White cabbage prices in a dynamic trend in Poland

2021-02-12 11:09

An upward trend in the prices of white cabbage, which began in mid-January in the Polish large wholesalers, but was very rachitic, has gained strength and vigor in recent days. White cabbage prices have started to rise dynamically. Currently, the most common wholesale prices are between 0.50 and 1.00 PLN/kg. Prices at the upper end of the range, those of good-quality market cabbage, have increased in particular.

Our chart above shows that the average cabbage price has clearly risen above the level typical for this vegetable and the January-February period. We are getting closer and closer to the price levels of early 2016.

The question is on what and how strong a basis the current price increase in the Polish cabbage market is based. As it seems, the main factor here is the weather, whose influence on the demand-supply situation is manifold.

First of all, winter makes logistics, including international logistics, more difficult. This means less pressure on cabbage imported from Germany or the Netherlands. In any case, prices there have also gone up, which affects the competitiveness of that cabbage. Cabbage is also growing more expensive across our eastern border, due to the decline in supply of this vegetable on the Ukrainian, Belarusian and Russian markets.

Demand also seems to have improved. Winter is conducive to higher consumption of many domestic vegetables in households. White cabbage is in this group. If catering was still in operation, the dynamics of the price increase would be even greater.

But winter will eventually let up. What then? The end of the upward trend, or perhaps a downward correction? It seems that the important question here is how long this cold winter will last. If it lasts long enough, cabbage stocks will fall significantly. Cabbage stored in unsuitable warehouses will not reach the market. This is a huge problem especially in the east - Russia and Ukraine will soon have to start importing heavily. So unless a thaw comes quickly, white cabbage prices will continue their long-term upward trend.

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