Information for fruit and vegetables business in CIS
Hungarian Apples Lose Out in the Ukrainian Market to Polish Competition
According to information provided by wholesale companies, which earlier supplied Hungarian apples to be sold in Ukraine, are saying this business is now unprofitable. Polish apples packed in corrugated cardboard boxes and already shipped to Ukraine are now cheaper than unpacked and unshipped apples in Hungary. The Polish boxed apples cost EUR0.30/kg in Ukraine and Hungarian apples of the same quality already cost EUR0.32-0.35/kg plus they needs to be packed, shipped, and cleared through customs. Because of these circumstances companies have suspended the sale of Hungarian apples.
Increased supplies of Polish apples to the Ukrainian market is primarily caused by two factors: the banned supplies of Polish produce to Russia, which occurred this past year and have not yet been lifted, and the decrease of apple import taxes in Ukraine for the winter period. The decreased tax is a result of the Changes to the Custom Tariff of Ukraine, which came into effect in August 2005. This states that the apple import tax is decreased from EUR0.50/kg to 5% of the declared value for the period from December 1st to March 31st.