland comparing to Ukraine, though Poland is the largest potato producer in the European Union at the present moment. The analysts forecast the further price growth for potato for another 40-60% at minimum in the EU before the newly havrested early potato enters the market. In other words, around 20% monthly price growth is expected.

So, if the forecast of the potato price growth in Poland and in the other EU countries is confirmed, the export of this product from Ukraine can become quite profitable. The rates of potato price growth are not so high on the Ukrainian market than in Poland. According to the forecasts done by the analysts of "Agrooglyad: Fruits and Vegetables" journal, the quality potato can grow 15-20% more expensive during the mentioned period of time excluding the possible growth of the export demand. If the exporters are able to set the supplies of the quality potato from Ukraine to the EU countries, the prices will possibly grow more significantly.

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