Ukraine: citrus importers to bear losses
At the moment the situation with citrus sales remains quite complicated. Despite the rapid increase of American dollar exchange course, prices for produce remain unchanged. According to importers, the main reason is extremely low demand against a background of general market saturation with supplies.
Traditionally, the main citrus supplier to Ukraine is Turkey, where, as specialists forecasted, bumper crop of all the main products is expected. That is why, Turkish producers of lemons and tangerines readily decrease prices to draw customers' attention and increase sale volumes.
However, one of the most important grounds for supply to increase is cancellation of imports duties practically for all citrus range in Ukraine due to joining to WTO. According to the information provided by the specialists of Fruit-Inform project, imports of lemon to Ukraine increased by 75 %, volume of tangerine supply increased by 80 % compared to the last year.
Thus, in conditions of foregoing factors and rash decrease of national currency exhange course, citrus trade has become an unprofitable business for many importers. At the moment companies have already reduced supply volumes due to instability on the currency market. At that, most importers plan to stop supplies that may cause sharp rise in prices.
You can get the detailed information about prospects of fruit and vegetable produce imports 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".