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Potato shortage and rising prices: social challenges and economic prospects

Potato shortage is pushing up potato prices, definitely.

And the bottom line is that even if it is sown in volumes much larger than last year's, the scale effect on the final price of potatoes will not affect, because only the price of raw materials (seed) has a minimum value of 1.6 BYN($ 0.53) today, which corresponds to a 20% increase in the price of potatoes already grown last year..

If you count money, it's a market approach.

But given the social aspects on the agenda, it seems that there will be a question of how, under such conditions (falling budget revenues), to establish the same valuable parity on it, so that society does not get drunk and the private farmer does not completely bend over (although, as it seems, no one is particularly interested in the latter today doesn't pay attention).

The prospects for rising prices, even for socially important goods, are quite high, especially in the context of falling oil revenues, since there will be nothing much to redistribute.

Gradually, the market will come out on top if the issue becomes making money, and not just getting it from hydrocarbons.

автор - Михаленко Р.
M R. Автор - kaktotak.by Specialization: financial and economic design - modeling of business, investment projects of the real sector, analysis and evaluation of efficiency, optimization of the management decision system.

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