The unprecedented high cabbage prices recorded in Ukraine last week are now starting to drop, according to "APK-Inform: Vegetables and Fruits".
In the second half of August, cabbage prices doubled, causing a fall in demand for the Ukrainian produce, which in turn has contributed to the downward trend this week. Retailers and dealers were forced to reduce purchases and even remove the produce from the shelves in some cases due to falling sales.
This week, growers in the southern regions have started harvesting medium-late varieties, causing supply to increase; on the background of a very cautious demand, prices have gradually dropped. While cabbage prices a week ago reached 5.5-6.5 UAH/kg (0.25-0.29 $/kg), now the minimum threshold at which wholesalers agree to close the transaction, does not exceed 5.5 UAH/kg (0.25 $/kg). For wholesale operators to boost sales, producers will be forced to further reduce prices.
Despite the apparent decline in cabbage prices in Ukraine, these are actually at the highest levels on record since the country's independence. The last time a record price was recorded was in September 2010, but then cabbages in Ukraine were worth almost 2 times less than today.
Analysts of "APK-Inform: Vegetables and Fruits" believe that the season-2015/16 will be marked by a number of different factors, including a decline in the acreage and yields and a sharp rise in imports.
