February 15 2007, 13:35

The deficit for seed potato in Ukraine, again

According to information provided by the specialists of "Agrooglyad: Vegetables and fruits" journal, the deficit is observed on the national seed potato market.

Past season many farms had to reduce their plans regarding the potato cultivation areas after they failed to buy seed potato for an affordable price. As a result, the potato acreage in Ukraine 2006 was noticeably smaller than it was potentially possible. Also, the quality of the harvested potato was deteriorated because of the lack of proper seed material. The deficit for seed potato in 2006 is the consequence of the limited potato production in 2005 and winter frosts, which have destroyed significant volumes of the stored product. As a result the prices were high both for the commercial potato and for the seed material.

This season the deficit for seed potato was preconditioned by the poor potato harvest in Europe; as a result, Ukrainian companies were not able to import the sufficient volumes of seed material to the country. Some EU companies, in particular Dutch enterprises, had even to pay back the advance payments for seed potato admitting that they were not able to perform their obligations to the fullest extent.

The lack of the imported seed potato led to the demand growth for the seed potato of national origin. Ukrainian producers provide seed material of the first and second reproduction, and also "elite" product. The total price range for seed potato is $0.5-0.9/kg at the present moment depending from the variety and the reproduction. However, the farmers mention the lack of such material as well.

"The existing deficit for seed potato in Ukraine will not result in the reduction of potato cultivation areas this year; however, the professional producers will not extend the potato acreage as much as they could if the seed material was available. Also, the quality of the future harvest will be affected", Maxim Yenchenko says, the Senior Market Information Specialist of the Agricultural Marketing Project. "However, there is a positive moment in the present-day situation. The deficit for seed potato can prevent the possible potato overproduction in the coming season. The thing is, the temptation to rapidly extend the cultivation areas is quite great in the circumstances when the price is several times as high than the production cost", the specialist says.