September 1 2011, 14:10 Fruit-Inform

Ukraine's produce intermediaries bankrupt because of wholesale markets

As Fruit-Inform Project is being reported, Ukrainian farmers complain of sharply lower number of small and medium-scale intermediaries in vegetable and potato trade, who usually sold rather considerable part of farmers' produce. Retailers also say of some part of small wholesalers not having their own retail outlets at the markets or other established distribution channels to have stopped business with fruits and vegetables as it is hard for them to compete with producers and big wholesalers at the wholesale markets.

“Besides optimization of fruit and vegetable trade flows thanks to opening of wholesale markets, small inefficient intermediaries are negatively impacted by overall decrease of prices that made trade less profitable and more risky”, Tetiana Getman, Head of Fruit-Inform Project, says. “Moreover, prices for fuel and lubrication materials considerably increased in comparison with 2010 that became an additional factor to have led to lower number of resellers and, as a consequence, decrease in expenditures for delivery of fruits and vegetables to final consumers”, the expert continues.

As of today, according to Fruit-Inform Project's estimates, vegetable and potato prices in Ukraine are the lowest over the past 3 seasons and keep on decreasing. More detailed information about the fresh produce production and price prospects is available in the fundamental study “Fruit and Vegetable Market of Ukraine-2011: Results and Forecasts for the Next Season” which will be updated by October 1, 2011. The study will also be broadened with information about quality of harvested fruits, vegetables and potatoes, prospects of their storage as well as Ukraine's storage capacity dynamics. Traditionally, the forecast will contain the detailed fresh produce production and trade statistics as well as full contact information of Ukraine's fruit and vegetable industry.