New crop potato prices in Russia have fallen sharply – at the end of August the cost of a kilogram was 19 rubles, which is 27% lower than the level at the end of July. In this respect he is writing Vedomosti newspaper cites monitoring data from the Potato Union dated September 18.
A year ago, farmers were selling potatoes for 36 rubles per kilo. The association’s statistics reflect the prices of unwashed root vegetables that producers offer to retail chains in 25 kg nets.
Tatyana Gubina, general director of the Potato Union, said that the main reason for the sharp drop in prices was the high harvest, which caused a glut of potatoes on the market. According to Rosstat, 5.5 million tonnes of potatoes were harvested in Russia as of September 1; This represents an increase of 4.5% compared to last year.
Two more factors caused supply to increase, which led to a decline in prices. The first is that farmers do not have adequate storage facilities to store potatoes. The association warned the Russian Ministry of Agriculture in September about storage capacity shortages. The second factor is that manufacturers need money for more cleaning.
According to a representative of the Verny chain, from mid-August to the end of September, potato prices in Russia remain traditionally low. He explained that within a month, the cost of vegetables in chain stores in the Central region of the country alone fell by an average of 25%.
Gubina suggested that prices will stabilize at the end of the harvest, that is, in October. By this time, farmers will be able to sell excess goods, and the rest will be sent to warehouses.
AB-Center general manager Alexey Plugov predicts that egg prices in Russia may increase by 15% and meat prices by 5% by the end of 2023. Eggs will become more expensive due to rising electricity prices, the weakening of the ruble and seasonal factors, he said.
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