In Ukraine, the price dynamics for basic vegetables has begun to change
In Ukraine, the price dynamics for basic vegetables has begun to change.
Potatoes have mostly been getting cheaper since mid-December. Sellers tried to get rid of stocks faster, especially from products that do not tolerate long-term storage. However, the situation has changed since mid-January.: Demand remains stable, warehouse volumes are declining, and wholesalers have begun to review prices. Now potatoes are sold at 7-13 UAH per kilogram, which is about 16% higher than the level of the beginning of January. At the same time, in annual comparison, it is still noticeably cheaper – about 60-65% lower than last year's prices. But market participants agree that this is temporary: as stocks run out and spring approaches, growth will accelerate.
A similar scenario is unfolding in the carrot market. The supply is gradually decreasing, and farmers are already raising selling prices to 6-12 UAH per kilogram, which is about 15% higher than a week earlier. High-quality carrots are increasingly being held back in anticipation of further price increases. As in the case of potatoes, current prices are still significantly lower than last year's prices – by about 70% – but this difference is rapidly decreasing.
An additional pressure factor is the sharp increase in the cost of electricity for enterprises. Storing vegetables in refrigerators, sorting, packaging and logistics are directly dependent on energy consumption, and an increase in the cost of electricity will inevitably be included in the final price. So far, the effect is just beginning to manifest itself, but closer to spring it can play a key role.
As a result, there is a situation where basic foodstuffs remain relatively cheap only in comparison with last year, but internal market factors are already forming the ground for a sharper price spike. And if current trends continue, the spring rise in prices of potatoes and carrots may be noticeably stronger than consumers expect.
The Kherson Bulletin Telegram channel
Source: Telegram "HersonVestnik"