W11 Potato Update: Ukrainian Potato Prices Soar as Shortage Hits Market, Egypt Achieved Record Potato Exports in 2023

Published Mar 21, 2024

In W11 in the potato landscape, the Ukrainian market faced a shortage of high-quality potatoes, leading to a 14% WoW increase in premium potato prices due to limited availability and rising demand. Additionally, disruptions at the Ukrainian-Polish border are expected to affect early vegetable prices, including vegetables from Egypt and Israel, which may see price hikes due to security concerns in the Black Sea region. Meanwhile, Egypt celebrates surpassing 1 mmt of potato exports in 2023. Lastly, Portugal emerges as Spain's second-largest supplier of fruits and vegetables, with significant increases in both volume and value of imports over the past five years.

Ukrainian Potato Prices Surge 14% WoW in W11 Amid Supply Shortage

The Ukrainian potato market has a shortage of high-quality produce, posing challenges for wholesalers and retailers in securing suitable supplies. This scarcity has allowed farmers to increase prices for premium-quality potatoes, which ranged from USD 0.42 to 0.60 per kilogram (UAH 16 to 23/kg) in W11, reflecting a 14% week-over-week (WoW) increase. The price hike is due to the limited availability of high-quality potatoes and rising demand. Additionally, farmers may charge higher prices for lower-quality potatoes due to the prevailing conditions. The average potato price in Ukraine has surged to 2.8 times higher than in Mar-23, indicating significant inflation. Market analysts anticipate further price increases due to the diminishing potato supply.

Border Blockage Expected to Impact Prices of Early Vegetables in Ukraine

The blockage at the Ukrainian-Polish border is expected to affect the prices of early vegetables, especially those imported from Europe. Moreover, vegetables from Egypt and Israel may see price hikes due to security concerns in the Black Sea region. Economic experts predict that new potatoes from Egypt and tomatoes from Israel, typically transported by sea to Ukraine, will face higher costs and reduced availability this year. This border blockade will worsen the situation, resulting in overall higher prices for early vegetables.

Egypt Sets Deadline for Potato Exports to Lebanon Due to Decreasing Market Supply

Egypt's Agricultural Crops Export Council (AEC) has issued a circular to its members regarding the last date for exporting potatoes to Lebanese markets. The circular states that March 23, 2024, will be the final day for exporting fresh potatoes from Egypt to Lebanon due to declining potato quantities in Lebanese markets. The Central Administration of Agricultural Quarantine has instructed that the last date for inspection and sampling at sorting and packing stations be March 15, 2024.

Egypt's Potato Exports Surpassed 1 MMT in 2023, Sets Record

Egypt's Minister of Agriculture highlighted the significant growth in the country's potato exports, which exceeded 1 million metric tons (mmt) in 2023, setting a record and ranking second after citrus fruits. This achievement was due to the collaborative efforts of entities, including the Ministry of Agriculture, the Ministry of Commerce and Industry, Egyptian embassies abroad, and the Export Council for Agricultural Crops. The Minister acknowledged the crucial role of Egyptian farmers and exporters in this success and commended the efforts of the Egyptian Agricultural Quarantine in ensuring quality standards. Additionally, there was an emphasis on prioritizing industrial potato production to expand agricultural manufacturing, generate employment opportunities, and minimize loss and waste.

Portugal Becomes Second-Largest Supplier of Fruits and Vegetables to Spain

Over the past five years, Portugal emerged as the second-largest supplier of fruits and vegetables to the Spanish market, following France. Data from the Customs Department revealed a significant increase in both volume and value of Spanish imports from Portugal during this period. In terms of value, imports reached USD 390.65 million, marking an 84% increase, while the volume surged to 340,007 metric tons (mt), representing a 9% growth. Regarding vegetables, Spanish imports from Portugal experienced a notable rise of 103% between 2019 and 2023, amounting to USD 173.86 million. Among the top imported Portuguese products are potatoes, valued at USD 22.82 million (a 63% increase). In terms of volume, Spanish imports from Portugal increased by 19% to 200,413 mt, with potatoes at 53,749 mt (an 18% increase).