Prices for basic vegetables for the "borscht set" in Ukraine have fallen to critical levels. Currently, the cost of products on the market often does not even cover the costs of growing and storing them. This was reported by Ksenia Guseva, an expert on the fruit and vegetable market at APK-Inform, in an article for Plantator magazine.
Current market prices (UAH/kg):
The situation in terms of main positions looks as follows:
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Cabbage (last year's harvest): 2–6 UAH/kg
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Onion: 3–7 UAH/kg
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Beet: 3–7 UAH/kg
Key reasons for the price spike:
Experts identify several factors that put pressure on the market and deprive producers of profits:
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Market oversaturation: Supply far exceeds real demand. The large amount of surplus in storage is forcing farmers to sell off their goods at any price.
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Quality issues: After prolonged storage, the quality of the products decreases, which prevents manufacturers from claiming a higher price segment.
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Low purchasing power: Even quality goods do not find sales due to limited consumption within the country.
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Lack of margin: “There is a supply, but it is not converted into money. As a result, manufacturers work without a margin or at a loss,” states Ksenia Guseva.
The role of imports
Interestingly, unlike in previous years, imported products are not currently affecting the market. Domestic prices in Ukraine are so low that importing vegetables from abroad is economically unprofitable.
Forecast: The market will remain under pressure from excess supply until the old crop is fully sold. For many farms, this season could be unprofitable, which calls into question the volume of plantings next year.
