In Ukraine, the prices of potatoes are currently almost at the cost price; however, a gradual increase in the price of this vegetable is expected starting in March. Andriy Marushchak, the commercial director of the Dutch company Van Dijk Technics, which specializes in vegetable storage, explained the peculiarities of price formation.
This is reported by Finway
Factors Behind the Low Price of Potatoes
According to the expert, the current low price is primarily related to a significant increase in the area planted with potatoes compared to last year. Many Ukrainian companies, encouraged by the high prices of the previous season, doubled their plantings, hoping for a repeat of last year’s situation. Additionally, favorable weather conditions contributed to a high yield not only in Ukraine but also in other European countries.
“In Poland or the Netherlands, farmers receive subsidies from the government, while our farmers have to work with their own funds. There are no preferential loans or special conditions for our producers,” the expert explains.
European Experience and Price Forecast for 2025
Despite the low cost price, the price of potatoes in the Ukrainian market will always remain higher than in European countries. This is due to the lack of government support for Ukrainian farmers, unlike the agrarians in Poland and the Netherlands, who receive subsidies and have access to preferential loans.
An important factor is also the availability of modern storage facilities in European farms. Thus, farmers in Poland can store potatoes until mid-summer without losing quality and export them to Ukraine under favorable conditions. Starting in March, as well as in April and May 2025, a gradual increase in potato prices is expected when imports from Poland, where there were no quality issues this year, enter the domestic market.
Therefore, in the coming months, prices will remain relatively low, but with the onset of the new season, an increase is forecasted due to a reduction in domestic stocks and an activation of imports.