August 22 2006, 11:39

Processing enterprises actively invest to orchard and berry-bed establishment to eliminate raw material risks

The demand growth for fruits and berries has been observed in recent years in Ukraine. The enterprises purchase raw materials to produce processed and flash-frozen vegetables, fruits and berries. And, the quantity of such enterprises is steadily growing year by year. But, the acreage of orchards, vineyards and berry-beds continues reducing. The demand significantly exceeds supply of fruit and berry processing market; as a consequence, most enterprises have been suffering from raw material deficit during recent years. In these circumstances average prices for fruits and berries are growing too, but raw materials are not always of high quality.

Severe winter frosts negatively influenced future harvest in season 2006; orchards and berry-beds were seriously injured. As a result, most processors have not been able to process at least half of past-year volumes of some berry and fruit crops.

The reduction of raw materials risks is the greatest problem for processing enterprises now. Quite many processing enterprises see extremely high feasibility of fruit and berry production. Such processors are inclined to solve the problem of quality raw material supplies through investments to own orchards and berry beds. They have already started to implement such investment projects. As a rule, in this case the most advanced technologies are utilized to establish orchards and berry-beds.

You can judge whether such investment is perspective during the third international conference "Fruits and Vegetables of Ukraine 2006. Open market". There will be also information presented about the perspectives of Ukrainian market in a new season, and its strategic perspectives in general. The event will take place December 5th-6th 2006 in Kyiv. Those Ukrainian processing enterprises which are interested to enter Russian market or improve their positions there, have a unique opportunity to participate in joint stand of Ukrainian companies during the exhibition "IFE Fresh Produce Russia", the largest specialized international exhibition to be held in Russia.