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Another disappointment for Russian vegetable producers

Russian vegetable producers are not only disappointed with the current situation in the onion market, but now they are also concerned by the trends in the cabbage segment, EastFruit reports. Most producers today are still unable to sell off last year’s cabbage stocks, and the price of 2020 harvest has remained consistently low over the past two months.

At the moment, prices for last year’s cabbage are ranging  from10 to16 rubles/kg ($0.13-0.21/kg), but real transactions are not higher than 12-13 rubles/kg ($0.16-0.17/kg) in the southern and central regions of the country. The difficult situation in the cabbage segment is also observed in the Republic of Dagestan, which is its main exporter to the central regions of the Russian Federation. Today, Dagestani producer offer cabbage at 5 rubles/kg ($0.07/kg) and even in this case the demand is closed to zero.

Many Russian producers are now wondering whether it is worth planting early cabbage while there are large stocks of last year’s unsold product and imports are also high. Early cabbage produced in Uzbekistan and Kazakhstan is now exported to the Russian Federation in large volumes regularly. Prices for early imported cabbage in Moscow are ranging from 22 to 28 rubles/kg ($0.29-0.37/kg) in large wholesale. Cabbage from Iran is offered at a slightly higher price – 30-34 rubles/kg ($0.39-0.44/kg).

Usually, farmers from the southern regions are the first to hit the market with early products in Russia, and they will have to start the season much later than in 2020 due to unfavorable weather conditions this year. The prices for the first batches of early cabbage started from 40 rubles/kg ($0.53/kg) last year. However, producers will have to set prices at around 18 rubles/kg (0.24/kg) this year in order to compete with imported products. According to most of the key market players, such price is unprofitable for them, and many Russian producers are already stating that they will either reduce the early vegetables plantations, or completely abandon their production this season.


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