Despite the fact that Ukraine has been suffering from a war with Russia since February 24, the country's potato sector managed to export a record amount of potatoes in the first six months of this year. That is special. The reason for this lies, among other things, in the poor state of the potato sector in the country.
Given the movements on the European potato market, it is not surprising that the export level of Ukrainian potatoes is 3,8 times higher than the five-year average. But for a country affected by war it is at least special. What are the causes for this?
Heavy loss making
In the first six months of 2023, Ukraine exported 19.800 tons of ware potatoes, news site East-Fruit reports. The last time more than 10.000 tons of potatoes were exported was ten years ago, when it was 14.700 tons. The average sales price of the exported potatoes was $0,16 per kilo, equivalent to €15 per 100 kilos. That is the wholesale price for sorted product, so the price the grower receives is still a few cents below that. So heavily loss-making.
Even more striking is that more than 90% of this volume was exported to just one country: Moldova. This country is almost the only export destination that is willing to settle for the low quality of Ukrainian potatoes. Often the right (professional) varieties are not grown, the peel quality is poor and storing potatoes is very difficult. Growers cannot control this, so they continue to make losses on cultivation.
6,2 million refugees
Another problem that growers face are the consequences of the war. For example, infrastructure on and around farms has been damaged, making storage and transport even more difficult, and internal consumption has declined as an estimated 6,2 million people have left the country. Professionalizing cultivation is not easy when no money is being made, there is little demand and your storage shed is being destroyed by bombs.
Ironically, Ukraine imports a relatively large number of onions from Uzbekistan. That country is the largest importer of table potatoes in the world. Yet the Ukrainians export zero tons of potatoes to the country. Apart from the logistical challenges, because exports now have to bypass Russia, the Uzbeks are not interested in inferior potato quality.