Ukraine is threatened by overproduction of vegetables: prices have already begun to fall

There are more vegetables, but demand remains limited

The vegetable sector continues to attract new producers. Part of the farmers who used to grow grains, due to problems with sales and logistics, consider vegetables as an alternative direction.

If the trend continues, the supply may increase even more. For manufacturers, this creates a new problem: it becomes easier to grow a crop than to sell it profitably.

Pressure on prices is already noticeable. The vegetables of the borscht set are now expensive almost twice as cheap as last year.

How much do vegetables cost?

The following prices are currently fixed on the wholesale market:

• - cabbage — 14–18 UAH/kg;

• - carrots — 18–25 hryvnias/kg;

• - beets — 6–10 UAH/kg;

• - onion — 13–20 hryvnias/kg;

• - potatoes — 6–12 hryvnias/kg.

In-store prices are traditionally higher due to logistics, storage and retail costs.

At the same time, the price reduction did not affect all fruit and vegetable products. For example, the situation with raspberries is different due to crop losses caused by frost.

Tomatoes are also becoming cheaper

The tomato market is also in a difficult situation. Greenhouse tomatoes are now sold in bulk for approx UAH 30–50/kg.

Field tomato-cream costs from UAH 10/kg. In the south of Ukraine, in particular in Odesa and Mykolaiv regions, part of the crop suffered from sunburn. Such tomatoes are no longer suitable for sale on the fresh market, so they are sent for processing.

Processing companies offer approx UAH 10/kg, however, farmers consider this price insufficient. At the same time, high-quality field tomatoes and products from farm greenhouses can be sold more expensively - approximately UAH 18–22/kg.

Cucumbers, on the contrary, began to become more expensive

On the cucumber market, the situation is the opposite. Last week, prices began to rise due to the completion of the first turnover of greenhouse plants.

The new growing cycle will start only in September, so the offer of greenhouse products has temporarily decreased.

Now smooth greenhouse cucumbers are worth UAH 20–30/kg, bulbous — UAH 40–45/kg. Cucumbers in the open ground rose in price to UAH 18–22/kg.

Farmers are concerned not only with price, but also with storage

Excess produce can be a particular problem for those farms that plan not to sell vegetables immediately after harvest.

Wartime storage comes with additional risks. Farmers have to consider possible shelling, power outages and storage costs.

Therefore, it becomes more difficult to predict the profit in advance: the farmer does not know how much produce will be saved, how much it will cost to store it, and what the price will be at the time of sale.

Growing a crop can be easier than selling it

Market experts warn that the current season can become a kind of turning point for vegetable growers.

An increase in production without a corresponding increase in demand can lead to a further decrease in the price of products. In such a situation, the main task of the farmer is not the maximum harvest, but the search for a guaranteed sales channel.

Questions become especially important when to sell products, to whom to sell them and whether the final price will cover the costs of cultivation, storage and logistics.

If the supply of vegetables continues to grow, Ukrainian consumers may receive even lower prices, while the season may turn out to be significantly less profitable for producers.