October 27 2008, 08:30

Ukraine: apple producers to confront with difficulties

Ukrainian apple growers are confronted with difficulties in the current season. At the moment the market is saturated with supplies of imported inexpensive produce that causes serious difficulties with sales for domestic producers. Domestic farms declared selling prices within a range of 0.41- 0.93 euro/kg, but in real selling prices are declared within a range of 0.33- 0.67 euro/kg.

Despite the fact that domestic sellers are ready to take off the prices, wholesale companies fairly often purchase imported apple, referring to the balance of price and quality. According to the information provided by the specialists of Fruit-Inform project, prices for imported apple on the domestic market are declared within a range of 0.41-0.67 euro/kg. Prices for imported apple are low due to bumper harvest and low prices in Poland and reduction of import duties according to trade rules in WTO. Till November 30, import duty for apple will total 10%, beginning from December 1, produce will be imported to Ukraine duty-free.

Producers of industrial apples also have difficulties with sales during this season. Most processors rejected purchasing due to decrease of demand and prices for apple concentrate, and the rest declared prices at a very low level, at the same time the requirements for quality of raw material were high. As market participants forecast this situation may lead to a substantial reduce of lands under old orchards in the next season.

Economic crisis will also have a negative impact on development of this industry, as a result of difficulties with bank crediting.

You can get the detailed forecast of future development of the apple market in Ukraine and Russia during the largest conferences in the CIS: the Third International Conference "Fruit & Vegetable Business of Russia - 2008" and the Fifth International Conference "Fruits and Vegetables of Ukraine 2008".