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War on vegetable prices in Poland

From the beginning of May to the end of July this year, the average price of vegetables in Poland has been 1.8% higher than in the same period last year. According to Michał Majszczyk from Hiper-Com Poland, this small change is quite surprising, as this year the country has had to deal with dry weather at the turn of spring and summer. It is possible that retail chains do not want to risk a large increase in prices for fear of oversupply of goods that have a short shelf life, as cold storage would generate additional costs.

"The coronavirus outbreak and the Sunday trading ban resulted in less traffic in stores. They consciously focused on offering the lowest possible vegetable prices. In this way, they wanted to encourage consumers to do their groceries there again and take away some customers from marketplaces and local markets, where it is more challenging to uphold the sanitary regulations," says Magdalena Szlehengier, Strategic Clients Manager at DNB Bank Polska.

As an expert from the BLIX Group adds, drops in average prices have been recorded for six out of the ten most promoted vegetables in stores. Beets have recorded the sharpest drop (18%), followed by such goods as onions (-15.7%), cabbage (-6.2%) and carrots (-5.9%). Meanwhile, potatoes (-1.3%) and peppers (-1.3%) are only slightly cheaper than before.

"The reason for the decline in products such as beets, onions, carrots etc. is the contrast with 2019, i.e. the rapid increase in prices. At that time, the drought was very unfavorable for the cultivation of open ground vegetables. This results in the reductions that we are currently observing," says an expert from DNB Bank Polska.



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