Information for fruit and vegetables business in CIS
Severe apple deficit will threaten Ukraine soon
The consumption of apple per one inhabitant of Ukraine remains extremely low, despite of the traditional popularity of the fruit; the reason for this is high inner prices for apple comparing to the competitive products on the background of the relatively low average annual income of the population. According to evaluations of the Agricultural Marketing Project, Ukrainian inhabitant consumes in average 10 kg of fresh apples per year. In the neighboring Poland the average apple consumption is about 20 kg per one inhabitant, in Germany - more than 50 kg. Taking into account the fact that the Ukrainians drink significantly less juice than people in the EU countries, the growth perspectives for the inner apple market may be considered as huge. If the rates of the population income are preserved, in next 3 years the consumption of fresh apples and apple juice (in equivalent to apples) may increase in Ukraine.
On the background of the optimistic perspectives of apple consumption growth the contraction of apple orchards acreage seems to be a real threat for Ukraine. The seasonal import taxes on fresh apples have been decreased 5% since this year that makes the situation even worse; the revenues of the national producers will be lower, as well as their desire to set up new orchards. If the Government of Ukraine does not stimulate the orcharding development in the country, than Ukraine may become the largest importer of fresh apples in the region, and even turn from net-exporter of apple concentrate into net-importer.
You can know more about the perspectives of the produce business development in Ukraine, threats and new investment opportunities from the leading experts of the industry during the second international conference "Fruits and Vegetables of Ukraine 2005" to be held in Kyiv on December 5th-7th 2005.