Increased exports to Spain and Ukraine cause high prices of Polish tomatoes

According to the Ministry of Agriculture and Rural Development, the price of domestic tomatoes on th…

According to the Ministry of Agriculture and Rural Development, the price of domestic tomatoes on the wholesale markets in July amounted to 4.91 PLN (1.12 EUR) per kilogram, i.e. 83 percent more than last year. A higher price level, since reporting began in 2004, was observed only in 2010, experts of the PKO BP bank said.

In addition, the prices of tomatoes increased in July by as much as 50 percent MoM, which is unusual for July. Cucumber prices also increased strongly - by 66 percent MoM (short cucumbers).

One of the main reasons for rising tomato prices is their large export from Poland, which is reinforced by shortages on the foreign market, including in drought-stricken Spain. According to Eurostat, the export of fresh tomatoes from Spain in May decreased by 26.3 percent, and by 44 percent to Britain alone, which is a major importer of tomatoes from Poland. Total sales of tomatoes from Poland in the first four months of 2019 increased by 6 percent YoY.

What is more, export of Polish tomatoes to Ukraine is growing strongly - in the first five months of 2019 (mainly in May) it increased by as much as 7.7 times. Due to adverse weather conditions (high
spring temperatures, flooding and developing diseases), the yield of tomatoes decreased significantly, and their prices reached a record level in July. A significant decrease in domestic production of ground tomatoes (according to the Central Statistical Office, by over 9 percent YoY) to the lowest level since 2010 is also contributing to the price increases in Poland.