Ukraine: Agri Business News

Ukraine: Agri Business News

Ukraine: Agri Business News

 The FINANCIAL -- price stabilization for apple concentrate -- The prices for apple concentrate stopped increasing on Ukrainian market, the analysts of CIS produce business periodical Agrooglyad: Vegetables and Fruits weekly inform. The experts consider the demand decline from the side of concentrate purchasers in EU countries to be the main factor. EU countries representatives have to observe restrained purchase policy because of the sharp price zooming in recent months.


Despite of the obvious lack of raw materials on market because of poor apple harvest, past year Ukrainian concentrate producers sold their product for up to 1100-1200€/ton. Now the price for national clarified concentrate varies within the limits 1800 to 2100€/tond excluding VAT. The sellers of unclarified concentrate set the prices within the range 1500 to 1800€/ton in Ukraine.


Sharp increase of apple consternate supply is expected in Georgia this year; in this country "Agrooglyad: Vegetables and Fruits" jointly with AgVANTAGE project organizes forum and business tour "Fruits and Vegetables of Caucasus 2007" to be held November 27th-29th 2007. The program of forum and business tour includes the trip round almost the whole Georgia and visits to several fruit&vegetable business enterprises. The participants will see all stages, from production to processing, post harvest handling, packing and sales of fruits, fresh herbs and nuts.

Ketchup and tomato sauces production increases in Ukraine


Despite of the declined tomato harvest in 2007, the production of ketchup and tomato sauces continues increasing in Ukraine, according to information provided by Agrooglyad: Fruits and Vegetables. The production has increased 6% during 9 months of this year; this fact is primarily predetermined by the increased demand from the side of the consumers.


According to estimations of "Agrooglyad: Fruits and Vegetables", around one half of all ketchup and sauces in the country is produced on the basis of imported tomato paste. The prices for tomato paste of Ukrainian origin significantly increased in 2007, and simultaneously, the prices for imported tomato paste increased too as a result of price growth in China.


"Volyn-Holding" (TM "Torchin Product") is still the leading ketchup producer in Ukraine. The leaders are also "Chumak" company with the same-name TM and "Agroekoproduct" which produces ketchup, sauces and canned vegetables under "Veres" trademark.


Whole fruit&vegetable business of Ukraine and neighboring countries is gathering early December in Kyiv to discuss hot issues, related to fruit&vegetable market perspectives, and also to exchange information about the advanced technologies of production, post harvest handling, storage and packing of fruits and vegetables.

Russia: lemon prices continue increasing


The representatives of the wholesale companies reports the prices for lemons continue increasing in Russian Federation.


At the present moment the supplies to Russian market are mainly implemented by Turkish players, where the producers inform about extremely low lemon harvest this year.
Despite of the high prices, there is no way to fully satisfy the demand for lemons, so that the importers are again stimulated to increase prices. One week ago the companies-importers set the price range which upper limits did not exceed $2.26/kg; now the minimal limit does not decline lower than $1.78/kg, and upper limits of the price range often reach $2.43/kg.

According to the forecasts of the specialists of companies-importers, the trend of price growth on lemon market will be preserved until newly harvested lemons from Egypt and SAR start entering Russian market - these supplies will be able to partially compensate the shortage.

Bad weather in Ecuador may lead to another banana price zooming in Ukraine and Russia

Cold weather in Ecuador leads to the slow-down of banana harvesting rates, business periodical Agrooglyad: Vegetables and Fruits weekly informs. This fact aggravates the competition for this fruit on world market. Despite of the temporary price stabilization, the disappointing weather forecasts make the producers hold bananas up in the effort to get maximum prices.


Such large companies like Bonanza (JFC) and Chiquita are trying to fix the prices on market - they suggest the producers to have guaranteed price for a long-term period according to the contracted supplies. However, many producers think the prices will further increase. There is an opinion on market that the prices will be increasing till December. Traditionally, the demand will be even more active in December. That's why, if the forecasts are trustworthy, we should not expect for the significant price decline for bananas till the beginning of the next year.


We'd like to remind that Ecuador is the main banana supplier on Ukrainian and Russian markets, that's why the situation in this country directly influences the prices on Ukrainian fruit market. To the opinion of Andriy Yarmak, the Head of "Agrooglyad: Fruits and Vegetables" project, the price growth for bananas in Ukraine and Russia will lead to the demand growth for apples - according to the experts' forecasts, apples will also increase in price in the coming months.

Juice production has increased 44% during first three quarters 2007 in Ukraine

According to Agrooglyad: Fruits and Vegetables, production of vegetable and fruit juices and nectars during first nine months of this year in Ukraine has exceeded 44% past year benchmarks, according to the data of the official statistics.

Sandora company, recently purchased by PepsiCo, remained the absolute leader as for the volumes of juice production in Ukraine: around 46% of the total production is allocated to this company. The statistics records the production volumes of concentrated juices, so, according to our estimations, Sandora's share in juice and nectar production reached 49-50%.

Market leader demonstrated also the most impressive growth rates - this company increased 64% the production comparing to first 9 months of 2006.


Supplies of agricultural products of Southern Osetia to Russia are permitted

As a result of the agreement between Taimuraz Mamsurov, the Head of Northern Osetia, and Sergey Dankvert, the Chief of Federal Service for Veterinarian and Phyto-Sanitary Inspection, the Ministry of Agriculture, Russian Federation, the supplies of agricultural products, grown in Southern Osetia, to Northern Osetia are permitted. The ban has been in effect for more than a month.


The Chief of Republic appealed to the Chief of the mentioned Federal Service at once after the border for the produce of Southern Osetia has been closed according to the decision of the Inspection. As a result of the efforts of Taimuraz Mamsurov, the inhabitants of Southern Osetia are able to supply to the neighboring Northern Osetia Republic apples, pears and other fruits, but for root crops, cucurbits crops and fresh herbs.


The order of Federal Service for Veterinarian and Phyto-Sanitary Inspection, the Ministry of Agriculture, Russian Federation permits the supplies of cheese and other ready heat-treat diary products to Northern Osetia.


Agrooglyad: Vegetables and Fruits project, developed by USAID,  implemented by Land O'Lakes International Development Division in partnership with its subcontractors - Informa Economics, Development Alternatives, Inc. (DAI), and the Ukrainian agricultural market information agency APK-Inform, Ltd..