Vegetable prices in Ukraine have significantly dropped due to market oversaturation. High prices in 2022 led to a massive increase in vegetable cultivation in 2023, resulting in overproduction and a subsequent price decline. Prices for carrots and onions have especially fallen, while beets have maintained their price.
The onset of the full-scale war and the loss of southern regions have severely impacted the market. New agricultural companies in central and western regions have started growing unfamiliar or regionally new crops. The decreased population due to emigration has also reduced the demand for vegetables.
Storage costs are significant, depending on the type of vegetables, storage conditions, and energy resources used. Power outages and high diesel prices make storage expensive.
Processing plants demand high-quality products and are willing to pay more for vegetables with minimal waste. While there are vegetable freezing plants, they are few, and their profitability is challenged by low prices for frozen products.
According to Vadym Krychkivskyi, director of Organic-D LLC, vegetable prices will stabilize over time, with the business becoming profitable around 2025. Successful vegetable cultivation requires a systematic approach and several years to achieve stable results.
Source: propozitsiya.com