Information for fruit and vegetables business in CIS
Moldavian Apples Cause Producers in Southern Ukraine to Reduce Prices
The Odesa oblast market is overflowing with apples from the neighboring Moldova, produce vendors say making it difficult for local producers and wholesalers to sell stored apples at appropriate prices in local markets. Representatives of one large southern Ukrainian company, specializing in fruit and vegetable storage, report apples sale price is equal to production cost and sometimes even lower.
Apple sets are transported to Ukraine in micro trucks and then the produce is sold at $0.45-0.88/kg in small wholesale markets. The retail price is between $0.58-0.98/kg. Currently, these supplies form the price level in market. According to data from retail price monitoring conducted by the Agricultural Marketing Project at Privoz central market in Odesa, today's prices are the same as a year ago. However, local producers and wholesalers were counting on higher prices this year.
Many modern cold storage facilities, including controlled atmosphere storage, have been constructed in Moldova recently and local companies are able to store large volumes of apples longer and preserve good quality. Taking into account traditionally lower prices of fruits in the Moldavian market and the trend of decreased import tax on agricultural products, local producers and those in the wholesale market in southern Ukraine should get ready for a growth in competition from Moldavian companies.