September 19 2007, 14:34

Ukrainian vegetables: no need for advertisement

The declined yield and vegetable deficit on market result in rush demand this season. Despite of the extremely high prices in the harvesting period the wholesale companies and storage managers are literary standing in queues to purchase such vegetables like carrot and cabbage. The producers of potato, onion and table beet face no problems to sell their products as well.

"In connection with the observed deficit several producers, who used to post their price-rows on "Agrooglyad: Vegetables and Fruits" on a regular basis, have temporary stopped posting offers. They fail to manage the abundance of bids from the side of wholesalers" Maxim Yenchenko, the Coordinator of "Agrooglyad: Vegetables and Fruits" says. Usually farmers post offers even if the demand for vegetables is good - in most cases they can get better price on website trading floor. But this season the demand reached such a level that, if the producer posts a good offer, he will experience difficulties to manage calls with the bids to buy his products. That's why we recommend the sellers setting the price in their initial offer".

To the opinion of Maxim Yenchenko, the observed deficit is the result of several factors. We may consider hot and droughty summer to be the main reason for vegetables to grow expensive; the weather has significantly declined vegetable yield on the most part of the territory of Ukraine. Also, this year many farmers reduced vegetable cultivation areas. They were unhappy with low prices in the harvesting season past year, when the weather let the producers have great harvests. Moreover, the acreages of many crops were extended past season. The other important factor, which stimulates the price growth, is market players' expectations for the prices to increase - it concerns both producers and buyers. As is known, such expectations, along, are able to stimulate the prices to increase.

We'd like to point out that the present day situation on vegetable market was rather accurately forecasted in Production and Price forecast for vegetables and fruits issued by "Agrooglyad: Vegetables and Fruits" journal in May 2007; the forecast was mainly confirmed despite of the fact that no one was able to foresee the summer drought that time. The updated production and price forecast will come public in October 2007; in particular, it should help producers and wholesalers to answer to the questions related to the relatively optimal period of vegetable storage from the point of view of market, and the price perspectives till the start of the next season.