Information for fruit and vegetables business in CIS
Ukraine: purchase prices for commercial tomatoes can decline in 2007
According to information got by the analysts of "Agrooglyad: Vegetables and fruits" journal , the largest Ukrainian enterprises - producers of tomato paste, ketchup and tomato juice plan to decline the purchase prices for commercial tomatoes in 2007. On the background of the unsatisfactory low prices for commercial tomatoes in 2006, this information can lead to the considerable reduction of tomato cultivation areas this season. The processors argument their attempt to decline the prices by the opportunity to purchase cheap tomato paste in China. The market players say that at the present moment the shipments of Chinese tomato paste have already pressed down the price for this product on the inner market of Ukraine. As a result, it is becoming more complicated to sell the tomato paste of the national origin. According to the tentative evaluations, most processing enterprises will set the purchase prices for commercial tomatoes up to $0.05-0.06/kg regardless the additional circumstances.
To be able to compete with cheap import, in the end of 2006 the largest Ukrainian tomato producers started actively purchasing tomato harvesters and other equipment to achieve the full mechanization of the commercial tomato growing process. Also, the interest to the technologies of the commercial tomato production on the large acreages has significantly increased. But, another price decrease on market can substantially correct the farmers' business plans: some of them will have to give up producing commercial tomatoes.
According to the preliminary evaluations of the analysts of "Agrooglyad: Vegetables and fruits" journal, comparing to the previous year, the prices can grow for tomatoes which are to be sold on freshmarket and for the purpose of tomato canning in 2007. That's why, to the analysts' opinion, it is too early to emphatically state that the purchase price for commercial tomatoes in 2007 will be substantially lower than the record low price in 2006.