April 4 2006, 10:52

Intensive apple orchards are extending in Ukraine

The professional orchardists of Ukraine were polled by "Agrooglyad: Vegetables and Fruits" journal jointly with the Agricultural Marketing Project. The poll results prove that practically all producers consider funds investment to orchard extension to be a perspective idea, cause apple production business is highly feasible now. According to the preliminary survey results, 27% of the professional orchardists will extend the acreage of the intensive apple orchards in 2006; another 8% producers will establish orchards for the first time. So, the season 2006 will probably become a record year as for the rates of intensive orchards establishment; apple production peak will be observed in these orchards approximately in 2010.

However, Andriy Yarmak, the Deputy Director of the Agricultural Marketing Project thinks that the rates of new intensive orchards establishment are not able to increase the total apple orchards acreage in the country. Moreover, the total apple acreage will probably continue to decline in 2006. Still, to the expert's opinion, orchards acreage is not a key factor. The profitability of the mentioned business, the gross apple production in the country, and an average yield have much greater importance.

Andriy Yarmak says that these factors are more or less good in Ukraine. In 2005 apple production increased due to 10% growth of an average apple yield, despite of 9% reduction of apple orchards acreage. The share of quality marketable apples increased significantly in the gross apple production. Since 1999 an average apple production has grown four times mainly due to the extension of the intensive orchards in the total apple orchard acreage in Ukraine. The advanced and more productive apple varieties are used in the intensive orchards, they play their great role as well.

And, this business profitability is the most important factor. Those producers usually earn a considerable profit which cultivate modern apple varieties, meet a good demand on the inner market, and apply the perspective production technologies. An average feasibility of the production fluctuates within 500% irrespective of the seasonal decrease of the apple import tax. This business attracts national and even foreign investors. The further development of the intensive orchard development in Ukraine is hampered by the absence of land market in the country, and the respective lack of chance to get long-term loans needed for an orchard establishment.