Information for fruit and vegetables business in CIS
Collapse in Ukrainian market for pickles
A number of sellers of pickles has grown several times in Ukraine in the past season with the most booming growth rates registered in the artisan segment. By means of pickling, farmers hoped to sell a surplus of harvested fresh vegetables. However, such a policy resulted in the price collapse and large stocks of unsold short-life products.
“Currently, pickling industry is very interesting for many Ukrainian companies. At the same time, unfortunately, only few of them can adequately assess all risks associated with this business”, Mrs. Natalya Postilnyak, Marketing Director of Olvita OOO, said at the 4th International Conference “Potatoes and Vegetables of Ukraine – 2012”. “In addition to all manufacturing and logistics costs, a manufacturer runs all risks connected with write-off and disposal of unsold goods”, she added.
Many companies having no experience in pickling business often make a lot of mistakes, especially when working with supermarkets.
“The most widespread mistake (especially in this season) is when a manufacturer starts selling his produce at prices as low as possible and hopes to increase them in future. However, such plans do not work in the real world. As a rule, a supermarket immediately announces a new tender”, Mrs. Postilnyak was quoted as saying.
We would remind you that more detailed information about Ukrainian and Russian fruit and vegetable markets is available for subscribers of Fruit-Inform Weekly service package.