Despite stable demand, farmers are forced to reduce prices for carrots in Ukraine


Despite stable demand, farmers are forced to reduce prices for carrots in Ukraine

08/11/2020

The demand for carrots remains steadily high, and manufacturers use a decrease in previously established prices as a tool to increase batch volumes when selling existing products.

As analysts of the East-Fruit project note, the increase in supply provoked a decrease in the price of carrots on the Ukrainian market.

Let us remind that two weeks earlier the prices for this root crop not only did not decrease, but gradually grew under the influence of interruptions in the supply of new batches of products to the market. Operators in the southern regions of Ukraine reported that rainy weather did not always allow farmers to harvest. The second factor that led to a decrease in the supply of carrots on the market, experts of East-Fruit called the transition from early varieties to medium varieties, which also influenced the instability of product supply to the market.

Last week on the carrot market in Ukraine ended with the establishment of a price range of UAH 6-9 / kg ($ 0.22-0.33 / kg), but since the beginning of the current this range has decreased to UAH 5-7 / kg ($ 0.18-0 , 25 / kg), depending on the quality and volume of the batch of products. At the same time, the demand for carrots remains steadily high, and manufacturers use a decrease in previously established prices as a tool to increase batch volumes when selling existing products.

Analysts explain this development of the situation in the carrot segment by a gradual increase in the supply of products on the market, which is facilitated by favorable weather conditions in the main regions of production, as well as the transition to trade exclusively in medium varieties of carrots, the harvest of which has reached the peak of the active phase.

See also: Potatoes have risen in price in Poland, and carrots have fallen in price in Georgia and Belarus. Market Watch 32 Week of 2020

If we compare the situation on the carrot market with last year, then this season farmers are still satisfied with the course of events. In 2019, during this period of time, wholesale carrots in Ukraine went on sale at UAH 4.5-6 / kg ($ 0.16-0.22 / kg), and the sales rates were noted as moderate.

East-Fruit analysts do not exclude that even before the end of August this year, prices in this segment in Ukraine may drop to last year’s figures, but only if favorable weather conditions persist, which will contribute to the continuation of the harvest of medium-sized carrots on farms. In the event that weather conditions still deteriorate, the market for these root crops may also experience upward price changes.

At the same time, the fixation of high prices for carrots in Ukraine is not expected in the coming months, experts of East-Fruit report, referring to the preliminary forecast of production and prices for potatoes, vegetables of the borscht set and apples of the project “APK-Inform: Vegetables and Fruits”, updated data of which expected by mid-September this year.

EastFruit

Main news and analytics of the produce market on Facebook and Telegram East-Fruit.com

Subscribe!

The use of the site materials is free if there is a direct, open for search engines, hyperlink to a specific publication of the East-fruit.com analytical platform.






->