July 26 2011, 11:09 Fruit-Inform

Ukraine experiencing sharp expansion of fruit and vegetable storage capacities

According to Fruit-Inform Project, the record number of modern fruit and vegetable storehouses will be put into operation in Ukraine in 2011. The main reason for more active investments in construction of fruit, vegetable and potato storehouses were high prices for fruits and vegetables in 2010-2011. This fact was erroneously connected with shortage of storage capacities by many experts. At the same time, high prices enabled professional producers to accumulate serious investment resources which they invested mainly in storage and post-harvesting facilities.

New storehouses were actively constructed also by companies which only wanted to start the fruit and vegetable business and were previously engaged in trading. They think that they can purchase cheap produce from producers, and then make a profit from re-sales in winter and spring.

“We should keep in mind that expansion of vegetable and potato storage capacities leads to increase in the demand for produce and decrease of its supply during harvesting, and sharply reduces a pressure on prices at this period of time”, Tetiana Getman, Head of Fruit-Inform Project, states. “Therefore expansion of vegetable storage capacities leads to leveling of fluctuations of late vegetable and potato prices and reduces probable profits from storage. In addition, every second-third year vegetables do not increase in price during storage at all”, Mrs. Getman adds.

In such a way, Fruit-Inform Project forecasts that in the season 2011/12 many traders trying to store vegetables may suffer serious losses. Many companies are already showing an active interest to the Russian market understanding a danger of oversupply of fruits and vegetables in the market in the new season.

We would remind you that a unique opportunity to meet with major Russian purchasers of fruits and vegetables and get detailed information about development prospects in the Russian market is provided at the Fourth International Conference “Fruit & Vegetable Business of Russia – 2011” which will take place in conjunction with World Food Moscow, September 14, 2011. Registration of the conference participants is currently in active progress.