May 25 2007, 10:00

Ukraine reduces the exporting volumes of greenhouse vegetables despite of the record low prices

The representatives of Ukrainian greenhouse complexes inform ""Agrooglyad: Vegetables and Fruits" that a significant export reduction of greenhouse vegetables of Ukrainian origin is observed this year. This fact takes place on the background of the record low prices for greenhouse vegetables on Ukrainian market this season.

The reduced export of the greenhouse cucumbers and tomatoes to Russia is caused by the increased inner production of the greenhouse produce and the declining prices for Russian greenhouse vegetables in that country. These achievements became possible due to large investments to the greenhouse business. The other reason is the increased import of greenhouse vegetables from Turkey and other countries. Belarus, another buyer of Ukrainian greenhouse vegetables, has also started creating modern greenhouse complexes, so that the demand for Ukrainian greenhouse cucumber and tomato is now significantly lower in this country. As a result, the prices for greenhouse vegetables in these CIS countries were so low this year that Ukrainian export turned out to be unprofitable.

The market players say, that Lithuania, Latvia and Estonia have practically fully given up purchasing Ukrainian produce this year due to a great supply of inexpensive high quality greenhouse vegetables from the southern EU countries. These countries used to buy rather large volumes of greenhouse tomatoes and cucumbers in Ukraine earlier.

The declining export aggravated the price situation on the inner market of greenhouse vegetables in Ukraine. The earlier start of the season for vegetable ripening in the film greenhouses, the increased import of cucumber and tomato from Turkey, the export decline altogether led to the fact that in April - May 2007 the prices for greenhouse vegetables were 15-25% lower than at the same period of time past year. However, the prices were 20% higher this year in the beginning of the season. But, the experts admit that the demand has been substantially activated on the inner market due to the lower prices. The average prices will be possibly stabilized and even come back to the previous positions in the nearest future. The experts say, hot weather declines the yield of greenhouse vegetables (cucumbers) in film greenhouses; this fact favors the abovementioned scenario.