April 22 2011, 16:00 Fruit-Inform

Increase of canned fruit and vegetable production expected in Ukraine

For the present, Ukrainian processors can not define accurate production plans for the new season. This is a result of absolute vagueness present in the market for raw produce. In respect of this, last year had an unpleasant surprise for enterprises as they spent considerable funds for purchase of raw produce, whereas growth of prices for finished products was being compensated by high level of competitiveness in the internal and external markets. At the same time, more than a half of enterprises surveyed by Fruit-Inform Project expressed their readiness to increase volumes of processed vegetables by 15-25%. Fruit and berry processors plan even more ambitiously, and we expect volumes of processed fruits to increase by 50% and more. However, these plans can be implemented only on condition that prices for raw produce will be relatively low.

Now canning factories are actively engaged in concluding contracts with farmers, as, according to our survey, only a little number of enterprises dispose of their own raw produce base. It is also interesting that about 60% of surveyed enterprises prefer not to work on the contract basis with fresh fruit and vegetable producers, but to purchase in the “real market”, i.e. during mass harvesting in farms.

What price situation should be expected for different categories of fruits, berries, and vegetables? What factors will have the most significant influence on the market for fresh produce? These and many other questions will be answered in the fundamental study “Fruit and Vegetable Market of Ukraine-2011: Fundamental Investigation of the Season's Results and Forecasts for the Following Season”, which will be fully completed already in the first half of May.