October 12 2006, 10:29

By the end of 2006 juices will go 10% expensive in Ukraine - expert's opinion

Till the end of 2006 the price increase of 10% in average will occur on Ukrainian juice market. This information is provided by RBK-Ukraine with the reference to Igor Landa, the Executive Director of SANDORA LLC.

The expert stressed that this price increase is the consequence of the rising world prices for juice concentrate, in particular it concerns the so-called citrus group. The price for these commodities has already increased twice since 2005. The inner factors played their role too: they were a poor fruit harvest in Ukraine and more expensive fuel. I. Landa says that fuel cost constitutes an insignificant percentage in juice production cost structure. However, this factor seriously affects the production of raw materials.

Also, he pointed out that the companies - juice producers are forced to increase the price for their commodities through the fixation of an average weighted price for all types of juices. For example, most of all, the price increased for the juices produced from the imported raw materials. The price for juices done from Ukrainian vegetables has not been changed much. That's why the juices based on Ukrainian raw materials subsidize the juices done from imported commodities.