According to EastFruit analysts, there are many participants of the Ukrainian fruit and vegetable market willing to earn a lot of money quickly by storing table beets in the fall of 2021. They say that the return on investments in beets can be more than 500% on an annualized basis in the worst case scenario.
The business idea is pretty simple. First you need to buy table beets during harvesting, having previously rented a suitable storage. Then you store the beets and wait until their prices start to rise. Many traders expect them to rise by at least 3 times by the spring of 2022.
The belief in a sharp rise in prices for table beets is based on the experience of last year, when they were purchased at 2.5-3.0 UAH/kg ($0.10-0.12) during harvesting and sold at 9-11 UAH/kg ($0.35-0.42) in spring. In other words, the prices for beets have increased 4 times on average during the storage period! Since the conditions for growing beets were bad in some regions in 2021, many market participants believe that prices will rise even more.
However, wholesale prices for table beets in most regions of Ukraine are now already twice the price level of 2020. Moreover, they have not changed for several weeks and it is almost impossible to buy beets at less than 6 UAH/kg ($0.23). Accordingly, in order to receive the same return on investment, beets must be sold in bulk by spring at UAH 24/kg ($0.92 per kg). Although this scenario is possible in theory, it is not very likely.
Will those who store beets manage to hit the jackpot in 2021? Nobody knows the answer, but Fruit-Inform analysts that conduct the “Forecast of production and prices for fruit and vegetables in Ukraine” annually know how likely this is to happen. They will also share the research results on December 3, 2021 in Kyiv at the 17th international conference “Fruits and Vegetables of Ukraine 2021. New Investment Opportunities” within the framework of #FTradeClub. Registration applications are accepted here. The event is supported by the Ukrainian Horticultural Association, the European Bank for Reconstruction and Development (EBRD) and FAO.
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