July 11 2006, 14:13

Orchardists start harvesting peach in central rayons of Odesa oblast

Orchardists of the central rayons of Odesa oblast started harvesting early peach past week. This information was provided by Dmitriy Chernyak, the Market Information Specialist of Odesa office, Agricultural Marketing Project (AMP). This product is in deficit in season 2006; the analysts think peach production will reduce 70-80% in 2006 in Ukraine comparing to the previous year. First peach shipments have already entered Odesa and Kyiv markets.

At the same time, the price for locally grown peach has settled on the level of $1.17-1.96/kg; this price is significantly lower than some producers hoped for this season. According to data of daily price monitoring conducted by AMP on key markets, at present moment peach prices are 70-90% higher than at the same period of time past year. However, the price growth was only 30-50% in the segment of high-quality peaches - and the majority of professional orchardists of Odesa oblast orientate exactly on this commodity segment.

Retail prices for high quality peach are $2.54-3.52/kg at the present moment (compare to $1.96-2.74/kg at the same period of time past year). The price for medium quality peach is $1.56-1.96/kg this year and was $0.78-1.37/kg past year.

Although peach production has significantly decreased, the analysts think imported peach constrains the prices for high quality peach of national origin. Imported commodity has enough power to compete with local peaches in the upper price segment. And, unlike in previous years, practically all peach of national origin is supplied now to fresh market: the price on fresh market is higher than the processors are able to offer. Market players expect peach price to be rather high during the whole season.