December 20 2006, 11:48

This season Ukraine can export significant shipments of carrot and onion to Russia

The first professional weekly periodical of Ukrainian produce business, "Agrooglyad: Vegetables and Fruits" journal, has already informed about the fact that it is very difficult now to sell carrot, cabbage, onion and other vegetables on the inner market. The production of these crops was top record in 2006. A great quantity of vegetables is put to storages in hope of the higher prices. However, the prices for these vegetables have been decreasing during two recent months.

To the opinion of Andrey Yarmak, the Deputy Director of the Agricultural Marketing Project, it is possible to defuse pressure on inner market only through a dramatic increase of export shipments of Ukrainian vegetables. Otherwise, a part of these products will be recycled in spring. The export of most vegetable crops from Ukraine to the EU countries is complicated because of the discrepancy of handling and packing quality. Taking into account this fact, the most interesting options of Ukrainian producers are vegetable exports to CIS countries and to the former Socialistic countries which are not EU members.

One of the sensations of the season was the export of large onion shipments from Ukraine to Poland and other EU countries. According to information provided by market players, taking into consideration the price situation in Ukraine, onion export is possible also to other countries such as Romania, Georgia, Russia and others. At present moment the wholesalers purchase onion in Moscow 35% more expensive than this product costs on Kyiv wholesale market. It is possible to purchase onion in average 2.2 times as cheaper in Kherson and Odesa oblasts than to sell it in Moscow. This fact creates good exporting opportunities as well.

The price difference for carrot is encouraging too. The wholesale price for carrot is in average 40-50% higher in Moscow than in Kyiv. If this product is purchased directly from the farmers, we can speak about perspectives of this crop shipment to Russia. The price difference for table beet and apples is not so significant. However, these crops can be successfully supplied to Moscow as a stock keeping unit.

It is worth mentioning that potato and cabbage in Moscow are somewhat cheaper than in Kyiv. That's why the export supplies of these products to Russia will hardly be profitable to the exporters.