Ukraine plans to send up to 60% of potato harvest for processing

This opinion was expressed by Natalia Kravtsova, President of the Ukrainian Association of Potato Producers (UAPP), UkrAgroConsult reports.

She noted that traditionally, the Ukrainian potato market has focused on selling raw potatoes without further processing. Seasonality and the lack of long-term contracts significantly affect price formation and producers’ profitability. Thus, during the season, prices for bulk potatoes and for washed and packaged potatoes sold through retail chains may differ by 2–3 times. At the same time, the insufficient development of the deep-processing industry makes Ukraine dependent on imports of finished products.

That is why the UAPP is encouraging the development of industrial processing — a full-fledged production segment for high-value-added products such as French fries, potato flakes and puree, starch, and snack products — with a target of processing 30–60% of the harvest.

«Our strategic objective is to ensure market stability. Therefore, the association is facilitating a transition to long-term contracts between producers and processors. We will also strengthen the role of small and medium-sized producers so that they become part of production chains», the UAPP president explained.

Natalia Kravtsova emphasizes that the association is already aligning processes with EU standards: quality, traceability, and product safety standards are being introduced in accordance with the requirements of the European market. At present, a number of investment projects are already being developed under the new model.

Experts say that a systemic processing market will be able to serve both domestic demand and export markets. According to UAPP estimates, in the medium term Ukraine is expected to increase exports to the EU, the Middle East, and Asia, while also creating new industrial clusters based on agro-processing with higher product margins.