Low demand in the Ukrainian potato market is leading producers to reduce wholesale prices, according to analysts from the EastFruit project.
Market participants report that the main factor behind the decline is the growing presence of lower-quality potatoes on the market. Analysts say farmers have begun actively selling potatoes from storage as quality has started to deteriorate with the onset of warmer weather.
Potatoes are currently offered on the Ukrainian market at 6–13 UAH/kg (US$0.14–0.30/kg). This level is on average 20 per cent lower than at the end of the previous workweek.
© EastFruit
Producers also report that substantial volumes of potatoes remain in storage. At the same time, trading activity in the segment remains limited.
As a result, growers are lowering prices in an attempt to stimulate demand and clear stocks before the start of fieldwork.
According to EastFruit analysts, potatoes in Ukraine are currently about 61 per cent cheaper on average than during the same period last year.
Market analysts do not rule out the possibility that the downward price trend may continue to accelerate by the end of the current month if market conditions remain unchanged.
Source: EastFruit
