Information for fruit and vegetables business in CIS
Ukrainian market expects the price increase on root crops and cabbage in the recent months
Despite of the fact that carrot and potato harvesting is still going on in Ukraine, the price on these commodities started to grow. It is proved by the tentative prognoses made by the Agricultural Marketing Project (AMP) about the decreased carrot and potato production in Ukraine. Market players think that the price on these commodities will grow further; many producers and wholesalers store the significant volumes of tomato and carrot. AMP analysts expect potato production in Ukraine to decrease 20%, carrot production - 5-10% in 2005.
The positive price expectations concerning the prices on these commodities were implicitly proved by the price situation in the neighboring countries. The price on root beets in Poland is 10-15% higher than in Ukraine now. The producers from the other countries of Central and Western Europe also report about poor harvest of carrot and potato.
The situation with red beets is a little bit stable, as the price on it is steady in Ukraine, and the production is expected to be on the same level as a year ago. It's hard to evaluate the situation with onion - the supply of this commodity remains sufficient, and the price is stable. According to AMP prognosis, onion production may increase 5-7%. So, the hopes for high price for stored onion are unlikely to be justified, as the quality of onion is better this year and it will be stored more effectively than a year ago, to the specialists' opinion.
In the whole, the produce market players should not forget about the constantly growing number of modern produce storages, as well as the number of those who are going to store the produced commodities. Despite of the still little quantity of storages, the seasonal price fluctuations start to smoothen a little. Before the decision to construct storage, you should have trustful information about the market situation.
You can get more information about the perspective development of the produce market of Ukraine this December during the second international conference "Fruits and Vegetables of Ukraine 2005". All the conference participants will obtain a unique handout materials with the exclusive surveys conducted on the national produce market, and the whole set of the reference materials.