Russians set to experience decrease in potato costs
Alright, let's chat about the potato situation in Russia, shall we? You know, the humble spud that costs a pretty penny in the land of the bears. Why so pricey? Simple - it's mainly imported from Egypt and Azerbaijan, and our homegrown production took a hit last year due to inclement weather.
Now, here's the good news - Alexander Panchenko, a bigwig in Agro and Food Communications, predicts things will change come mid-May. Why? The old crop will go on sale, and the potato prices will start to tumble by about 10-15%.
However, don't gets your hopes too high. Panchenko points out that while the price drop is on the horizon, it won't be a significant one. That's because the costs of fertilizers, fuel, and logistics keep soaring.
Now, you might be wondering, why imported potatoes always have a higher price tag? Well, it's all about weather conditions, man. Potatoes are grown in Azerbaijan and Egypt earlier in the season, which makes them more expensive. Here's the cherry on top - domestic potatoes will soon flood the markets!
In the past, Professor Vyacheslav Cheglov, an economist, noted that spring sees potatoes getting pricier in Russian stores due to high storage costs and network markups. And you've probably heard about the predicted price hike in May.
So, while mid-May might not be the magic date for the price drop, you can expect see prices coming down around July. The reasoning behind this? Increased domestic production and less reliance on imported potatoes, which can be costly. But, if you're worried about rising costs of production, fear not, government regulations are being discussed that could help balance things out or maybe even reduce potato prices.
Got it? Thought so. Cheers to cheaper potatoes, folks!
- Alexander Panchenko, a prominent figure in Agro and Food Communications, forecasts a decrease in potato prices by approximately 10-15% starting mid-May, due to the sale of the old crop.
- Panchenko warns, however, that while a price drop is imminent, it won't be substantial because the costs of fertilizers, fuel, and logistics continue to rise.
- Professor Vyacheslav Cheglov, an economist, has previously pointed out that higher storage costs and network markups contribute to springtime potato price increases in Russian stores, including the anticipated price hike in May.
- The price decrease may not occur until around July, but it is expected due to increased domestic production and less dependence on costly imported potatoes.
- Government regulations regarding potato production costs are being discussed, aiming to maintain or even lower prices, providing possible relief to consumers.
