November 20 2014, 11:34 Fito-Mag

Apple sales go down in Ukraine

The Ukrainian apple market is currently characterized by a decrease in trading rates. Growers say of aggravating situation with sales: as of the mid-November, they face problems with sales even at minimum prices. Apples are now sold to wholesale companies at no higher than UAH 3-4/kg (EUR 0.15-0.20/kg). Many farmers are ready to conclude contracts on those conditions, but a number of buyers does not grow. Contracted volumes of premium-quality apples are shipped to retail chains at no higher than UAH 5.50-6.50/kg (EUR 0.27-0.32/kg), and retailers make regular attempts to reduce purchase prices in view of high competition among growers in the internal market.

In their turn, wholesale buyers often complain about low quality of offered apples. Farms now offer large volumes of produce suffered from scab and hail. Furthermore, farmers started selling apples suffered from October frosts in early November. At the same time, the supply of apples significantly went up this year due to record high production in Ukraine; therefore, buyers often cavil about quality and price.

Farmers with available volumes of high-quality apples do not hurry with sales and prefer to keep their produce in storage until the mid-December. Furthermore, farmers are seriously concerned about trading prospects in December, as the duty on apple imports will be almost abolished on December 1, which will only aggravate the situation with sales.