"We managed to lower prices in the second half of the season last year due to imports from Poland, the main apple supplier for the Ukrainian market. This year, Polish apple prices have reached record levels over at least the last 5 years and continue to increase. Polish apple prices were even more expensive than Ukrainian apples at the beginning of March, but now the situation has changed in favor of imports. Despite this, Ukraine has managed to improve the trade balance of apples this season, exporting 21 thousand tons of apples and importing around 3 thousand tons. During the same period (July-January) last year, exports were 3 times lower, and imports on the other hand were 3 times higher," explains Getman.
Bad weather conditions which created apple losses in the EU have had a large influence on the structure of international trade.
"We have sent almost half of the total apple export volumes to the EU, but the amounts that the EU bought for processing going to countries such as Poland and Great Britain, were minor and experimental, so it is too early to hail this as a success," Getman continues.
Under normal weather conditions, Ukraine is in the position to increase its own harvest by 100-150 thousand tons each year, due to a growing area expansion with high productivity. However, this is also the case for Poland, which has also been breaking harvest records, along with other parts of the EU.
"There have been seasons in the EU, where apple production increased by 1.5 to 2 million tons, in just one year! These types of volumes are equivalent, or larger, than the entire Ukrainian gross apple production! If this type of situation were to occur in the coming season, the competition on the external and domestic market for Ukrainian producers will be the worst they have experienced since the country's Independence. This would cause prices to decrease significantly, and growers would be put under pressure by cheaper Polish apples," she continued.
"It will be difficult for Ukraine to absorb low apple prices. Russia actually remains the main market for sales, due to re-export through Belarus, but each year this channel is becoming more difficult and export volumes are still much lower than before the embargo. The newer markets are still not fully developed, and in many cases, Ukrainian apple quality is not yet up to the standard expected by buyers in the EU and Asia. The irony is that if there are no significant weather issue this spring and summer, it will mean a difficult season for Ukrainian producers, who will most likely be forced to sell their apples for processing."
For more information:
Tatiana Getman
Info Shuvar
Tel: +38 (099) 763-02-32
Email: t.getman@shuvar.com
info.shuvar.com