Buckwheat is getting more expensive: what affects the market and when to expect peak prices
30 October 2024 12:14
For several years now, Ukraine has been producing more buckwheat than it consumes, which has kept prices for this product relatively low. Experts predict that the price of buckwheat may rise sharply by the end of 2024. Economic expert Oleg Pendzin explained in a commentary to "Komersant Ukrainian" how the lack of harvest and weather conditions affected the price situation.
Oleg Pendzin noted that in previous years, buckwheat production in Ukraine exceeded demand, which allowed prices to remain at an affordable level.
“For several years in a row, we produced more buckwheat than we consumed. And, by and large, the price of buckwheat is quite low,” Pendzin said.
However, this year, the area under buckwheat has decreased, which is one of the factors that could lead to a significant rise in price.
“This year, less buckwheat was planted because, in reality, as I understand it, the price of buckwheat was too low to fully ensure the profitability of this type of agricultural activity,” he explained.
In addition, unfavorable weather conditions, such as abnormal drought and heat, also had a negative impact on the buckwheat harvest.
“The abnormal drought and heat resulted in less buckwheat being physically produced,” the expert added.
According to Pendzin, in some regions of Ukraine, the purchase price for buckwheat has already increased by 30-40%.
“So we are already seeing a 30-40% increase in the price of buckwheat in the purchase,” he said.
At the moment, Ukrainians still have the opportunity to buy buckwheat from the last harvest, which helps to keep prices down in retail chains.
“So far, we are finishing off the last harvest buckwheat. It’s lying well, there are no major problems, and so far it is still holding its price in retail chains,” Pendzin said.
Nevertheless, the expert predicts that by the end of November – beginning of December, when the new harvest starts to be sold, we can expect a serious increase in buckwheat prices.
“I think that closer to the New Year, in late November – early December, we will see a serious increase in buckwheat prices. This is when the new harvest buckwheat sales will start,” the expert summarized.
