Information for fruit and vegetables business in CIS
Ukrainian agricultural producers switch from grain crops to fruits and vegetables
Ukrainian agricultural producers mention more frequently that they are not willing to grow grain crops because of a very low feasibility. They have to consider the alternative possibilities to use the land; in particular, many farmers are interested in vegetable, fruit and berry production, which can provide steadily high profit on relatively small acreage. This fact is proved by the daily conversation with the agricultural producers in the majority of the regions that is conducted by the specialists of the Agricultural Marketing Project on a regular basis. Daily the Project analysts exchange information with more than 1,000 Ukrainian agricultural producers.
This year the excessive supply of newly harvested grain crops is observed on the national market; the price on them dropped down till the level considered by many producers as extremely low. In this connection farmers plan to give up producing grain crops next season or to contract significantly the grain crop acreage at least. The situation is complicated by exceptionally dry fall 2005. As a result, in many regions of Ukraine it is impossible to plant winter crops without additional irrigation. The some of the planted acreage have not sprung in many cases, the others are sick and too weak to stand winter frosts. So, according to the analysts' evaluations, grain crop production may decrease several times next season, Ukraine may again become a net-importer of this commodity.
We'll mention that such situation favors the professional producers who invest into the improvement of the production technologies, acreage extension and expenses' decrease per unit. For such producers even the present prices are really favorable. They talk about plans to extend grain crop acreage next season, as the information about lots of uncultivated land is confirmed. The producers also count on a rapid price growth on grain crops.
Next year we are likely to see new farmers willing to start vegetable, fruit and berry production business. Most clearly this trend is observed among relatively small family farms owing 30-100 ha of lands. This year the prices on the majority of vegetable crops exceed the production cost 3-5 times. Taking into account the past years experience, most probably the new comers will grow potato, onion and other root crops, and also cabbage. Many of them wish to try producing tomatoes and cucumbers, and also berries. So, we can forecast the significant growth of the demand on quality vegetable seeds and transplants in the nearest future. Besides, it is possible that next year we will observe vegetable overproduction.
Short-term and long-term perspectives of the national produce business development can be studied during the second international conference-exhibition "Fruits and Vegetbales 2005" to be held in Kyiv on December 5th-7th 2005.