July 19 2007, 10:16

Purchase prices for commercial apple have already exceeded past year level

After the season of apple processing started in Ukraine, the processing enterprises have increased the purchase prices for apples till the past year level during just several days; the prices have even exceeded the level 2006 by the end of this week. This information is provided by Market Monitoring Specialists of CIS produce business periodical, "Agrooglyad: Vegetables and Fruits".

Despite of the significantly increased harvest of early apples, the processors' purchase prices for this product have been already higher than in 2006. In the beginning of this week some processors tried to set the purchase prices for commercial apple on the level $0.07-0.08/kg; today the large companies have already inflated the purchase price up to $0.14-0.16/kg excluding delivery cost. That's why it was very difficult to buy commercial apple out of orchard for the price lower than $0.1-0.12/kg in the second half of week.

To the opinion of the specialists of "Agrooglyad: Vegetables and Fruits" weekly, high purchase price for commercial apple is predetermined by the expected dramatic decline of apple processing into apple concentrate in the neighboring Poland; apple harvest may decline twofold comparing to the previous year in that country. The similar situation is observed in the other Eastern European countries where apple production may reduce 30-50% in 2007.

At the same time, relatively moderate price for Chinese apple concentrate presses apple prices down in Ukraine and the EU countries. We can talk about the possible further price growth taking into account the fact that the producers of juices, puree and concentrates in Ukraine offer the prices for apples, which are higher than in the previous year.