Information for fruit and vegetables business in CIS
Donetsk businessmen want to compete with Sandora and Chumak for Kherson tomatoes
The representatives of Donetsk business purchased an old not working winery in Kherson and invested money to restructure it into tomato processing enterprise. The farmers-tomato producers in Kherson oblast informed Agricultural Marketing Project (AMP) about it.
According to information provided by the farmers large investments are made into the former winery, and the modern Italian equipment is purchased. The enterprise is expected to process about 20,000 tons of tomatoes per year. This figure approximately corresponds to the capacity of "Sandora" company plant purchased this year in the village Kazachi Lagerya, Tsuryupinsk rayon, Kherson oblast. Two enterprises of "Chumak" company which are also located in Kherson oblasts usually process about 40-45,000 tons of tomatoes per year. As the farmers informed, a new enterprise will produce tomato paste, and, possibly, other commodities of tomato group; it is going to enter the market under its own trademark.
The growth of competition for tomatoes in Kherson oblast was not a surprise for major analysts of fruit and vegetable market; Kherson oblast produce one quarter of total tomato yield in Ukraine using the newest technologies, which ensure low self-cost of the produced high-quality commodities. Moreover, according to AMP information two more companies start to process tomatoes in Kherson oblast this year, increasing tomato demand in this region for another 100,000 tons.
So the next year competition for tomatoes in Kherson oblast promises to be the most severe comparing with the recent years; and a farmer will benefit in the long run. In fact during one year the tomato demand for processing needs in the oblast has increased more than twice; it is 36% of tomato production in 2003 only on the mentioned enterprises, according to the data of the official statistics. At the same time cannery enterprises in other regions which earlier purchased tomatoes in Kherson oblast, should think right now about the development of raw material zones close to the enterprises, cause next year they can simply face the lack of tomatoes.
The problems and potential development of raw material zones as well as state of processing market will be discussed on the first international conference "Vegetables and Fruits: Market of New Alternatives" to be held in Kyiv on the 2nd-3rd of November.