Fruit and Vegetable Market Overview
Cucumbers and Tomatoes
Situation on tomatoes market was ambiguous. Large volumes of field tomatoes from southern regions flooded fresh market. In same cases producers of greenhouse tomatoes to boost sales had to decrease prices because of this factor. According to the information of market players, there is an insufficient offer of high-quality tomatoes in western regions in Ukraine. This situation was caused by recent excessive rains. If we consider further price formation, according to the opinion of market participants, the tendency of price growth is sure to be renewed in the short run.
Under the influence of seasonal reduction of cucumber offer price trend for this commodity remained positive last week. The major reason that led to the price increase was an insufficient offer on the fresh market caused by poor cucumbers harvest this year.
Cabbage prices remained relatively stable past week. Harvest of this commodity was in process, which resulted in a greater offer of late varieties on the market. Market experts viewed this factor as a major reason for stabilization. Under the presser of greater offer some market players even lowered prices by US $0.01 per kilo.
During this week there were no sufficient changes in wholesale and retail prices for potato. Thanks to the fact that potato harvest is in progress, offer of this commodity is not increasing sharply. Market operators think that farmers decided to store part of the harvest to until the middle of the autumn, when more attractive prices for potatoes are expected. Which, in many cases, could be a false expectation.
Price level for carrots during reporting period remained relatively stable as supply and demand were quite balanced. Majority of farmers continued trying to sell carrots at the earlier established prices. According to the opinion of market players, we can expect carrot prices to decline when mass harvesting of this commodity will begin.
Price situation on red beets market during the period in review remained relatively stable. Under the pressure of constantly growing offer of red beets producers tried to keep prices on the same level. Concerning further price formation, market players think that some price decrease is possible in the nearest future.
During the reporting period there were no considerable changes on the onion market. Harvest was under way but supply and demand situation was well balanced. Lowest prices were noted in the southern regions of Ukraine. Usually producers sold onions for US $0.15-0.17 per kilo. According to the information provided by market players, some farmers kept part of the harvest hoping for a higher price.
Situation on the apple market of Ukraine during the previous week has not changed significantly. Prices remained within the previously established corridor of US $0.09-0.38 per kilo. Major part of apples sold on the market came from private household plots. Large farms were planning to start harvesting in the middle of September. As market operators noted, in the western regions of Ukraine low quality apples good only for processing prevailed over the high quality produce.
As harvest moved ahead offer of plums on the Ukrainian market increased, resulting in further price decrease. Wholesale and retail prices of peaches have not changed much during the previous week, despite of the seasonal decline in supply. Market operators expect that prices will increase soon as peach harvest is relatively poor this year.
Exotic and Citrus Fruits
After a long period of stable situation on the market citrus fruits price, during the past week prices increased. Positive price dynamics were supported by decreasing supply of oranges and bananas. According to the experts' opinion, price increase for oranges will continue, because shipments of more expensive oranges from South Africa are expected to arrive at the end of September. Under the pressure of low demand for bananas from population prices are not likely to increase soon. Prices for lemons remained within the earlier established range.
Apple processors pointed out that purchase prices for apples increased at the beginning of the previous week. As representatives of processing enterprises said, such situation was caused by a deficit supply of raw material from producers. As a rule, majority of apples came from household plot owners. At the same time large farms had not started harvesting apples yet. It was also noted that by the same time of past year processors procured a lot more apples than this year. Thus, they expected that prices would continue increasing. However, considering the high percentage of low quality apples in the harvest their forecast does not seem to be very accurate. It is more likely that prices for good quality apples would go up while prices for apples used for processing would remain low, according to Agricultural Marketing Project analysts. Canneries reported that because of high prices for cucumber this year they will have to decrease production of canned vegetables nearly twofold. Purchasing activity of enterprises specialized in processing tomatoes remained high during the reporting period. Supply of tomatoes was sufficient and purchasing prices remained stable. Canneries of central and eastern regions of Ukraine tried to purchase tomatoes in southern regions, where the most reasonable prices were observed.