August 30 2006, 11:04

Rapid growth of labor cost will result in the increased wholesale prices for apples in a new season in Poland

Poland entered the European Union, and many EU 15 counties opened their markets to Polish workers at the same time. It helped get the problem of unemployment in Poland off the ground. However, as it has been prognosed, the same situation led to serious difficulties in agriculture. This problem is the most urgent for those agricultural producers who work in labor-consuming sectors of agriculture, in particular vegetable growers and orchardists.

According to information provided by polish sources, local farmers are ready to pay seasonal workers $ 1.56-1.76/hour ($12.5-14 for 8-hour working day). However, Polishes do not want to work for that money. The growers of vegetables, fruits and berries put much hopes on the government which planned to permit Polish producers officially invite seasonal workers from Ukraine. This resolution has got wide coverage in mass media, but finally the government failed to sign it.

And, according to the evaluations of the Agricultural Marketing Project, at present moment wages of seasonal workers in Ukraine are rapidly reaching the level of seasonal wages in Poland. So, even if the resolution is signed, there will be no enormous rush of workers. Maxim Yenchenko, the Market Information Specialist of the Agricultural Marketing Project, says that an average hourly wages for seasonal workers in Ukraine is $1-1.2/hour. Seasonal workers in some regions got even $1.76/hour this season.

The mentioned situation on Polish produce market has already resulted in the fact that the farmers failed to harvest all raspberry, strawberry and other berries. As to the present moment, part of apples is likely to be unharvested. "There is a perspective for wholesale prices to significantly grow on Polish market of marketable apples and of apples for processing. The reason is the expected decrease of apple harvest in Poland, combined with the forecasted record low apple harvest in most EU countries, and a great probability for Polish apples to be partially unharvested." Such prognosis was made by Andrey Yarmak, the Deputy Director of the Agricultural Marketing Project.

Poland is the largest supplier of marketable apple to Ukrainian market; so, the price growth for apples in this country is likely to influence apple prices in Ukraine as well. At the present moment the analysts of the Project jointly with "Agrooglyad: Vegetables and Fruits" journal are trying to evaluate the possible price growth for apples in the coming season in Ukraine. The final forecast is to be introduced by the experts during the specialized international conference-exhibition "Fruits and Vegetables of Ukraine 2006. Open market". This largest for Eastern Europe event will be held December 5th-6th 2006 in Kyiv in the National Complex "Expocenter of Ukraine".