Information for fruit and vegetables business in CIS
Ukrainian grape market able to develop only in cooperative system
Many Ukrainian experts believe that the Ukrainian grape market's main problems are lack of supply, poorly developed post harvest handling and logistics system. According to them, those problems can be solved only by joining farmers' efforts.
“To ensure weekly shipments of at least 20 tonnes of grapes, a grape project must have no less than 10 hectares, large skilled staff and streamlined logistics that involves huge investments. At the same time, farmers do not have much funds to invest, while Ukrainian crediting conditions are rather bad. In such a way, I see the only prospect of the grape market development in consolidation of several farms' efforts. This is the way how we will be able both to ensure volumes and organize developed logistics and post harvest handling”, Mr. Ivan Zakharenko, Head of Vinogradar Zaporozhya Cooperative, comments. “However, creating cooperatives is not an easy task in Ukraine. And, strange to say, the main problem is not legislation, but farmers' incomprehension of necessity in joining efforts”, he adds.
For the present, retail chains prefer imported grapes even when prices of Ukrainian produce are more attractive.
“Imported grapes account for the share of no less than 50-70% in our sales structure. We have nothing against business with domestic producers, but Ukrainian grapes' average shelf life does not exceed two days, while imported produce can be sold over a week and more. In addition, imported grapes are always packed that is a rare fact for domestic produce”, Mrs. Olga Ruban, Head of Fruit and Vegetable Department of Eko-Market supermarket chain, says.
According to Fruit-Inform, current prices of high-quality domestic grapes vary between UAH 11-15/kg (EUR 1.10-1.50/kg). At the same time, supermarkets purchase imported produce at UAH 13-15/kg (EUR 1.30-1.50/kg).
We would remind you that more information about current developments and future prospects in the Ukrainian and Russian fruit and vegetable markets is available for subscribers of Fruit-Inform Weekly service package.