Information for fruit and vegetables business in CIS
Traditional New Year's Foods Are About 5% More Expensive This Year
According to the price forecast for late December, Ukrainians will be expected to pay about 5% more for traditional New Year foods this year compared to last year; this according to calculations on the basis of retail price monitoring in Ukrainian markets. Experts analyzed prices on 25 main products including common vegetables, fruits, dairy and meat products, not included were with drinks and canned produce. They were surprised to learn prices seemed to grow more significantly this year.
"Traditional" vegetables such as potatoes, cabbage, onions, carrots, and red beets experienced the largest price increases. National producers mostly supply these vegetables to the Ukrainian market and a below average harvest was reported with the exception of onions. In addition, many private producers and families gave up producing the afore mentioned crops this year. Potatoes grew nearly three times more expensive, onions, cabbage, carrots, and cauliflower 2.5 times, and red beets 2.2. The good news is the share of these products' costs is rather insignificant in the total of New Year foods' costs figuring for about 8% in 2005, and 2.5% in 2004, meaning the total expenses will incase only slightly in 2005.
Tomato and cucumber prices are forecasted to remain at approximately same level as a year ago; this being possible due to relaxed terms of tomato and cucumber import. The majority of these products are being supplied from Turkey for the second consecutive year.
Meat and meat products consist of more than 40% of New Year foods' cost. Compared to the previous year, pork and beef grew 20% more expensive and chicken has decreased by 20-30% in connection with Avian Flu and lower consumer consumption. Eggs, for the same reasons have also significantly (20%) decreased in price. Sugar prices have increased by 21%, as well as flour costs over last year. Prices on tangerines, oranges and grapes declined slightly due to a decrease in import taxes on citrus fruits and bananas as of March 2005.
Ukrainians who are going to buy mainly tropical fruits, greenhouse vegetables, and also chicken for the New Year celebration should be able to expect a decrease in expenses when compared to the previous year.