Information for fruit and vegetables business in CIS
Fruits and berries yield the best profit
During the work of first international conference "Vegetables and Fruits of Ukraine: the Market of New Opportunities" many experts were united to think that one of the most prospective and profitable businesses in Ukraine would be the production and sales of fruits and berries in some next years. It was also mentioned that in line with price growth for fuel the raw materials zones could be contracted. It will press the producers to start growing fruits and berries in direct proximity to the main consumption centers.
If we consider the situation in Ukraine during the recent 5 years, we can see that fruits and berries production is concentrated just near the main consumption centers, i.e. the production leaders are Dnepropetrovsk, Donetsk oblasts and AR Crimea, according to official statistics data. The least amount of fruits was produced in Sumy, Ternopil and Kharkiv oblasts.
However, if we analyze the fruits and berries production per one inhabitant of the region, we will see that the greatest amount is produced in Kherson, Zakarpattya oblasts and AR Crimea. Dnepropetrovsk, Vinnitsa and Khmelnitskiy oblasts may also be referred to as leading producers of the mentioned commodities. The lowest rate of production per one inhabitant is observed in Sumy, Kyiv, Ternopil and Kharkiv oblasts.
If we try to define the general overproduction or shortage for fruits and berries on the regional markets, we will see that the greatest market for these commodities is Kyiv oblast and Kyiv city. Some sufficiently lesser but still large amounts of fruits and berries are supplied to Kharkiv, Sumy and Poltava oblasts. The most evident overproduction of fruits and berries is observed in Dnepropetrovsk, Kherson oblasts and AR Crimea.
So the conclusion can be made that the establishment of orchards and berry-fields will be the opportunity to start a profitable business in the oblasts where the shortage for these commodities is observed or in the regions close to them. The quickest cost recovery of fruit and vegetable production business is possible in Kyiv, Poltava and Cherkasy oblasts, as well as in a southern part of Sumy oblast.
According to the specialists' evaluation, the profit per one hectare of the intensive apple orchard may reach USD $ 30-35,000 per year (for comparison - one hectare of grain crops renders a profit of not more than USD $ 350-550). Still the rates of orchards establishment remain slow because of nonavailability of the long-term loans in Ukraine and absence of land market in Ukraine; meanwhile the orchard would yield a profit only in a 3-5 years since the establishment.