Potato prices are falling sharply in Ukraine: what’s the reason?
16 March 15:04
Potato prices in Ukraine have fallen sharply due to weak demand and large stockpiles. This was reported by analysts from the agricultural project EastFruit, according to "Komersant Ukrainian".
According to their data, as of March 14, potatoes were selling on the Ukrainian market for 6–13 UAH per kilogram, which is approximately 20% cheaper than at the end of the previous workweek.
Why are prices falling?
The main reason is the increase in the volume of substandard produce on the market.
After the weather warmed up, some of the potatoes stored in warehouses began to deteriorate more quickly. Because of this, farmers are trying to sell their stocks as quickly as possible, even at lower prices.
As a result, more produce has appeared on the market, putting further pressure on prices.
Large stocks and weak trade
According to EastFruit, many Ukrainian producers still have significant volumes of potatoes in storage.
At the same time:
- trading activity remains low;
- buyers are in no hurry to increase their purchase volumes;
- the market is effectively oversupplied.
To stimulate demand, farmers are forced to lower their selling prices.
Prices are significantly lower than last year
Current prices differ significantly from last year’s.
At present, potatoes in Ukraine cost approximately 61% less than during the same period last year.
This is one of the lowest price levels in the past year.
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Recent price increases
Back in February, the market situation was different.
At that time, EastFruit analysts reported that potato prices had risen by about 14% over the course of a week.
Prices at that time ranged from 8 to 15 UAH per kilogram, depending on quality and batch sizes.
However, the increase did not last—due to excess inventory, the market quickly shifted to a decline.
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