March 7 2006, 14:38

Celery and fresh herbs production increases under processors' demand influence in Odesa oblast

According to the information provided to "Agrooglyad: Vegetables and Fruits" journal by Dmitriy Chernyak, the Market Information Specialist of Odesa office, Agricultural Marketing Project, the celery acreage continues extending in the oblast. Celery is still a niche crop for Ukraine. To the expert's opinion, annual acreage extension is about 20%; the seed companies confirm this fact recording a constant demand growth on celery seeds. Production growth is created by demand growth from the side of canneries, as the demand on freshmarket increases much slower: Ukrainians do not cook celery traditionally.

In the whole, to the experts' opinion of the Agricultural Marketing Project, fresh herbs production (parsley, dill, celery) is one of the most profitable enterprises in the agricultural business. For example, parsley production returns can exceed three times and more the production cost, according to the Project agronomists' calculations. Celery production presupposes large expenses, but the production efficiency will be not less 100% here, as to the specialists' assessments. And, fresh herbs production is not difficult in view of the agritechnologies.

Despite of the mentioned facts, past year the marketing specialists recorded demand on fresh herbs wholesale sets to exceed significantly supplies done in Odesa oblast. The reason was a rapidly grown demand from the side of the processing enterprises in their attempt to build up capacity and extend the produced assortment. The rate of fresh herbs production growth is slowed down, to the analysts' opinion, by hard storage requirements needed in case of supply failures; an ineffective infrastructure of Ukrainian agricultural market should be considered too. If there are no forward contracts on the produce supply, the farmers are cautious to plan large volumes of fresh herbs production.

The analysts are united to think that fresh herbs production will continue increasing this year by the same rapid rates as in 2005, and the direct contracts between the producers and consumers could add dynamics to this process. It is pleasant to note that much more forward contracts on vegetable, fruit and berry supply to the processing enterprises of Ukraine will be signed this year under assistance of the Agricultural Marketing Project specialists. This activity will cover wholesale companies and supermarket chains too, so that production, processing and trade risks could be eliminated significantly.