Farmers are resuming work in the liberated regions of Ukraine, in particular in the Kyiv, Chernihiv, Sumy regions. Of course, this is not easy to do – some of the fields are mined, some bridges and roads are destroyed. However, Ukrainian growers of potatoes, vegetables and grains do not stop. “Roads are destroyed, logistics are broken, there is a shortage of fuel and fertilizers… but we are Ukrainians, we are stubborn and purposeful,” says Mykola Gordiychuk, director of Agrico Ukraine, which supplies Ukrainian farmers with high-quality seed potatoes.

In a commentary for SEEDS, Mykola Gordiychuk spoke about how Ukrainian suppliers and producers of potatoes work during a war.

– The situation in the entire agricultural sector, which is strategically important for Ukraine, is still quite complicated. What are the most pressing issues for potato growers?

– The first problem is logistics, delivery of fertilizers, fuel. We cannot buy fertilizers and bring them to our farms in the Chernihiv region, because the bridges have been destroyed. There is only one bridge that can be crossed by a small car. The state is trying to help the agricultural sector, but today small farmers are mostly forced to solve problems on their own.

– What is happening to the demand for seed potatoes? Which varieties are in the highest demand?

– There is a demand for seed potatoes now. First of all, buyers are interested in early varieties, as they understand that the situation in the southern regions of Ukraine is difficult and most farms will not plant potatoes there, or they will not be able to sell them to other regions in time. Therefore, early varieties, such as “Riviera”, “Arizona”, are in great demand today.

But, again, there are logistical problems – for example, when it comes to the supply of seeds from the Kyiv region to the western regions of Ukraine. The cost of logistics services has tripled. Before the war we paid 15 000 UAH for a car, but now we pay 40 000-45 000 UAH for transporting the same 20 tonnes from Kyiv to Ternopil region.

– What are the current trends in the potato market?

– There are enough potatoes in Ukraine today. There is no shortage. The average price for potatoes in stores is quite normal – about 10-12 UAH per kilogram.

– Clearly, it is difficult to make any forecasts during the war, but still, what could this season be like for potato producers?

– Today it is difficult to forecast something. We still cannot say how many farmers will start works in the field. In the temporarily occupied or former occupied territories, many will not be able to carry out field work, since the fields are mined. They need to be cleared and farmers may not be able to start work on time. Now it’s hard to say. It will be possible to make forecasts for potatoes in late April – early May, when we know what areas have been planted.

Video: Preparing seed potatoes

– The majority of Ukrainian farmers helps the population and the defenders of Ukraine in this difficult time. Your company also provided aid. Tell about it.

– We helped several organizations that prepared food for the territorial defense of Kyiv and other settlements. This was especially true when the Kyiv and Chernihiv regions were occupied. Volunteers came to our warehouses in small cars, shipped 2 to 3 tonnes of potatoes every day. We also collaborated with retail chains. They took part of the potatoes for sale, and part for the supply of low-income citizens, who found themselves in difficult circumstances.

We tried to help in every way we could. I think that this is the task of every Ukrainian – to do everything possible to help the army and the country.

– What advice would you give to Ukrainian farmers?

– In this difficult time, first of all, you need to take care of people, your employees, because today there is a big problem of finding personnel, both in the occupied and liberated territories, and in the relatively safe western regions.

I also urge you to plant as many as possible – as many potatoes as you can, because after the victory we will need to feed the country.

Our task is to support the economic front and ensure the food security of Ukraine, so that our defenders and all citizens have what to eat after the victory. I believe that every effort should be made not to disrupt the sowing season, but to sow grain, plant potatoes and do other work on time, if possible.

I realize that the situation is really difficult for farmers today. Ports are blocked, many farmers cannot sell the grain they have left for export. Therefore, they do not have working capital and they have to allocate funds for seeds and other resources extremely rationally. But we must make every effort to do the spring field work and provide the country with food.

Сообщение “We are stubborn and purposeful”: potato growers resume work in the liberated regions of Ukraine появились сначала на EastFruit.

Last year, EastFruit reported that the Ukrainian company FruiTech produced and exported the first batch of blueberry nursery plants for a client from Italy.

According to Oleg Bosyy, managing partner of the company, FruiTech LLC offered European quality seedlings at a competitive price. As a result, a truckload of blueberry nursery plants of the Reka and Bluegold varieties was sent to Italy.

In the difficult conditions of Russian military aggression, disruption of production and supply chains, FruiTech continues to work this year, and even supplies its products to the EU countries.

As Sergiy Zmiichuk, co-owner of FruiTech LLC, said on his Facebook page, the company continues to export nursery plants even to the EU.

“We send blueberry nursery plants to sunny Italy. We make our small contribution to support the Ukrainian economy. We will grow new nursery plants for our Ukrainian producers and after the war we will ship them for autumn planting,” Sergiy writes.

Besides, FruiTech offers two-year-old nursery plants of the following varieties, which can now be bought at a very favorable price:

2.000 Bluegold C1.5

13.000 Bluegold C2

3.000 Bluecrop C2

6.000 Nelson C1.5

20.000 Nelson C2

5.000 Elliott C2

For more information please contact:

tel./fax: +38 043 260 30 80

mobile: +38 067 260 30 80
+38 099 260 30 80

e-mail:   office@ft.ua

Сообщение FruitTech Ukraine – Good prices for top quality nursery plants of blueberries for the EU buyers (photo) появились сначала на EastFruit.

Andriy Yarmak, agricultural market analyst with 30 years of experience, analyzes the information about food surplus in Ukraine.

I do not understand the excessive optimism voiced by some agribusiness experts regarding the large stocks of grain and vegetable oils in Ukraine. They are going as far as to say that stocks are sufficient to feed Ukraine for a few years! Therefore, I want to clarify the real situation with respect to the food security of Ukraine are and what it means for the near future.

1. Stocks of grains and vegetable oils in Ukraine, are now also feeding the russian occupiers, because a lot of these stocks are concentrated in the temporarily occupied territories of the country. The occupiers steal it from farmers to feed their army and to profit.
2. The quality of grains and especially vegetable oils deteriorate during storage. If storage conditions are not optimal, this process would accelerate significantly. As we all know, conditions for storing products are far from optimal in many regions of Ukraine now due to lack of electricity and personnel. Therefore, a large part of this food will be thrown away already in May, when it gets much warmer. What kind of “long-term” stocks are we talking about?!
3. The stocks we have represent a heavy burden for the farmers, instead providing them with the money. After all, farmers must ensure a new production cycle with earned from selling these stocks and the loans obtained from the banks. However, instead of getting the money, farmers are spending the money on trying to store grains, oilseeds and vegoils.
4. Without the sea ports, Ukraine will only be able to export only 10-20% of the grains, oilseeds and vegetable oils at the very optimistic scenario. Even if the war ends now, Ukraine is unlikely to resume exports through ports unto the end of the year. Unfortunately, the infrastructure, including bridges, roads, elevators, railroads, etc. has been destroyed in many regions. Accordingly, farmers who are now heroically preparing for the sowing season with very scares resources also have very grim chances of selling their new crop.
5. I hope that we all understand that it is unreasonable to rejoice in excessive stocks of grains and oils.
6. Let also discuss the diet of Ukrainians. I do not expect anyone to be happy eating only bread and vegetable oil. What about vegetables, fruits, meat, milk, eggs, fish?
7. Livestock business is extremely sensitive to ideal logistics solutions: timely regular supply of veterinarian medicine and services, feed components, maintaining a microclimate in the barns, having access to timely financing, timely sales of finished products for processing, fast logistics of chilled finished products – any failure of the system may result in bankruptcy of the business. In most of the regions of Ukraine livestock business is under a serious threat now, especially in the occupied or surrounded territories with active fighting. Some farmers have already been destroyed.
8. As for the vegetables and fruits, this business is very labor intensive. As of today, more than 3mn people have left Ukraine already. Thus, Ukrainian farmers do not know where to find to work in the fields and orchards already. It is even less clear what will they do when the harvesting time comes. And then the harvest should be quickly exported as fresh produce is a very perishable produce. The risks in this already high risk sector in Ukraine are now much higher than ever.
9. Major share of stocks of onions and other vegetables are in the temporarily occupied areas of the Kherson oblast. They are kept in storages without electricity and, naturally, deteriorate very quickly. Also, the marketing season of early vegetables from plastic greenhouses in the south should begin now. This business “feeds” hundreds of thousands of people in the South, and the products are supplied to all other regions. Needless to say that this business is dead now. The planting of the new crop vegetables in this critically important region may also never happen. The irrigation system is broken by russians, and without it, the south will definitely be left without a crop of vegetables and a large part of the crop of grain and oilseeds!
10. As of the imported fish and fruits, I have nothing good to say. They were mainly supplied through the ports, and it is not clear when imports will be resumed. Therefore, for now, people will have to live without them. And this is a very important element of the country’s food balance.
11. Even in the western regions of Ukraine, there are already some food shortages, because many migrants moved there fleeing from the war and because the supply chain from the Center and South of Ukraine is broken. It is impossible to cover the shortages with imports because the EU did not have major stocks and relies in large on imports. Besides, the EU countries now need to feed additional 3 million Ukrainians, which moved there from the war! Moreover, the entire food system of the EU was set up to accept food imports from Ukraine, and not to export to Ukraine. Therefore, it is impossible to import food from the EU right now! Ukrainian supermarket chains are ready to buy products, but the EU wholesalers simply do not have much availability even at a high price. Thus, Ukraine needs to find a solution and source food somewhere else.
12. Europe does not have the ability to increase food production quickly. This process would take years and would hardly be possible at all because the agricultural area is decreasing,  while environmental standards and limitations are constantly rising.

The main conclusion is that Ukraine does have stocks of the very basic products, but I am far from certain that it is good news, and it certainly does not guarantee Ukraine’s complete food security. Farmers and processors, especially these involved in the production of high value products, are on the verge of bankruptcy, and the threat is growing daily.

If you are a citizen of Ukraine and if you can plant a small garden for yourself this spring, it is worth considering. I am sure that the world will help Ukraine survive this year, but as I have mentioned many times, only the Armed Forces of Ukraine can save the planting campaign this year and the whole agribusiness of Ukraine!

Сообщение Food security and agricultural sector of Ukraine during the war появились сначала на EastFruit.

More than a week ago russia cowardly invaded Ukraine. While russian army killed hundreds of civilians in Ukraine and lost around 10,000 of its own soldiers, death rate caused by the russian invasion on the global scale through destroyed global food security is going to be greater than that of Covid-19.

While the developing world will lose lots of lives from growing hunger, the developed countries will lose unprecedented amounts of money directly and indirectly over decades to come. The russians will also slow down the scientific progress worldwide for many years ahead.

I have been working for 18-20 hours each day since the invasion, trying to do my job and helping people in Ukraine survive russian aggression, I do not have much spare time to do the in-depth analyses. However, I will provide only official stats and draw my own rough estimates based on my 30 years of experience in the global food market analytics. They should be very close to the reality, but I need to say that it is not an official position of my employer. I hope they will share their position asap as well. Here are the scary food security facts caused by russians.

1. According to estimates of the best grain market analysts, wheat and corn account for 27% of all calories, or, in other words, for 27% of all food in the world!
2. Ukraine and russia together export more than 25% of all wheat in the world. Wheat is the key food security commodity on Earth. There are no exports from Ukraine now, and exports have almost stopped from Russia due to their issues with SWIFT and logistical risks. Prices are already in the space. Wheat prices reached $500 USD in Egypt and they can’t get it even for this high price!
3. Where does this wheat from Ukraine and russia go? It is mostly exported to third-world countries. It is already becoming difficult to source it in these countries and some are already scared of the hunger riots.
4. Corn is also a critical product (it is an animal feed, critical for producing milk, meat, eggs, and even fish) and Ukraine is the largest exporter in the region by far. Other exporters in the Americas.
5. Ukraine is a #1 global exporter of sunflower oil, and russia is the second. Together they account for 67% of the global exports! Basically, forget about the sunflower oil, for now, nothing is being exported. I will not mention meat where Ukraine is a significant but not a critical exporter.
6. Ukraine is already missing the planting campaign in the south, where huge hordes of russians are ruining the fields with their tanks and shooting randomly at civilians. Also, now it is critical to apply fertilizers, but this isn’t happening either.
7. I wrote a large blog about fertilizers more than a month ago warning that the shortage is imminent even without the war and that it would worsen global food security considerably. Nitrogen fertilizers are the most critical ones and nearly 80% of the production costs there is gas. With gas prices at their record high levels, the situation is already looking very grim for the yields globally this year.
8. Expensive fertilizers mean that all countries of the world, especially the poor ones, will use less or no fertilizers. Without fertilizers, the harvests will be reduced and some will not make it at all.
9. Even if the war ends today, which is certainly not happening, Ukraine will not be able to export for many more months, and then it will take Ukraine another two years to reach the same production and exports levels. The aggressor, russia, will be isolated and will sharply reduce exports as well. They are already short of crop protection and other imported basics. Energy prices will be high for at least a few more years before the civilized world learns to live without russia’s gas and oil.
10. The number of people in the world who do not have access to a minimum set of calories will increase, according to my very rough estimates, by 800 million people this year, and maybe even by 1 billion, totally destroying the UN’s strategic goal to eradicate the global hunger. Please bear in mind that I did not consider the collapse GDP of all countries in these already very shocking estimates!
11. It means a sharp increase in infant mortality rates in poor countries and many deaths from hunger and other diseases caused by malnutrition among adults.
12. It also means that many children in the world will not be able to realize their full potential, make new scientific discoveries, promote human development because the lack of food in childhood cannot be compensated later.
13. These children from poor countries are now the basis for the development and progress in rich countries. Gifted young people emigrate to the United States, Britain, the EU, and to the developed countries in Asia and ensure their progress. All of this will now slow down sharply, only because putin decided to destroy a free, democratic country.
14. In rich countries, the population keeps a significant share of their savings, inclusive of pensions in the stock market. They already have lost hundreds of billions of dollars in recent days due to the coward russian invasion into Ukraine. Guess what? They will lose even more as this war drags on for a while. They will also now spend hundreds of billions more on food, and this will also come from their future savings. So, the losses of rich countries are much greater than the losses of Ukraine or russia.
15. I want people in the NATO member countries and other developed countries to understand that you are already losing much more than Ukraine or the rest of the world. Staying away from the war is actually bad for you and for your children!

Moreover, not helping to end this war quicker, is causing the death of millions of children in the world’s poorest countries. Future Musks and Jobs may die already this year due to the growing malnutrition.

The army of occupiers is weak and rusty although very numerous. They no longer have any reserves after obliteration caused by Ukrainian resistance. Ukraine proved that russian army could be beaten even without much of modern weapons. Getting directly involved in the war means saving hundreds of millions of lives as well as hundreds of billions of dollars of your money.

The opinion of the authors of comments and blogs posted on the website may not coincide with the opinions and position of the East-Fruit.com editors

Сообщение Global food security destroyed by russian invasion in Ukraine could kill hundreds of millions globally появились сначала на EastFruit.

More than 1 020 000 seedlings of fruit and ornamental trees, various shrubs, seedlings, flowers were presented to consumers by the participants of the fair – the sale of seedlings in Khujand (Sughd region, Republic of Tajikistan).

This fair has long become traditional, being held twice annually, in late winter – early spring and autumn, according to the EastFruit Tajik team. The fair was attended by cooperatives, seed producers, farm enterprises, specialized institutes of horticulture, viticulture and soil science, banking, consulting, international and public organizations aimed at developing the agricultural sector of the Tajik economy from all 18 cities and districts of the Sughd region.

Sanginboy Sanginov, head of the Ovchi-Gonchi seed-growing cooperative, came to the fair from the Devashtich mountain region.

“Our farm specializes in the production of seed potatoes,” says S. Sanginov. “322 ha of land have been allocated for seed potatoes in our farm, and more than 40 tonnes were harvested from each hectare last year. Currently, the cooperative has more than 150 000 tonnes of seed potatoes of the varieties Aladdin, Picasso, Shukrona, Nurinisso, Kondur, Krasnaya Fantasy and the recently popular Azizi variety. The yield of this variety in our conditions reaches up to 50 tonnes per ha.

Our district is the largest potato-growing region in the republic. Farms from all regions of Tajikistan, where this most important agricultural product is produced, purchase seed material from us.”

Another agricultural region – Matchinsky – is located in the other northern part of the region and, in addition to cotton production, specializes in growing melons and peanuts. The first enterprise for processing, packaging and exporting this product in the republic will come into operation this year there.

“Last year, 2 500 ha were allotted for melons in the region,” says Narzullo Boymatov, head of the Department of Agriculture of the Matchinsky region, Narzullo Boymatov. From these areas, our farmers harvested more than 87 000 tonnes of watermelons, melons, pumpkins, a large part of which was exported. This year, it is planned to allocate 2 600 ha for melons and gourds in the region and get a record 100 000 tonnes.”

Greenhouse facilities are also developing in the region. Currently, tomatoes, cucumbers, and lemons are successfully grown in 128 greenhouses of various types in Matcha.

“At this fair, we present not only fruits produced in our region, but also purchase various seedlings,” continues N. Boimatov. “We are planning to set up a new intensive orchard in the district this spring on an area of ​​5 hectares, and over the next 5 years on 50 hectares.”

Сообщение Tajikistan is getting ready for spring: a large fair of seedlings in Khujand (photo) появились сначала на EastFruit.

Digitalization and mechanization become a part of Georgian agriculture as an increasing number of producers invest in precision farming technologies. Mkisa is a Georgian company contributing by building an agricultural business where almost every decision is based on data analysis taken from digital tools directly on the field. In the next few years, Mkisa plans to develop the whole value chain production and become a consultancy service provider for others.

The company started its operations in 2020 and has already planted 10 ha of almonds and 24 ha of maize, while 30 more hectares of almonds and 20 ha of blueberry orchards are planned to plant in the first quarter of 2022. First harvests are expected in 2023. In total, the company owns 200+ ha of land in east and west Georgia and has plans to increase it in forthcoming years. The eastern sites are intended for almonds production, while western sites are for the blueberries.

The decision to plant almonds and blueberries was based on market research, which revealed that almonds and blueberries were the optimal choices in terms of the Return on Investment (ROI) indicator and the time needed to receive the first harvests, compared to other considered alternatives. They also took into account government programs’ and the banks’ potential support while choosing the crops.

EastFruit discussed the company’s experience in digital agriculture and the future plans with its executive director Gigi Gachechiladze.

What kind of digital tools are you using to manage the orchards or planning to use in the future?

We’ve invested in a weather station, plant and soil sensors, as well as drones so far. In combination, these tools allow us to plan and manage almost all operations in the orchards based on precise and live data.

Weather station: price, components, and applications

We bought a weather station from the local representative of USA-based company DAVIS — CVIG. The bundle – weather station covering 40 ha, and leaf and soil sensors for 10 ha – cost 15 000 GEL ($4,644) in 2021. We are planning to add more sensors to cover a total of 40 ha of almond orchards in 2022.

Station has several transmitting nodes installed in the orchard. Each node is equipped with 3 types of sensors, soil moisture and temperature, and leaf wetness sensors. Nodes and sensors are fully autonomous in terms of electricity and the internet. Station uses solar panels as an energy source and 4G for the internet connection.

Analysis of historical data taken from the sensors is crucial for planning or adjustment of schedules and doses of pesticide, herbicide, fungicide, and fertilizer applications, while live data analysis guarantees timely agronomic measures. Agronomists agree that even hours matter when taking preventive measures against the diseases.

Each sensor gives different kind of information to plan various activities. Soil moisture sensor gives data crucial for irrigation and application management. The soil temperature sensor shows the temperature in the ground to analyze the root development of plants. Leaf sensor gives dates and duration of leaf wetness, helping agronomists to assess the effectiveness of applications and rainfalls.

Weather stations can give much more indicators if needed, but on a daily basis we monitor soil moisture and temperature, rainfalls, evapotranspiration (ET), humidity, wind speed, wind direction, and THSW (temperature, humidity, solar radiation, and wind) index. Station also forecasts the weather for the next 7 day period. Each data is crucial to analyze the real state of plants.

Agriculture drones

We have our own drone and are in the research and development stage in this direction. Drones can be equipped with a multispectral camera which gives multispectral images for analytics. We think that this technology will be useful for large fields and orchards as it can identify problematic areas of land and give signals to an agronomist to take a closer look at that area.

We also used an agricultural drone to spray 24 ha maize fields against the disease last year. It was the right decision, as plants were already tall and it was impossible to spray them conventionally. I find it helpful to use drones for spraying annual crops, while I’m a little skeptical about their use in the case of tree orchards. I believe conventional methods will be much quicker in orchards compared to drones, taking into account the short battery life and small tanks of drones.

Labor shortage and mechanization

We consider labor shortage during pruning and harvesting seasons as one of the future challenges. To meet this challenge our almond orchard will be fully mechanized since 2023. As for blueberry production, we consider buying mechanical harvesters. We’ve even selected the specific harvester and plan to attend the harvesting to assess it in the working process. This is the air-jet harvester produced in Serbia, which harvests berries by imitating storm and shaking plants with pulsating air jets. According to the producer’s information, the new technology less damages the fruit in the harvesting process and makes it suitable for selling on the fresh market, but we will have a clear view of it only after the tests in the field.

What are the future plans of Mkisa?

Our intention is not only to become a large-scale producer but to develop self-sustainable and green energy orchards, along with the whole value chain from planting to sales.

In 2023 we plan to build a cold storage and processing facility for blueberries in Tskaltubo or Khobi site, as well as receive certifications for both blueberry and almond production — GLOBAL G.A.P. and HACCP accordingly.

Today we work with local and international professionals to manage processes in the orchards. In blueberry orchard development, Mkisa relies on the knowledge of local consultants but receives coaching from Spain and Poland to manage almond orchards. After gaining the necessary expertise, we’ll become service providers ourselves. By that time our team will have valuable experience in digital agriculture as well, as we’ve already invested in digitalization and will continue in the future.

Сообщение Mkisa — Georgian agricultural company with a focus on digital agriculture появились сначала на EastFruit.

The vertical farm has several key advantages – high productivity per occupied space and relatively low operating costs per unit of production, as well as environmental friendliness of products, the conditions for growing of which are controlled.

Besides, there is also an aesthetic component. Culinary and aromatic herbs, fresh vegetables and fruits on the shelf always attract consumers, and supermarkets are well aware of this. As for vertical farms, their multi-tiered shelves with plants and LEDs of a certain spectrum are still a novelty for consumers. Tusya Garibashvili, the founder of the Urban Farming project, and Adjara Group, known for design hotels, offered a solution that satisfies both environmental and aesthetic criteria.

For two years now, the first vertical farm in Georgia, Space Farms, has been attracting Instagram bloggers to Café Stamba in the very heart of Tbilisi. A wide range of herbs, lettuces and edible flowers, grown in a hydroponic vertical farm, are delivered ultra-fresh to the café. Thus, the distance from the farm to the table is no more than 10 meters. During the pandemic, signing up for a monthly or weekly delivery of a range of fresh herbs grown at the urban vertical farm has become particularly popular.

Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), spoke in more detail about the Space Farms farm, as well as the opportunities for developing vertical farming in the regions, in his blog.

Tusya Garibashvili, who has been engaged in urban farming for more than five years and has gained practical experience in growing herbs and berries in a controlled environment, decided to offer an affordable solution for those who want to have their own vertical farm – Space Farms Spot. The spot is a transparent showcase with shelving and a lighting and irrigation system. The new solution is compact, as it takes up only 2 sq. m. and has low costs – 10–15 kW per day for electricity and minor water costs, since the spot consumes only about 100 liters of water per month due to recycling. At the same time, you can get up to 600 bushes of plants within a month.

If the average weight of one plant is 50 g, then up to 25 kg of culinary and aromatic herbs can be harvested monthly from 2 sq. m. of such a mini-farm. Space Farms Spot is fully automated and controlled from a smartphone app. Therefore, such a mini-farm does not require labor – one person will be enough to plant seedlings and harvest. Together with the equipment, Space Farms offers a service that will periodically supply seedlings for planting in a mini-farm. According to the founder of the company, such a service will be available throughout the region, as it is planned to produce seedlings in other countries of the South Caucasus and Central Asia for uninterrupted supplies to the owners of Space Farms Spot. It is also important that the buyer chooses the assortment, based on demand, and the company is ready to provide any seedlings.

The project is aimed at the B2B sector, primarily hotels, restaurants, and large supermarkets. Also, the mini-farm will be interesting for those who want to develop a “vertical business”, but do not yet dare to make serious investments. Working with Space Farms Spot, it will be possible to understand how suitable this business is for owners before investing tens of thousands of dollars. The declared price of Space Farms Spot is $15 000, financing through leasing is also possible. According to Space Farms, the investment pays off in 5 years.

Сообщение Georgian restaurants will serve ultra-fresh herbs thanks to Space Farms Spot появились сначала на EastFruit.

A couple of years ago, I wrote a rather futuristic blog that doesn’t seem as unrealistic today as it did back then. All this already exists on a commercial scale. Today I would like to tell you about the developments in the segment of culinary and aromatic herbs, which is one of the most important for the countries where our projects operate. After all, both Georgia and Uzbekistan export huge volumes.

Russia imports about 50 000 tonnes of culinary and aromatic herbs per year worth more than $50 million. Uzbekistan is the largest supplier to Russia, and Georgia is one of the largest. What is the future of the culinary and aromatic herbs growing and export business, and what does vertical farming have to do with it?

We, the FAO and EBRD, are launching a project dedicated to the newest technological innovations in the production, processing, logistics and marketing of vegetables, fruits, berries and nuts.

We will pay attention only to real technological breakthroughs, which will significantly reduce the risks in the produce business, while resolving the urgent issues for the industry, such as reducing the negative impact on the environment, increasing efficiency and a sharp reduction in production costs, a reduction in product losses, fossil energy sources used and manual labor costs, an increase in product quality, etc.

One of the most advanced and trending technologies are vertical farms. We are well aware that there is a lot of fuss around this trend now. However, the industry is already attracting tens of billions of investments, which means that the world is actively looking for solutions to problems. Therefore, the EastFruit international team also started studying the situation in our region. As for the global experience, we have been studying it for quite a long time.

I already see at least one business format of vertical farms, which is absolutely economically viable today in our region!

This is a format for growing culinary and aromatic herbs right in a good restaurant or in its back room. After all, it is well known that the cost of products is not a key cost element for a restaurant. At the same time, given increasing competition among restaurants, the quality of products can become the main advantage.

I tasted salads at the Café Stamba restaurant in the very center of old Tbilisi, which has its own vertical farm. Culinary herbs were cut just a few minutes before serving. And they were really tasty! In addition, this vertical farm grows a huge range of culinary herbs that cannot be bought on the market, because no one else grows them. With the help of chefs, producers have found the most flavorful herbs for their recipes, and these experiments can go on. It’s incredibly convenient and very effective. Well, the zero use of pesticides cannot fail to impress those who care for their health.

The second unexpected aspect is that vertical farm is very beautiful! This is an excellent interior decoration, and many people come to Stamba to take pictures of the purple-pink farm with herbs.

Other restaurants in Georgia are interested in purchasing such compact solutions for their own purposes. Tusya Garibashvili, the founder of the Georgian company Space Farms, has already developed a prototype of an automated vertical farm for restaurants and supermarkets, where, according to her, up to 25 kg of culinary and aromatic herbs per month can be harvested on 2 square meters.

Of course, this is only the beginning and the first steps. We know that many supermarket chains are working on their own projects of vertical farms for placement both in sales areas and on facades or investing in partner projects (read the article about the $400 million investment of the world’s largest supermarket chain Walmart in Plenty), realizing that culinary and aromatic herbs grown nearby will always be fresher and tastier than those brought hundreds or thousands of kilometers away. In addition, do not forget about the “carbon footprint” that such transportation leaves. Demonstrating a reduction in the cost of transporting products and a reduction in harmful emissions is now the most important task for every retailer worldwide, including supermarkets in our region. This opens up access to many sources of concessional financing, which is an important advantage for the development of the retail business.

Have you noticed another interesting trend? Many large fruit and vegetable companies are starting to abandon air transportation! Let me remind you that culinary and aromatic herbs are usually only transported in this way, as they are an expensive and perishable product. This means that in the next five years, the export of herbs will sharply decline. If we add the development of vertical farms, which will accustom the consumer to much tastier culinary herbs and a wide range of them, in my opinion, it is time to say farewell to the international trade in fresh herbs.

As confirmation of my words, the international trade in culinary and aromatic herbs has already begun to decline. I think that 2021 will be the fourth year in a row when culinary and aromatic herbs exports, even in value terms, are falling. This means that Uzbekistan and Georgia should start looking for other opportunities, as the trend for the development of vertical farms in Russia is also present and gaining momentum.

In conclusion, I want to say that the largest exporters of culinary and aromatic herbs in the world are Italy, the Netherlands, China, Ethiopia and Mexico. Among the countries of our region, Uzbekistan is among the twenty largest global exporters. On a global scale, the international trade in culinary and aromatic is a $3 billion business. It is possible that the volume of such trade will be minimal in 10 years.

Сообщение Will vertical farms kill the international trade in culinary and aromatic herbs? появились сначала на EastFruit.

The EastFruit international team pays special attention to niche crops that allow small farmers to make good money, as well as the nut market. Pecan is 2-in-1 – it is both a niche nut that can grow in some countries of the region, and an unpretentious crop that can bring very good income even to small producers. Of course, there are many nuances in the pecans growing and processing business, which we will talk about with our experts today.

Are there pecans in Georgia?

Yes, in addition to the most popular nuts in the world – almonds, walnuts, hazelnuts and pistachios – the so-called “American nut” pecans also grow in Georgia. It was originally brought to Georgia as a timber crop, but now it appears that European hazelnut importers are also interested in Georgian pecans. Although there are no commercial plantations in the country yet, this nut is already harvested and processed for export to traditional markets – namely the EU countries and China.

What are pecans and why is it worth paying attention to?

Pecans are similar to walnuts visually and in their properties, but pecans are richer in fat. Pecans contain a large amount of monounsaturated fats (Omega-9), in particular, oleic acid, which helps to reduce the content of bad cholesterol in human blood and increase the good one. Pecans are widely used in cooking, added to pastries, desserts, fish, mushroom and even dairy dishes. However, pecans are also popular raw or roasted as a snack, added to salads, or mixed with other nuts and dried fruits.

Which countries are the leaders in the production and export of pecans?

The pecans are native to North America. In fact, two countries currently control the global production of these nuts. Mexico provides about 49% and the US about 41% of the world’s total pecan production. The remaining 8% are produced in South Africa (6%), Brazil (1%) and Australia (1%).

It should be noted that the global area and production of pecans is quite modest compared to other nut crops. In the 2020/21 season, global production of inshell pecans was only 166.4 thousand tonnes, or about 3% of the production of other nuts. Despite this, the production of pecans is growing faster than the production of most other nuts. Only macadamia and walnut outperform pecans in terms of relative yield growth rates. Over the past 10 years, pecans production in the world has been increasing by an average of 7.4 thousand tonnes annually.

Naturally, the main exporters of pecans are Mexico and the United States, as well as South Africa, which supplies mainly inshell pecans. The top importer of Mexican pecans is the US. The top buyers of US pecan kernels are the EU and the UK accounting for 51% of shipments, and Canada, which bought 8% of all pecans exported from the US in 2019. Since the United States has a very large domestic market, more than 70% of pecans grown are consumed there. One of the largest importers of inshell pecans now is China.

Until July 2018, China was the largest importer of US pecans with a share of over 30% by volume. US pecan exports to China have been on the rise since 2006, and total pecans exports to China in the 2012/13 season reached nearly 37 000 tonnes. However, the trade wars between the US and China that began in 2018 resulted in a 47% import duty on US pecan exports to China, making them unprofitable. Thus, the largest trading partner of the United States has become one of the smallest with a share of less than 6% in the structure of pecan exports from the United States. As a result, China cut pecan imports by more than 80% in the 2018/19 season.

Although later deliveries to China were partially unblocked, the largest increase in demand is observed in the EU countries. Here are the most attractive prices for pecans, fluctuating in wholesale from 8 to 12 EUR/kg of kernels.

In what regions can pecans be grown in Georgia and why is it interesting for investors?

Georgia, which has significant experience in growing and exporting various nuts, has just begun to take the first steps in the commercialization of pecans production. Considering that the country successfully trades with both the EU and China under free trade agreements, the development of this sector can be promising.

Pecans has been growing in Georgia since the beginning of the 20th century. You can find trees on the Black Sea coast that were planted more than 100 years ago, as a pecans tree can live up to 300 years. The selection of adapted pecans varieties began in Georgia in the 1950s-70s, and scientific and practical work on pecans got a second wind in the early 2000s. Since pecans begins to bear fruit late, in 10–15 years, the results of this work have begun to be received only now.

The main area of ​​distribution of pecans in Georgia is the Black Sea coast – Abasha, Khobi, Samtredia, Kobuleti regions, as well as Lagodekhi in Eastern Georgia. These regions are characterized by a long growing season, and walnut yields can reach up to 50–60 kg per tree. Therefore, planning for the commercial production of pecans is advisable to start in these regions. However, it is also worth exploring and testing pecans in other subtropical microzones of Georgia.

According to Zviad Bobokashvili, Doctor of Agricultural Sciences, Head of the Fruit Growing Research Department of the Agricultural Research Center of Georgia, one of the bases for the commercial production of pecan is the organization of varietal production of grafted pecans seedlings. Pecans seedlings are usually used for rootstock. They are not produced in Georgia now, but there has been such experience.

Are there any prospects for the commercial production of pecans in Georgia?

“At this stage, it is important to understand not only how to produce, but also what to produce,” says Zviad Bobokashvili. “Pecans are a cross-pollinated crop, so highly productive adaptive pairs of appropriate varieties should be selected, which is the main prerequisite for the development of commercial production in Georgia,” said Dr. Bobokashvili.

According to the expert, at the first stage it is worth introducing and testing varieties that have been obtained by breeding over the past 20 years in the United States, such as Wichita, Pawnee, Navaho and others. After that, you can start the production and reproduction of pecans in Georgia.

There is a noteworthy experience of growing pecans in the state of Texas (USA) and in South Africa, where they are planted in intensive orchards. High-density pecans plantings can help overcome the problem of early commercial nut yields, as well as using a contour pruning technique that controls tree height. Indeed, with a traditional planting pattern of 12×12 m or 15×15 m, a pecan tree usually reaches up to 30-35 meters in height. On the other hand, this feature of pecan reduces the pathogenic load on the crop – some pests cannot reach the top of the tree and damage the crop.

“Since pecans are a relatively new crop for Georgia, and there are no concentrated industrial plantings of pecan in the country, few pathogens have been detected. This means that they can be successfully controlled,” Mr. Bobokashvili explains the benefits of growing pecans in Georgia. In addition, there is special equipment to spray tall pecans trees.

What are the advantages and disadvantages of pecans for Georgian farmers?

The main limiting factor in the development of pecans industry is a relatively low yield – 1.5-2.0 tonnes per hectare and a long period before entering full fruiting – 12-14 years with a traditional planting pattern. This makes pecans less of an investment-attractive nut crop when compared to hazelnuts, walnuts, almonds, or pistachios. At the same time, there is a positive experience of adapting it to the climatic conditions of Georgia and processing. Also, the pecans kernel yield is higher than that of walnut and reaches 55–58%.

In Georgia, pecans are harvested from November until Christmas. According to producers’ forecasts, current Georgia’s production potential is 150 tonnes of pecans per year. However, since there is no industrial production of pecans in Georgia, there is also no varietal gradation, which is desirable for export. Thus, it affects the export price.

How are pecans processed, dried, cracked and stored?

After harvesting, pecans are dried at room temperature and calibrated. The largest caliber is nuts with a diameter of more than 23 mm. Pecans are considered dry if they contain 6% moisture. Calibrated nuts should be stored in the refrigerator at a temperature above 0 degrees Celsius, as pecans quickly deteriorate due to the high oil content.

The shell of a pecan is harder than that of a walnut. At the moment, the only company in the country that cracks pecans is the Georgian Renaissance Group, which has invested in special equipment for pecans cracking.

The EastFruit team studied how pecans are harvested and processed for export at a facility in the village of Tela, Lagodekhi municipality, Georgia. The company buys mainly wild pecans from consolidators in the Kakheti region, calibrates, dries and cracks. After cracking, pecans are manually taken out of the shell, and kernels are vacuum-packed into polyethylene bags. In this form, pecans are exported in refrigerated containers.

What countries could be promising markets for the Georgian pecans?

The Georgian Renaissance Group exported the first batch of pecan kernels to the EU (Poland) in 2020. The European Union remains the target market for the pecan this year, but the company is also negotiating with Chinese importers who are interested in buying inshell pecans. According to Levan Bolkvadze, co-founder of the company, samples of nuts have already been sent to China and buyers are satisfied with the quality. However, Chinese buyers prefer uniform varietal composition of pecans, which is difficult to achieve now, when there are no commercial plantations of this nut.

There is also a high interest in pecans among importers from Russia, who buy inshell pecans from small farmers in Abkhazia and Samegrelo. This year, inshell pecans are sold at 7 GEL/kg ($2.27), which provides a good income for the local population.

Watch a video about the experience and prospects of growing and processing pecans in Georgia

Сообщение Pecans in Georgia: history, prospects, technologies, prices, varieties, world experience (video) появились сначала на EastFruit.

Global food prices are now at record highs, according to the FAO Food Price Index and consumer perception, especially in the Eastern Europe and Central Asia regions. However, in my opinion, this is far from the limit. Moreover, I believe that there is a high probability that in 2022 food prices, including vegetables and fruits, will rise even sharper, and will set historical records.

Do the representatives of the fruit and vegetable sector in the region rub their hands in anticipation of high profits? No, I don’t think so, and I’ll try to explain why. Although, is possible that for many farmers 2022 may well turn out to be successful.

To begin with, let’s understand why food is so expensive in the world now? 

1.  Macroeconomic
2.  Subsector
3.  Political
4.  Logistics
5.  Energy

I will try to briefly explain them in a random order:

1. 1. Among political reasons, the increasing number of restrictions on the exports or imports of goods, as well as the ongoing trade wars between different countries, have the greatest impact on world prices now. Everything that is expressed in the restriction of the functioning of the free market and the intervention of states in it leads to an increase in the cost of food for the population of these countries. In other words, the process of globalization that we have seen in recent years led to cheaper goods due to lower costs per transaction, but now it has begun to unfold in the opposite direction: states increase duties, introduce various types of government regulation, increase stocks.

    

   2. Macroeconomic reasonsare now having a key impact on the prices of goods in the world. Too much money has been “printed” in the world during the pandemic – this money does not allow demand to decrease, despite rising prices. Inflation in the US at the end of the last year is estimated at 7% – the highest in almost 40 years! Those. if you have savings in dollars, then instead of 100 at the beginning of 2021, now you have only 93 left. Accordingly, inflation leads to higher prices for food too!

    

   3. Logisticsare known to everyone who sells vegetables and fruits. The world is in one of the most brutal logistical crises in history. And so far, it has not been resolved. The cost of delivering food from one country to another is constantly growing, and the possibility of delivery does not always exist even at high prices. The cost of transport has increased by 3-4 times on average, and not only for sea containers, but also for land transportation. In many countries, there is also a huge shortage of truck drivers. Add to that the occasional issue with travel restrictions due to covid-19. And all this, of course, is transferred to the prices of goods for which the consumer pays!

    

   4. Subsector reasonsare those that are important only for a particular sector or product category. For example, if there is an overproduction of apples in the world, and an apple is not a trendy (fashionable) product, then its consumption, even though consumers have money, may not grow, which means prices may not rise either. I will not consider these reasons in detail in this part of the blog, because the situation is very different for each type of product. I will only note that for vegetables and fruits, sectoral reasons are more important than in sectors that focus on the production of raw materials, such as grain, sugar, oil and fat, and, to some extent, meat and dairy.

    

   5. Energy component Rising food prices already have a significant impact but will become key in 2022. Therefore, I will write about it in more detail separately. Let me just say that the energy component affects food prices directly and indirectly. An increase in the price of oil and gas leads directly to an increase in the price of sugar, corn and some vegetable oils, and leads to the price of other products in an indirect way. How is oil pouring in the prices of sugar and corn? Very simply – through bioethanol. The more expensive oil is, the more profitable it is to produce bioethanol and the more sugarcane and corn goes into its production, and therefore less of it is offered for the production of sugar and feed, respectively. It is clear that prices then rise. I will explain the indirect effect on the example of an apple – this “exotic” product for many oil exporting countries is imported in large volumes, when a country starts making more money from energy exports.

Now the average cost of mineral fertilizers in the world has already increased by 70-80% compared to last year. But this is an average. The most significant increase was in the prices of nitrogen fertilizers, which are the basis for the growth of all agricultural crops. In the cost of nitrogen fertilizers, up to 80-90% are the costs of natural gas! And he in Europe is now on average 10 times more expensive than a year earlier.

Accordingly, many plants for the production of nitrogen fertilizers simply stopped, because it is necessary to raise prices for nitrogen fertilizers by 5-8 times in order to maintain the economic feasibility of production. However, at this price of fertilizer, of course, no one will buy.

However, fertilizers, despite some recent weakening of gas prices, continue to rise in price. Precisely because the mass production season is approaching, and the supply of fertilizers has dropped sharply. Demand remains high!

In the cost of production of the same corn, the share of costs for fertilizers reaches 30-45%! Corn is the basis for the production of feed, and this, accordingly, affects the prices of meat and dairy products. And yes, even on the prices of fish, because the bulk of the fish in Asia is farmed.

And this is just an example of one culture. The situation is similar for others. And the same applies to fruits and vegetables, where the need for nitrogen fertilizers per hectare is on average higher than when growing field crops!

What does it mean? This means that now that everyone is buying fertilizer to produce crops in 2022, many will reduce their use of fertilizer, especially in developing countries. It is possible that in the same countries there will be many fake sand sub-standard fertilizers with a discrepancy between the content of the active substance and the declared one.

Of course, a miracle will not happen: the less fertilizer, the lower the yield.

Can we increase the area of ​​land for agricultural production? No, moreover, the area is constantly decreasing, but the population of the earth is growing. Accordingly, in order for food not to rise in price, it is necessary to significantly increase the production of agricultural products every year so that the number of products per inhabitant remains unchanged. If we use less fertilizer on a smaller area, then we should perhaps expect even a decrease in production!

Add to this the factor of climate change , which leads to ever-increasing losses in agricultural crops. Here, of course, you can hope for luck in 2022, but you definitely shouldn’t count on it.

What can help avoid a very sharp rise in world food prices, except luck?

There is also the factor of accelerating the development of technology and increasing investment in more sustainable and efficient agricultural production in the world, as well as the factor of improving the access of those inhabitants of the Earth who grow agricultural. products, to know-how  on more efficient growing technologies and product marketing approaches. These are the things we do at FAO and this is exactly what has helped to avoid food price hikes in recent years.

Why should not the representatives of the fruit and vegetable industry rush to rejoice at a possible increase in food prices in 2022?

I would pay attention to three very important factors:

1) The already mentioned intra-sector factir
2) Deterioration of quality
3) Labor shortage
4) Consumption elasticity

Within each of the subsectors and within regions, the situation can differ radically. If we take, for example, blueberries, then the average selling price for this berry in the leading exporting countries continues to steadily decline from year to year, while the costs of its cultivation continue to grow. The situation is similar with an apple and many other products in this market.

Accordingly, you should not rely solely on inflation if you work in a segment where everyone is increasing production. Moreover, in 2022, production costs will rise very sharply.

Those producers who try to save money by reducing the use of fertilizers or plant protection products will face crop losses and a deterioration in its quality. But it is the quality that determines the price of the goods on the market – a quality apple is sold 10 times more expensive than the one that the consumer does not need. Alas, it is likely that this will happen in the next season quite often.

Well, the labor shortage factor, which has always been very important, will turn out to be key in many countries in 2022. Yes, Uzbekistan and Tajikistan may not suffer so much from it. And in general, for the countries of Central Asia, this is even a certain chance to make themselves known, if, of course, they start thinking not only and not so much about the volume, but about the quality of products.

In Ukraine, Moldova and Georgia, this factor, perhaps for the first time, will lead to crop losses, especially in the berry segment, even without taking into account the almost guaranteed sharp increase in labor costs. I’m not talking about the EU countries and the USA, where already in 2020 it began to have a very serious negative impact on those segments of the fruit and vegetable business that have not yet been fully mechanized.

It should also be noted that transportation market experts do not expect a reduction in logistic costs in 2022. And these costs are shifted not entirely to consumers, but also, in part, to the manufacturer. Accordingly, this factor is also negative for the fruit and vegetable subsector.

Well, one more thing that many people forget. If grain prices rise by 30-40% per year, then this is considered a very serious rise in price. But fruit and vegetable products often become more expensive (and also cheaper) at times. For example, cabbage, carrots, beets, potatoes, onions are now sold in many countries of our region at 3-5 times more expensive than a year earlier. In many countries, fruits were also many times more expensive in season. Raspberries and walnuts have set new price records in 2021.

And here the factor of elasticity of demand is already included – many fruits, berries and nuts are not critical food products, so demand for them may decrease in the event of a sharp rise in prices. And this can already have long-term negative consequences.

In any case, the year 2022 promises to be interesting, but not easy. And we will try to do everything to make this market as transparent as possible. It is not for nothing that the number of unique users of the EastFruit portal in 2021 for the first time exceeded a million people, having almost doubled in a year!

Сообщение Agrifood forecast for 2022: record price increase, fertilizer shortage, declining yields and labor shortage появились сначала на EastFruit.