Price storm for potatoes: Dynamics and factors of price increase

The first week of 2024 in Ukraine was marked by a sharp rise in potato prices, which averaged 11%, according to analysts of the EastFruit project. Wholesale prices for this root vegetable range from 15 to 20 hryvnias per kilogram ($0.39-0.52), which is on average 11% higher than at the end of 2023.

According to experts, the main reason for the recent increase in potato prices is the overall reduction in the supply of potatoes on local farms. Many Ukrainian producers who do not have the capacity for long-term storage have already completed potato sales in the first half of this season.

Wholesale companies complain about the lack of quality potatoes on local farms. Farmers attribute the problems with potato quality to unfavorable weather conditions during the harvest: prolonged rains affected the presentation and storage of potatoes.

Producers also claim that the planting material used in 2023 was not of proper quality. This led to a deterioration in product quality and affected price dynamics.

As a result, the selling prices for potatoes in Ukraine are already 3.9 times higher on average than in early January 2023. Many market participants believe that in the near future, the growth rate of prices for this product will accelerate significantly.

Ukrainian potatoes are becoming an object of attention of the national market, and it is important to consider and understand the factors that influence its price dynamics in order to effectively manage costs and maintain the sustainability of the agricultural sector.