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Profitable and growing market of champignons

Existing deficit of champignons on Ukrainian market has led to filling the market with import production at lower prices than local producers could offer. In January - February 2010 a supply of live champignons reduced significantly by 40-50% comparing to similar period 2008. Local producers could not fill the market due to sharp frost.

Some local producers that were able to keep production earned good profits on existing deficit. The wholesales prices have doubled up to 3.5 USD per kilo culminating in increasing of profitability from 10% to 150%. Even high profits did not allow meeting the demand in full. The main reason is freezing of the most part of soil.

To fulfill the gap decided foreign producers, which similarly suffered from cold weather but have seen bigger opportunities and chances to earn higher margins in Ukraine than in local country. Shells of supermarkets were attacked by Polish champignons. The share of Polish products is permanently increasing.

Ukrainian growing and developing mushroom market is still attracting new foreign players from Europe. To compare market figures Ukrainians consume an average 1.1 kilo per year, Americans – 2.2 kilo per year, Britain – 2.7 kilo per year, France 3.1 kilo per year, China – 5 kilo per year.

This evidences to expect further expansion of both local and foreign producers and increase the champignons supply in Ukraine because current supply cover only 50% of existing demand. Local production shows year to year growth by 50%. Even in difficult 2009 year Ukraine produced 15% more comparing to 2008 year. Experts forecast double growth of local production in 2010.

Concerning prices they will come back to previous level. If February retail prices achieved 4.75 USD per kilo that current prices keep 3.5 USD. So summer prices will back to its level down to 2.5 USD per kilo.

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