The cost of vegetables in Ukraine has substantially decreased owing to multiple factors. Wholesale prices for cabbage and potatoes have fallen by 30%. Aubergines have decreased in price by half, and cucumbers have a threefold reduction.
This price decline is occurring against the backdrop of a high supply of Ukrainian vegetables, which surpasses demand due to a reduction in consumers resulting from the outflow of refugees and a decrease in the population. Oleg Penzin, the head of the Economic Discussion Club, notes that this surplus of produce has led to a price collapse.
The price reduction can also be attributed to farmers revising their planting plans due to the catastrophe at the Kakhovka Hydroelectric Power Station. This has led to an expansion of land dedicated to vegetable cultivation.
Farmers are currently striving to quickly sell their harvest since these vegetables cannot be stored for a long time.
Despite the price decrease, sales remain profitable for farmers as prices do not fall below production costs. However, it should be noted that this season's prices are low only in comparison to the previous year. Before the war, prices were considerably lower.
According to data from Alexander Khorev, the head of the project "APK-Inform: Vegetables and Fruits," this is a temporary price reduction, and prices are expected to rise again in September when reserves for winter storage are being established. Additionally, during the winter, vegetable prices are expected to increase even further, potentially leading to shortages.
Source: informator.ua