March 7 2012, 11:06 Fruit-Inform

Ukrainian farmers not able to reach agreement with processors

According to Fruit-Inform, Ukrainian processing enterprises do not hurry to conclude contracts of raw material supply with farmers. Processors complain of high stocks of unsold canned products. In connection with this, many enterprises have not managed to repay bank credits; therefore, some canning factories (first of all, those having export access) will most likely have to reduce processed volumes of some vegetables.

Ukrainian farmers are very anxious about such statements, especially producers of field-grown cucumbers and tomatoes, as canning factories are one of the main target markets for their produce. Producers also report of cooperation with processing enterprises becoming more and more difficult from year to year: factories often fail to comply with raw produce purchase obligations. Moreover, some enterprises have not paid for last season's deliveries. At the same time, farmers understand that to plan cucumber and tomato growing business is rather risky without any contracts with the processing industry.

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