Information for fruit and vegetables business in CIS
This year tomato turned out to be a fairly viable crop for Zakarpattya farmers
Despite of its negativity, the price increase on fuel benefited Zakarpattya farmers - tomato producers. The average difference of 100% was observed between wholesale prices on tomatoes in Zakarpattya and in the southern regions of the country, where the bulk of tomatoes is produced. In Kherson oblast tomato cost not more than USD 0.1/kg; though Zakarpattya farmers easily sold tomatoes on USD 0.16-0.24/kg in the oblast.
Lyudmila Dzyamko, the Market Information Specialist of the Agricultural Marketing Project informed that this year tomato became the most profitable crop for some farmers. A high price on tomato in the region is quite logical as the demand on the product is growing at the expense of the increasing processing capacity of the oblast; at the same time the producers have not been able to react to this trend quickly enough. The needs in tomato for processing grew 40% comparing to the previous year, to the opinion of the specialist. Zakarpattya processors were not able to bring large volumes from the southern regions because of high prices on fuel and great transportation losses.
The experts think that such situation may result in the significant extension of tomato production in 2006 in the region, mainly due to the high prices observed this year. Taking into account the fact that no large investments are required for tomato acreage increase, many producers can make such a decision. The regional market, despite of its vigorous growth, is still rather limited, so that the price situation may be quite opposite next year. That is why the experts recommend the producers to find the sales channels and sign a supply contract with processing enterprises before making the decision of bulk tomato production.