January 17 2012, 14:48 Fruit-Inform

Lower number of intermediaries in Ukrainian fresh produce business

According to Fruit-Inform, in this season farmers prefer a direct work with retail chains without having business with produce intermediaries represented by wholesale companies. According to producers, vegetable sales to intermediaries lose their significance due to wholesalers offering very low purchasing prices, which are considerably lower than supermarkets' ones.

For example, wholesale companies agree to purchase white cabbages at no higher than UAH 0.25-0.30/kg (EUR 0.02-0.03/kg), while high-quality cabbages can be sold to retail chains at UAH 0.55-0.65/kg (EUR 0.05-0.06/kg). Wholesalers are ready to purchase onions at UAH 0.30-0.40/kg (EUR 0.03-0.04/kg), potatoes – at UAH 0.70-1.00/kg (EUR 0.07-0.10/kg), red beets – at UAH 0.70-0.90/kg (EUR 0.07-0.09/kg), carrots – at no higher than UAH 1.00/kg (EUR 0.10/kg). At the same time, supermarkets agree to purchase high-quality graded onions at 1.20-1.40/kg (EUR 0.12-0.14/kg), potatoes – at UAH 1.30-1.40/kg (EUR 0.13-0.14/kg), red beets – at UAH 1.00-1.20/kg (EUR 0.10-0.12/kg), carrots – at UAH 1.30-1.50/kg (EUR 0.13-0.15/kg).

More detailed information about current developments in the Ukrainian and Russian fruit and vegetable markets is available for subscribers of Fruit-Inform Weekly service package.

What sales channels will be the most profitable for Ukrainian farmers in new season? This and many other questions will be answered at the 4th International Conference “Potatoes and Vegetables of Ukraine – 2012”, President Hotel, Kiev, Ukraine, February 16-17, 2012. The event is supported by Ukrainian Association of Potato Producers and Ukrainian Association of Wholesale Markets and will be attended by the biggest vegetable and potato producers, suppliers of seeds, machinery, equipment, the largest purchasers of produce and companies interested in investing in the Ukrainian vegetable and potato business. To join them, please, fill out an application form.