June 13 2006, 10:04

Fresh salad production will rapidly grow in 2006 - AMP forecast

According to information provided by Agricultural Marketing Project (AMP) to "Agrooglyad: Vegetables and Fruits" journal, the production of fresh salads can grow several times in 2006 in Ukraine. At the same time, AMP experts have doubts that salad consumption is likely to grow by the same rapid rates.

Salad is not considered to be a traditional food for Ukrainians. The companies - salad producers and traders have to create this market from the ground up and to cultivate love to salads of the common Ukrainians. The share of salads in Ukrainian ration is less than a half percent; this figure is more than 10% in Spain. Despite of the fact that salad consumption is growing very quickly in our country (considering the rates of market growth in percents), it is still very low comparing to salad consumption in Western European countries and USA.

McDonald's fast-food chain is the largest salad consumer in Ukraine. According to the evaluations of the Agricultural Marketing Project, this chain consumes up to 35-40% of head Iceberg lettuce. AMP experts assess the volume of leafy and head lettuces production to be around 4-5,000 tons per year. The lettuce of Ukrainian origin is present on market April to November; rest of time it is imported lettuce that satisfies the market demand.

Lettuce production became very popular among Ukrainian farmers in 2006. Andrey Yarmak, the Deputy Director of the Agricultural Marketing Project, speaks about more than three-fold extension of lettuce acreage done by Ukrainian farmers. Early lettuce comes to market from AR Crimea and Odesa oblast, later lettuce is supplied from the central and western oblasts of Ukraine. Such a rapid production growth may happen in summer months and lead to significant price decrease for this commodity; it will be a necessary condition to sell all harvested lettuce.

The prices can be stabilized if large producers of cut and ready-to-eat salads enter the market. However, it has not happened yet, despite of the expectations of market players.