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Ukrainian onion in exchange for Russian carrot
Ukraine
Wednesday 12 September 2007
The representatives of the wholesale companies of Russian Federation inform the specialists of CIS produce business periodical, "Agrooglyad: Vegetables and Fruits" weekly, despite of the producers' forecasts of the increased yield of onion there are insufficient supplies of the national products entering the markets of Russia. Onion of small size and medium quality represents the most part of products supplied to markets.
There are almost no locally produced onions in some regions of Russian Federation. Most part of onion is supplied from Volgogradskaya and Rostovskaya regions, which vegetable farms specialize on onion production. The sales prices are set within the limits US$0.31-0.35/kg; one can purchase large volumes of quality onion for US$0.19-0.23/kg in Ukraine. And, the specialists highly estimate the quality parameters of Ukrainian onion.
According to information provided by the representatives of Russian wholesale companies, most of them prefer buying onion in Ukraine because of its relatively low price and satisfactory quality. The other important factor, which supports onion imports from Ukraine, is the opportunity of carrot exports from Russia to Ukraine. Low-level yield of carrot is expected in Ukraine because of droughty and hot weather in spring-summer period. So, the wholesalers are able to more effectively allot transportation expenses and to make money on both imports and exports. Also, we have already informed that the price difference let the wholesalers supply cabbage and potato to Ukraine.
The exporting companies mention the tentative prices for carrot including the transportation cost to Ukraine - they fluctuate US$0.38-0.46/kg. At the same time, the supplies of Ukrainian carrot enter the inner market for the price US$0.4-0.7/kg.
There are almost no locally produced onions in some regions of Russian Federation. Most part of onion is supplied from Volgogradskaya and Rostovskaya regions, which vegetable farms specialize on onion production. The sales prices are set within the limits US$0.31-0.35/kg; one can purchase large volumes of quality onion for US$0.19-0.23/kg in Ukraine. And, the specialists highly estimate the quality parameters of Ukrainian onion.
According to information provided by the representatives of Russian wholesale companies, most of them prefer buying onion in Ukraine because of its relatively low price and satisfactory quality. The other important factor, which supports onion imports from Ukraine, is the opportunity of carrot exports from Russia to Ukraine. Low-level yield of carrot is expected in Ukraine because of droughty and hot weather in spring-summer period. So, the wholesalers are able to more effectively allot transportation expenses and to make money on both imports and exports. Also, we have already informed that the price difference let the wholesalers supply cabbage and potato to Ukraine.
The exporting companies mention the tentative prices for carrot including the transportation cost to Ukraine - they fluctuate US$0.38-0.46/kg. At the same time, the supplies of Ukrainian carrot enter the inner market for the price US$0.4-0.7/kg.
