Business news from Ukraine

Ukraine in the first quarter decreased imports of citrus fruits by 18%, apples by 43%

Ukraine imported 98.735 thousand tons of citrus fruits, which is 18.6% less compared to the same period of the previous year. In monetary terms, imports decreased by 0.5% – to $95.418 million.

Imports came mainly from Turkey (54.61%), Egypt (21.24%) and Greece (9.33%).

According to STS, Ukraine also imported 1.759 thousand tons of apples, pears and quinces in the first three months of the year, which is 43.8% less than in the first quarter of 2022. In monetary terms, imports were down 3.7% to $2.433 million.

At the same time, 19.615 thousand tons of similar products were exported, which is 14.5% less than in January-March 2022. In monetary terms, exports decreased by 25% to $7.877 million.

In addition, 6.428 tons of apples, pears and quinces were imported, which is 3.9 times less than in 2021. 46.429 tons of similar products (55.7% more) were exported.

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PRICES FOR APPLES IN UKRAINE ARE HIGHEST IN LAST THREE YEARS

Prices for apples in Ukraine are now the highest in the last three years, so the average wholesale prices for apples in Ukraine range within UAH 11-13/kg, the Ukrainian Horticultural Association has reported.
According to a report on the association’s website, the season of local apples is gaining momentum in Ukraine. Ukrainian producers are actively engaged in harvesting autumn varieties of apples, respectively, the supply on the market is increasing every day. Today, the average wholesale prices for apples in Ukraine fluctuate within the range of UAH 11-13/kg. For comparison, at the beginning of September, apple producers were selling their products at 15-20% higher prices.
“Today, prices for apples in Ukraine are the highest, at least in the last three years. In the same period of 2019, local apples were sold on average UAH 1-1.5 cheaper than today, and at the end of September 2018, Ukrainian gardeners were shipping dessert apples at an average of UAH 7-8 per kg,” the union noted.
The price situation that has developed today, according to the association, was significantly influenced by the record high prices for apples at the beginning of the season: in mid-July, Ukrainian gardeners sold the first consignments of apples for UAH 20-22/kg. Another factor that affected the price situation on the apple market is the delay in the apple season by an average of 7-10 days due to unfavorable weather conditions in the country.
“Also, we note that in April and May in Ukraine several waves of frosts were recorded at once, which affected the gross yield of early varieties. Of course, losses in the segment of apples are not as significant as in the segment of apricots and cherries, nevertheless, Ukrainian producers from the central and western regions reported that crop losses reach 20-30%,” the report says.

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UKRAINE LAUNCHES LARGE-SCALE EXPORT OF APPLES TO PERSIAN GULF COUNTRIES

From mid-September, USPA FRUIT started shipping Ukrainian Royal Gala and Golden apples of the 2018 harvest to the countries of the Persian Gulf, including Saudi Arabia, Qatar, the United Arab Emirates and Kuwait.
Considering the first large-scale campaign of exporting apples from Ukraine by sea, USPA FRUIT paid special attention to the quality of exported apples. So, all the apples passed control during harvesting, post-harvest application and applying special regyme of cooling for long term storage. The firmness of all the apples that are exported is at least 7 kg / cm2, which is sufficient for successful transportation and subsequent sale to the final consumer.
USPA FRUIT quality auditors checked each unit of apple packaging, which is especially important for deliveries to the countries of the Persian Gulf and Asia, in order to ensure the weight of each package according to the standard of 18 kg per box, net weight.
Ukrainian apples are valued by new consumers for the special taste and aroma that is provided by the special climate and black soil of Ukraine, which makes it possible to grow an apple using considerably less chemical treatments. Significant differences during twenty-four hours temperatures, which depends on the region but often excceed 20 ° C between day and night, make it possible to obtain an intensive red color in a natural way, which is in most cases 70% +, and thanks to long day and total amount of temperatures also to make an apple very sweet without the use of special chemicals. Such apples are selected by USPA FRUIT for the most demanding of their customers.
The main export of apples from Ukraine, traditionally, was carried out by road, so the USPA FRUIT company was especially attentive to meeting the schedule for delivering ships to the port and building a port logistics system, since the company exports all apples under CIF conditions in order to provide maximum service to its customers, guaranteeing the quality of apples at the port of destination and delivery in time.
Starting from October 10, Ukrainian apples began to arrive to the ports of the Persian Gulf and to the shelves of the largest retail chains. Quality control of apples, ensuring their quality packaging and the conditions of their delivery during transportation, made it possible to completely avoid customer complaints about the quality and packaging of apples, and the demanding Arab consumer fully appreciate the unique taste and aroma of Ukrainian apples, that means the export must go on.

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INDIA OPENS INDIAN MARKET FOR APPLES FROM UKRAINE

Biosecurity agencies of India have decided to open the Indian market for Ukrainian apples, the Ukrsadprom association has reported on its website.
According to the report, Ukrainian apples harvested in 2018 can already be delivered to India, if the established phytosanitary conditions are observed. The Indian side determined the special conditions for supply of Ukrainian apples, in particular, keeping them until shipment from Ukraine at a temperature of 0 centigrade for 13 days, which should be indicated in the phytosanitary certificate.
“The opening of the Indian market for Ukrainian apples is the number one event not only for gardeners, but also for Ukraine as a whole. India is able to completely replace the Russian market, which was the main one for Ukrainian apples until 2014, and also would lead to the need to improve the technology of growing and storage, which was not required for the Russian market, since the time of transportation to India is about a month,” Head of the Ukrsadprom association Dmytro Kroshka said.
In addition, in his opinion, this will lead to the development of maritime logistics of fruits when exporting from Ukraine, will give the opportunity of significantly increasing the trade turnover between Ukraine and India, given the volume and significantly higher cost of Ukrainian apples compared to, for example, grain crops exported to India.

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ANALYSTS EXPECT RECORD HIGH HARVEST OF APPLES IN UKRAINE

The analysis of weather information and gardeners’ reports on the situation in the gardens make it possible to hope for a record high apple harvest, as well as the yield of many other types of fruits and berries in Ukraine in 2018, the Ukrainian Horticultural Association has said. According to a preliminary forecast of the association, the anomalously cold and snowy March of the current year with a high probability will delay the flowering of the gardens, which will allow reducing the likelihood of losses from spring frosts, while the relatively stable climatic conditions of the winter allowed gardeners to almost completely prevent damage and depletion of trees.
The experts expect the total harvest in 2018 to increase, as a significant number of young gardens will begin to bear fruit.
The union said the EU expects a record high apple harvest after last year’s frosts sharply reduced productivity in the gardens. Accordingly, competition in the European apple market will intensify, which will affect prices.
“It’s worth expecting a sharp decline in prices in the apple market in Ukraine. Especially it will be difficult for producers who grow apples of not very popular varieties and low quality. It is likely that such apples will be sold at the same price as industrial ones. At the same time, quality apples of prospective varieties will be actively exported, so exporting producers can even increase their revenue compared to the 2017/2018 season. Quality apples will be sold in the domestic market at a 30-50% lower price than in the previous season,” the association notes.

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