October 8 2004, 09:15 Agrarian Marketing Project

Apples for processing needs are getting more expensive under influence of processors' competition growth

Despite of rather good apple harvest in the current year and large percentage of low-quality apples in it, apple prices for processing needs continue to grow up steadily. This week some processing enterprises offered price of USD $ 0.05-00.8/kg for large apple supplies. Past year major part of apples for processing enterprises was sold for USD $ 0.01-0.02/kg.

Apple price growth for processing needs this season many specialists explain by entrance of some new processing enterprises to Ukrainian market. As a result competition for raw materials has increased much; also the largest national juice and fruit concentrate producers extended their raw materials zone. Still, old apple orchards continue to be liquidated, the rates of new orchards establishment are not fast enough. One more price growth factor is that fruit and vegetable producers are constructing storages by higher rates that let them store commodities for achieving better price.

We should note that further price growth on apple processing market is possible, cause producers of apple concentrate for export can still afford it.