March 10 2006, 13:58

Apple prices in Ukraine will start growing in twenty days

On April 1st a low seasonal duty on apple imports to Ukraine of 5% of the custom value will be replaced by a regular, much higher import duty of a EUR 0,5 per kilo, according to the information provided by "Agrooglyad: Vegetables and Fruits". In fact it means that the import duty would increase 20-30-fold for the major quantity of imported apples. Lower seasonal duty is effective during the period from December 1st through March 31st according to new custom regulations that were introduced in 2005.

The lower seasonal import duty has impacted apple prices in Ukraine substantially during the winter season. This year prices for high quality apples were lower 2-3 times lower than in the past season while prices for other fresh fruits & vegetables fresh have gone up substantially.

Poland was by far the largest apple supplier to Ukraine this season. However, significant volumes of apples were imported also from Moldova, Spain, Italy and other countries. At present, according to Agricultural Marketing Project's experts, the overwhelming majority of apples, which are sold on the local market, are imported from Poland and other countries. Moreover, in the near future wholesalers, most likely, will try to purchase large lots of import apples to trade it in April - June, before early apples of Ukrainian origin hit the market.

The majority of the Ukrainian apple growers who had apples in their storage facilities have already sold most of them, and, thus, end of the preferential import duty can cause prices for high quality apples to grow. According to Maxim Yenchenko, market information specialist of the Agricultural Marketing Project, at the end of April 2006 wholesale prices for the most popular varieties of apples can grow by US $0,5-0,7 per kg, however, according to him, prices, nonetheless, will remain below past year's by some 15-20%.

According to the estimates shared by Agricultural Marketing Project experts, demand for apples will be kept at high enough level up until the end of May when large supplies of fresh fruits, vegetables and berries from a new crop will enter Ukrainian market. After the end of May demand for apples on Ukrainian market traditionally declines.