Record Potato Exports for the Ukrainian Farmers

Despite Russian hostility, Ukrainian producers were able to export record amounts of fresh potatoes in the first half of 2023. However, these data point to significant issues with this industry's viability.

According to a recent EastFruit report, Ukraine exported 19,800 tons of commercial potatoes during the first half of 2023. The last time Ukraine exported more than 10,000 tons of potatoes in the first half of the year was in 2013 when shipments totaled 14,700 tons. Additionally, during the first half of 2023, potato exports increased by 2.3 times compared to the same period in 2022 and by 3.8 times compared to the average for the previous five years.

“High potato exports from Ukraine usually coincide with huge problems for growers. The price chart for potatoes in the first half of the year says it all,” the above-mentioned analysts added.

According to the source, the wholesale price of potatoes in Ukraine by the end of March 2023 was just USD0.16 per kg. It is evident to any farmer who has ever grown potatoes that such a low price cannot possibly cover the expenses of growing or even the expenses of premium seed stock. Moreover, Moldova received 91% of Ukraine's record-breaking potato exports.

“In Ukraine, most potato growers do not see the difference between raw materials and finished products. Products dug from the field could get to the store’s shelves without any further cleaning, sorting, sizing, and packaging. At the same time, those who invest in potato post-harvest handling often find that after potatoes look even worse than before. This means we need to start with a complete revisit of approaches to cultivation, as Thomas Carpenter, a potato grower from Ireland, very clearly demonstrated through personal examples at one of our conferences. Alas, the industry’s response to comments regarding product quality is usually completely nonconstructive, and this leads to the fact that for many years in a row, producers continue to fall into the trap of low quality, which makes Ukrainian potatoes ‘unexportable’ Consequently, the absence of export possibilities causes prices to fall below the production cost,” Andriy Yarmak, economist of the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), added in the same respect, cited by EastFruit.

In Ukraine, potato prices are once again at an extremely low level this season. less than it has ever been. Meanwhile, the cost of potatoes is already nearly twice as expensive in Poland as it is in Ukraine. In light of this, Ukrainian potato farmers are forecasting another challenging growing season.