The problems started this year and were compounded by a lack of governmental support, programs, organisation, along with misjudgement from growers about apple capacity. Production levels were high this year and now the apples are flooding the market after slow sales.
"The current economic situation in the Ukraine means that many consumers have a lot less money to spend on shopping so they are buying much less fruit and vegetables which is causing problems for producers. The Russian embargo is still having a huge affect, despite movement to Russia via the black market through Crimea and Belarus. It is almost impossible to control. Many companies have also started exporting their apples to other markets such as Indonesia, India and Kazakhstan." said Ivanovych
Apples being sent to Indonesia are fetching between USD$1.00 to $1.20 which is a good price for exports.
It has not been very easy for Ukrainian apple producers to find and enter new markets for their apples because many still use traditional methods. Most are not familiar with modern methods and lack the education and government support to change the situation. This has left many with just the hope that things will improve in the future.
New season
The new season is yet to start, but projections are less than favourable. Last year's apples are still in storage waiting to be sold and prices are expected to remain unprofitable until the end of this year.
"Apple production this year is down because of weather and the quality has been impacted by rains and diseases. The rain and frost has meant that the spring/summer fruits have not been very profitable so growers did not have enough capital to invest in their apples. The government is also not able to give assistance because it needs to help itself first. Chemicals are really expensive and many companies couldn't afford to buy them to protect their trees. Bad weather means that they need to use twice as much chemicals which was just too much for many."
For more information:
Vasiliy Ivanovych
Black Sea Fruit Company Ltd
Tel: +38 (0619) 44 10 95
Fax: +38 (0619) 44 10 95
Е-mail: blackseafruit@bfk.com.ua