Information for fruit and vegetables business in CIS
Ukrainian vegetable production may reach record low in 2015
Fruit-Inform analysts expect the Ukrainian commercial vegetable production to be one of the lowest over the past 5-7 years in 2015, according to the results of the fundamental study «Fruit & Vegetable Market of Ukraine-2015: Results and Forecasts for the Next Season».
Lower commercial production will be connected with a decrease in production areas due to multiple growth in costs of resources for sowing campaign and further treatment procedures. Moreover, credit resources are unaffordable for the majority of Ukrainian vegetable farms, which are also most often unable to fully conduct sowing campaign with the use of their own funds.
Growers also do not risk planting vegetables at the previous year's levels as they are seriously concerned about their sales possibilities in 2015. Due to the ban on imports introduced by Russia and expectations of a fall in internal consumption, Ukrainian canneries were forced to reduce their processing volumes in 2015. This will significantly affect growers of seasonal vegetables, who had long experience of concluding contracts with processors. Russia's embargo has also resulted in a decrease in areas under Ukrainian greenhouses, which have previously exported a significant part of their outputs.
According to the market experts, a decrease in production areas will not be the only reason for a fall in production: forced saving on resources will result in lower yields of vegetable crops. Farmers have been actively switching over to inexpensive varieties, and the vast majority of growers plan to save on preventive treatment of plantations.
At the same time, Fruit-Inform analysts expect an increase in uncommercial areas under potatoes and some vegetables (grown by households).
We would remind you that Ukraine has harvested 9.2 mln tons of field-grown vegetables and 480,000 tons of greenhouse ones in 2014. Production of field-grown vegetables has grown by 3% year-on-year thanks to higher yields. At the same time, production of greenhouse ones has fallen by 5% due to reduced ares and yields.
How will the Ukrainian fruit, vegetable and berry production structure change in 2015? What fresh produce segments will see a rise in uncommercial production, and will it be able to compensate a decrease in commercial farms' areas? Will exports play their part in pricing in the internal market, and what sectors will face an increase in imports? These and many other questions are answered in the fundamental study «Fruit & Vegetable Market of Ukraine-2015: Results and Forecasts for the Next Season».
To learn more about the study, please contact International Relations Department of Fruit-Inform:
tel: +380 562 320795 (ext. - 341)
cell: +380 96 5836323 (Ievgen Kuzin)
e-mail: [email protected]