Potatoes following buckwheat?
Heat, pests, and the absence of industrial production deprived Ukrainians of 30 percent of the potato crop
The wave of “buckwheat fever” threatens to turn into a “potato boom.” The price for potatoes is rising almost every day: over the last week the wholesale price grew by 40 percent. In addition, according to experts, the wholesale price of 3.5 hryvnias per kilo is not final, though some stabilization is expected. The agrarian market expert of the Ukrainian Agrarian Business Club Roman Slastiona predicts that the wholesale price for potatoes may rise to four hryvnias per kilo this fall.
Farmers argue that the potato price increase is objective. Specific weather conditions, the absence of technological production organization, and decades of the same seed material are the reasons for the deficit and low quality of this year’s potato crop. Experts are sure that there are no deliberate psychological effects or cartel practices involved, as 98 percent of Ukrainian potato production is provided by private farms, which are price-takers. They simply sell their surplus for the price offered by dealers.
Thus, the potato price increased due to the bad harvest. This year, as of September 1, Ukraine produced 11.2 million tons of potatoes using 65 percent of planted territory. According to the Ukrainian Agrarian Confederation, in 2010 the potato crop will not exceed 14-17 millions tons. This is 15-30 percent less than in previous years.
The loss of potatoes for sale is even more considerable. Almost half of this year’s crop, according to experts, is not conditioned. Potatoes are damaged by rot, pests, and a previously unseen anomaly of accretion roots, says Slastiona.
Ukraine must develop industrial potato cultivation to avoid similar situations in the future, opines Ivan Tomych, the honorary president of the Association of Farmers and Private Landowners of Ukraine and head of the Union of Agricultural Service Cooperatives. He says that this is the only way for the state to stimulate the use of modern technologies for potato growing, and hence raise the domestic potato crop capacity to a European level (300-400 quintals per hectare) and reach appropriate quality standards.
Today the profitability of industrial potato growing in Ukraine is higher than in Europe. In some places, the profit margin reaches 110 percent. However, industrial potato growers do not manage to get such fantastic profits every year. The potato supply from small farms has a random impact on price formation, experts complain, mainly because they are price-takers.
If there are no psychological actions on the part of manufacturers, the consumers, scared by buckwheat, cereals, and bread prices increases, will continue to raise prices by panicked potato-stocking.
Those having the possibility to suitably store potatoes are really lucky. They can even prepare for the usual spring price increase; agrarians predict that in 2011 the price will reach 6 hryvnias per kilo. Specialists suggest buying hand gathered potatoes for stocking, since potatoes gathered mechanically spoil quicker.
However, experts discourage people from storing potatoes in inappropriate places, such as balconies. They say that such stocks will make you pay twice. While the loss of hand-gathered potatoes stored in suitable conditions is 30 percent during the winter, you can expect to throw away half or even more of your reserves as a result of keeping potatoes on the balcony.
