September 13 2007, 10:14

Carrot juice production may significantly decrease, the prices may increase in a new season in Ukraine

CIS produce business periodical, "Agrooglyad: Vegetables and Fruits" weekly, informs that high prices for carrot and the perspectives of the significant decrease of this veggy crop production make many processors respectively adjust their carrot processing plans.

"Agrooglyad: Vegetables and Fruits" analysts have tried to estimate the purchase prices for carrot in the processing season: they studied the plans of the processors and compared them to the producers' intentions. The processing enterprises inform, they planned starting carrot purchases in early October for the prices $0.1-0.14/kg. However, now they admit that, probably, no considerable amounts of carrot are likely to be purchased for such a price.

Several small juice producers in Western Ukraine have already been purchasing off-standard carrot from the population and farmers for $0.12-0.16/kg. But, the supplied volumes stay minimal. Most producers plan to set the purchase prices for commercial carrot in correlation with the price set by "Sandora" (Pepsico). They believe they will have to purchase carrot for $0.2-0.24/kg this year. As a result, the price for the ready produce will increase, and, the demand will decline correspondently. In spring "Sandora" signed contracts on carrot supplies for the prices $0.12-0.14/kg. Most probably, this company will get a part of raw materials for a cheaper price than the other juice producers who have no supply contracts in hand.

At the same time, almost all market players and analysts are united to think that carrot processing into juice will significantly decline in 2007 comparing to the previous season irrespective of the purchase price for carrot this season. This fact will affect the whole segment of vegetable juices, because the considerable price growth was recorded this season for tomatoes, pepper and table beet, which are also important sources of raw materials for vegetable juice production.

We'd like to point out that carrot juice has been one of the most dynamically growing segments of juice market in recent years. In addition to carrot juice, various vegetable juices, with carrot as a component and based on carrot juice, have appeared on market; they are also enjoy a good demand among the producers. That's why the leading Ukrainian juice producers have invested considerable funds to the development of this area, first of all in order to explore the raw material zones and to encourage professional vegetable producers for cooperation.

You will find out the details of the perspective production and prices for vegetables and fruits, and also the novelties of production technologies, post harvest handling, storage, packing and marketing during the second international conference "Fruits&Vegetable Business of Russia 2007" to be held October 23rd-25th 2007 on the territory of "Expocenter" in Moscow, and also the fourth international conference "Fruits and Vegetables of Ukraine 2007. Meeting New Leader", to be held on December 4th-6th 2007 on the territory of the National Complex "Expocenter of Ukraine" in Kyiv.