Experts of UCAB analyzed the consumer basket and concluded that only three plant products went up in price during September: cabbage (+31%), sugar (+3%) and potatoes (+2%).

One of the main reasons of price increase, mentioned by experts, is the decrease in the gross output of these products. Sown areas under cabbage decreased by 3%, under potatoes - by 4%. Despite a slight decline in cultivation, there was a significant reduction in yields. Savings on production resources and unfavourable weather conditions prevailing during the summer (when the rains changed the drought) had the influence over the situation. Overall, UCAB experts expect that the average yield of these crops is to decrease by 5-10%, that means the harvest of cabbage will reduce by 8-11% and the harvest of potatoes – by 10-13%.

In September, the highest price for cabbage was in Volyn region - 10.2 UAH/kg on average, the cheapest cabbage was in Dnipropetrovsk - 6.6 UAH/kg. The average price for cabbage around Ukraine amounted to 8.1 UAH/kg, which is over four times more than the price of the previous year. In October, the price of cabbage will slightly decrease and balance within 7-8 UAH/kg, but might significantly increase when the weather becomes freezing.

The highest price for potatoes last month was in Donetsk region - more than 6.4 UAH/kg, the lowest price was in Cherkasy - 3.8 UAH/kg. The average price around Ukraine was 4.9 UAH/kg, that is 63% more than last year. In October, the price for potatoes will constitute 4.5-5.5 UAH/kg in average around Ukraine, which means a slight deviation from current indicators.

If the price for the previous two products changed mainly due to the weather conditions, in case of sugar beet the volumes of production were planned. The overproduction in 2014 and low purchase prices for the harvest of 2015 the sown areas under the crop were by 28% less. As a result, sugar production this year will drop to 1.2-1.3 million tons, which is 38-43% less than last year. Due to transitional residues Ukrainians will have enough of the product, but the price for it will grow.

In September, the highest prices for sugar were in Luhansk region - about 12.4 UAH/kg, the lowest - in Vinnytsia - 11.6 UAH/kg. The average price around Ukraine amounted to 12.0 UAH/kg, which is 20% more than in the same month last year. In October, the price for sugar might exceed 13 UAH/kg, that means an increase by 7-9%.

Association "Ukrainian Agribusiness Club" 

3 floor, 146 Zhylianska Str.

01032 Kyiv, Ukraine

Phone/Fax: +380 44 2362097/79

feschenko@ucab.ua 

Anna Feshchenko

www.ucab.ua

The Association "Ukrainian Agribusiness Club" (UCAB) www.ucab.ua was founded in 2007 to protect the economic and professional interests of players of agribusiness in Ukraine. UCAB is a unique platform in Ukraine for establishing business contacts between the leaders of agribusiness, improvement their work and dialogue with the government. UCAB actively supports Ukrainian producers in establishing and maintaining international business relations. The Association consists of the largest producers and processors of agricultural products in Ukraine.