Poland’s blockage of Ukraine’s boarder raised prices of ware potatoes in Moldova

After a four-week period of price stability, potato prices began to rise in Moldova last week, according to EastFruit price monitoring. The average wholesale price for fresh ware potatoes increased by 17%, to 7 lei/kg, which is equivalent to US $0.39/kg. Potatoes of higher quality are offered in bulk at a price of at least 8 lei/kg (US $0.44/kg). This means that the price of potatoes in local currency was close to the price level for it in mid-November of 2022 and in dollar terms it exceeded the specified level. In general, the price of potatoes in Moldova has returned to its maximum December level in the recent five years. Also, it looks like potatoes are more expensive in Moldova than in any other country included in the weekly EastFruit price monitoring.

In early December, market operators predicted a gradual increase in potato prices, taking into account the relatively low production in 2023 and the reduction in stocks of low- and medium-quality products in storage facilities of growers. However, as EastFruit previously noted that at the end of November – beginning of December, the process price increase in Moldova was restrained by imports of Belarusian potatoes and carrots at rather low prices.

However, due blockage of border crossings for cargo between Poland and Ukraine organized by Poland, the logistics of supplying Belarusian goods to the Moldovan market became significantly more complicated and almost doubled in price. As a result, Belarusian potato supplies dried out and price of such product went up to match that of locally grown potatoes. Considering the high probability of continued problems with imports of Belarusian potatoes and a reduction in the supply of high-quality Moldovan potatoes, the process of further rise in prices will most likely continue at least until the end of 2023.

According to EastFruit analysts, if the wholesale price of potatoes in Moldova approaches the level of 9 lei/kg ($0.5/kg), and potatoes do not rise in price in Ukraine, then supplies to the Moldovan market from the western regions of Ukraine will become quite profitable.