Potato market problems in the Donetsk People's Republic: import dependence and spontaneous pricing

Abstract

The article is devoted to the analysis of the potato market in the Donetsk People’s Republic (DPR) in the absence of official statistics, taking into account modern economic realities and political circumstances. The potato market in the DPR is facing serious problems – high dependence on imports and price instability, although there are positive trends in potato production and consumption. The study shows that the share of own potato production in the provision of the DPR (only agricultural enterprises and individual entrepreneurs - FLP) is about 1-2%. It has been established that domestic potato consumption is provided almost entirely by imports (98-99%), and there is a very high dependence on potato imports. The sown area of potatoes in agricultural enterprises and individual entrepreneurs increased by more than 20% in 2015-2018. The yield of potatoes on irrigated lands is more than 2 times higher than the yield of potatoes on lands without irrigation. The average price of potatoes in the DPR is generally lower than in the neighboring Rostov region – by 2-15%. As a conclusion, the adoption of measures aimed at reducing dependence on the external import of potatoes and ensuring market pricing mechanisms for potatoes in the long term is justified.