Information for fruit and vegetables business in CIS
Production of fruit-and-berry commodities will decrease in Ukraine in 2004
The preliminary statistic data confirms the earlier prognoses of Agricultural Marketing Project (AMP) concerning the possibility of the further decrease of this year fruit and berry production in Ukraine. As to the 1st of November fruits and berries were harvested from the lands on 23% lesser that comparing with the same date in 2003. Despite of the significant growth of the average yield (on 19%) the total harvest remained 8% lesser than in the previous year. The most rapid rates of production decrease are observed in agricultural enterprises.
In this regard the prices on apples, grape and other fruits will probably remain on the higher level comparing to the previous year.
As AMP specialists have already informed, the major problem of Ukrainian fruit market is the ongoing constraining of the orchard acreages. Old orchards are uprooted on the great acreages, new orchards are established on the relatively small fields of 3-10 hectares. The average yield is growing quite rapidly, cause mainly the old low-yielding orchards are destroyed and the intensive orchards are established instead.
On one hand, the establishment of new orchards is stimulated by a good profitably of this business due to high price level on fruit commodities; on the other hand, this business is hampered significantly by an absence of long-term credits. To establish on hectare of an intensive orchard you will need from 30-50,000 UAH which will be reimbursed not earlier than in 3-5 years.