Despite the fact that potato stocks at local farms and households are practically depleted, the price of these products on the Russian market has been declining since early May, report EastFruit project analysts.
According to market participants, the quality of last year's potatoes in storage continues to deteriorate rapidly, which, given the low demand, is pushing prices down.
So, at the moment, producers are ready to ship potatoes from the 2019 harvest at a price of 10-18 rubles / kg ($ 0.14-0.25 / kg), which is on average 24% cheaper than a week earlier.
The project's experts believe that the main reason for the price drop is the reduction in the demand from both wholesale companies and retail chains. According to market participants, the decline in trade is due to the fact that the bulk of the supply consists of low-quality products, as there are practically no high-quality potatoes in Russian farms.
It is worth noting that at the moment, the price of last year's potatoes on the Russian market is already on average 10% cheaper than at the beginning of May 2019. Moreover, most market players believe that the price will continue to decline next week.