KIEV: After almost a third of the Ukrainian apple harvest was wiped out by frosts in May 2017, growers are happy with current prices, which are compensating for the reduced yields. General production amounts are expected to increase by as much as 11% in 2018, with an even higher increase expected for commercial orchards. Andriy Yarmak, an Economist from TCIC, explains why the official figures for apple production can be misleading; “Out of around 1.1mn tonnes of apple production officially reported, only around 450,000 tonnes are of marketable quality, even according to local standards. Of these marketable quality apples, only 200,000 tonnes could potentially be exported, if proper sorting and handling is applied. For the first time, in the history of Ukraine, the production of commercially grown apples is expected to exceed 500,000 tonnes in 2018, with the possibility of reaching as much as 520-530,000 tonnes. The domestic fresh market could absorb no more than 400,000 tonnes, even assuming significant price decline. This would mean that around 100,000 to 130,000 tonnes of fresh applesAfter 2015, the market landscape changed dramatically, after Ukraine lost around four million Ukrainian consumers on territories of Ukraine occupied by Russia. Ukrainian products were also banned in Russia as well as transit through Russian territory, an important route to reach markets in Central Asia. In the meanwhile, apple yields in the new orchards continued to grow and domestic consumption was decreasing, as war was taking its toll on the economy and consumers, with local apple prices collapsing as a result. The collapse was eased a bit due to devaluation of the local currency so in the euro, prices became very competitive to those in the EU creating opportunities for exports.”
By 2017 Ukraine was already exporting apples to the EU countries, including Germany, the UK and several others. Despite the small volumes, being able to export to the most competitive apple market in the world was worth a lot. In addition to the EU, Ukraine shipped apples to the Asian market, including Singapore, Malaysia, Indonesia and Bangladesh, among others.The Food and Agriculture Organization (FAO) jointly with European Bank for Reconstruction and Development (EBRD) has recently organized a trade mission to this region for horticultural exporters from Ukraine and it was a very big success. Ukrainian apple exporters received the most attention, although vegetable and berry producers were also busy negotiating exporters to Singapore, Malaysia and Indonesia,” Yarmak continued. It is about time for Ukraine makes the transition from exporting low value commodities to exporting high value products.
Turkish president to attend meeting with Ukraine
Turkey's president will attend the eighth meeting of a high-level strategic council with Ukraine in its capital Kiev. The Turkish...
