March 10 2006, 15:48

In January, 2006 imports of apples to Ukraine increased 360 compared with the same month of 2005

Agricultural Marketing Project experts forecasted a significant increase in apple imports to Ukraine before the lower season import duty came into effect. However the majority of experts did not expect, that import will increase as sharply as they did. According to official statistics (which do not always capture all apple imports) Ukraine has imported 5 times as much apple in January of 2006 as it has imported during four years (2001-2004). Volumes of apple imports to Ukraine in January 2006 increased 360-fold when compared with the same month of 2005.

During just two months (December 2005 - January 2006) while the lower season duty was effective, Ukraine imported around 25,000 MT of apples for the total amount of around US $6mn. This is despite the fact that some market participants reported about underreported custom value of the imported apples.

The major volume of imported apples (more than 90%) came from Poland. Moldova was also a rather large supplier of apples to Ukraine with about 4% of all apple imports in January. Significant volumes of apples to Ukraine were also shipped from France, China, Italy, Spain, Greece and Holland.

Ukrainian producers of good quality dessert apples were dissatisfied with the government's decision to lower import duties, as the prices which they receive for their produce were much lower than in the past few years. However, the prices for apples in a current season were still considerably higher than costs of production. Thus, none can speak about losses but rather about some decrease in profitability of the given business. At the same time return on investments in the apple production in Ukraine remains so high, that this year very significant increase in the area under intensive apple orchards is expected.

Analysts of "Agrooglyad: Vegetables and Fruits" magazine think that imports of apples to Ukraine in February - March 2006 can increase further as these will be the last two months when the lower import duty is effective. Other important factor, which can lead to the further increase in apples imports, will be a rise in prices for bananas, ads well as high prices for other fresh fruits & vegetables, that keeps consumption of apples high.