Potato prices collapse in Ukraine: Experts explain the phenomenon.

Potato prices in Ukraine are decreasing, but remain higher compared to last year

Despite the nearly depleted stocks of last year's potatoes in local Ukrainian farms, prices for this product have started to decline. According to analysts from the EastFruit project, the quality of last year's potatoes in storage continues to deteriorate rapidly, which, in the context of low demand, leads to further price reductions.

Currently, producers from most regions of the country are shipping last year's potatoes at a price of 15-24 UAH/kg ($0.36-0.58/kg), which is on average 12% cheaper than at the end of last week.

'The decline in trading and procurement activity in the market is due to the fact that the majority of offers at the moment consist of low-quality products, while high-quality potatoes are practically gone from Ukrainian farms,' market participants note.

Experts believe that the reason for the decline in product prices is the decrease in demand for potatoes from both wholesale companies and retail chains.

At the same Time, despite the downward price trend, the price of potatoes in Ukraine today is on average 25% higher than during the corresponding period last year.

Analysis

The decline in potato prices due to low demand has led producers to sell it cheaper, but prices still remain higher than in previous periods. The deterioration in product quality also affects the market, creating a set of circumstances that influence pricing policy. The situation may also worsen due to an excess of low-quality goods on the market, which further reduces demand for potatoes.