Russia’s military aggression has disrupted the usual mode of life for all Ukrainians. People mobilized to defend their land. Everyone, in their place, contributes to ensuring the life of the country, fighting at the front, protecting their cities and towns, supplying assistance to the army and civilians, taking care of the food security of Ukraine.

In a commentary for EastFruit, Oleksandr Pakhno, UHA trade cooperation director, head of the “Sady Dnipra” company, reports that the company is working more than usual. According to Oleksandr Pakhno, the employees of the “Sady Dnipra” stayed with their families in Ukraine. Growers have a lot of work now – they collect and deliver aid to the Armed Forces of Ukraine and internally displaced persons. In addition, “Sady Dnipra” supplies its products to all currently logistically available supermarket chains.

The company cares about employees, supporting their families. “We try to stay positive,” Olexandr Pakhno assures.

Сообщение Ukrainian growers work in an emergency mode появились сначала на EastFruit.

As the participants of the Ukrainian fruit and vegetable market report to EastFruit experts, the Ukrainian market significantly activated after the embargo imposed by Belarus on the supply of fruit and vegetables and other food products from the EU from January 1, 2022 was introduced. A sharp increase in demand was noted in several market segments at once, with the largest one in the apple market.

“Of course, this is good news for the Ukrainian market and Ukrainian growers. After all, Poland supplied at least 120 thousand tonnes of apples annually to the Belarusian market, and even more than 500 thousand tonnes when the re-export to Russia was especially active. On the other hand, this somewhat aggravates the prospects for export diversification and may lead to a slowdown in Ukraine’s transition to more modern growing technologies and popular apple varieties. This is very bad news for the Polish market, where prices for quality Idared apples have already dropped to the price level of industrial apples,” Andriy Yarmak, economist at the Investment Centre of the UN Food and Agriculture Organization (FAO), says.

Read also: Russian ban helped Ukraine increase exports of fruits, berries, and nuts

EastFruit analysts believe that given growing demand, the prices for apples, even of varieties that have little demand in recent years, such as Rennet Simirenko and Idared, may rise in Ukraine. By the way, the demand for apples from Moldova has also grown, and this is the main factor in the growth of apple prices in this market lately.

“Cooperative trading platform of the Ukrainian Horticultural Association (UHA) notes a sharp surge in demand for Ukrainian apples from supermarket chains in Belarus. To date, we have already signed contracts with five different supermarket chains that are ready to buy Ukrainian apples of different segments – from affordable to premium. Since we already have obligations to supply large volumes of apples to the EU, the Middle East, Asia and Africa, we invite Ukrainian producers to join our platform to ensure uninterrupted supplies of high-quality apples to Belarus. I also want to remind that we do not buy apples from growers to make money on them. We work on the open accounting principle, when the grower receives the export price minus the documented costs and agreed deductions to support the platform. Farmers selling apples through us receive, on average, 50-70% higher prices now than those offered by intermediaries in the Ukrainian market.” Olexandr Pakhno, representative of the UHA trading platform.

Thus, there are many good news for growers in Eastern Europe, excluding the EU countries. Andriy Yarmak earlier reported five good news, and this one can be considered the sixth, but one that is worth these five combined.

Сообщение Belarus sharply increased apple imports from Ukraine due to the embargo imposed on EU появились сначала на EastFruit.

One of the leading Ukrainian apple growers and exporters Sady Dnipra (UApple brand) got a testimonial on the website of Wageningen University & Research about mutually successful partnership. UApple is well-known for its produce of premium quality, which they export to many countries worldwide, focusing on the EU, Middle East, and South-East Asia.

Explaining EastFruit the reasons for choosing Wageningen as an advisory partner, Oleksandr Pakhno, General Manager UApple expressed the reasons concisely: “We want to be the best in the apple business and to be the best, we have to work with the best”.

The company, despite a challenging season and high domestic prices for fresh apples in Ukraine, exported fruits to 11 world countries and recently shipped apples even to such an exotic destination as Somalia. Oleksandr Pakhno believes that exports will always be important for Ukrainian apple growers. Considering long transit times to Singapore, Malaysia, UAE and Sub-Saharan Africa, where they ship their fruits, UApple needs to make sure that the quality of apples are the best possible and conditions for their storage are perfect.

Testimonial of Wageningen University & Research is quoted below.

Apples from UApple in Ukraine are flown around the world. Many go to Europe, but Asia and the Gulf states are important markets too. To guarantee the high quality of their products and to meet food safety requirements in the different countries, UApple receives expert advice from Wageningen Food & Biobased Research.

“For each apple variety, experts have identified how current storage conditions affect that product. This means we’ve been given targeted advice on adjustments that have allowed us to better maintain quality”, says Oleksandr Pakhno, General Manager UApple.

“As a relatively young company, founded in 2016, UApple is committed to the most innovative techniques for cultivation, storage and distribution. We grow various apple varieties such as Gala, Granny Smith and Golden Delicious. Because of our favourable climate and fertile soil, we harvest apples of the highest quality. In order to maintain quality after the harvest, the postharvest consultancy team at Wageningen Food & Biobased Research helps us to optimise the postharvest process. They advise both on storage and on conditions during distribution, thereby ensuring that our products arrive at their final destination in optimal condition.”

Knowledge partner in postharvest technology

“We chose Wageningen Food & Biobased Research simply because we want to work with the best players in each industry. The consultants have extensive knowledge about postharvest technologies. They have identified how current storage conditions affect our specific apple varieties. We have followed their advice and implemented the technologies they recommended in order to optimise quality.”

Online monitoring of postharvest facilities

“Wageningen consultants continue to be involved, adapting their advice to the current situation, such as changing climate conditions. The team is very flexible and responds quickly. If the situation changes, they offer practical solutions that we can introduce immediately.

This year’s weather conditions have affected the quality of the apples and we had to pull out all the stops to maintain our top quality. The experts at Wageningen collected information, both digitally and on location, and were able to give us the post-harvest advice we needed for each variety.

As well as advice, we are also assured of control. The experts carry out online monitoring to see how our plants are operating and whether we are using the right settings for our refrigeration systems. So with Wageningen’s help, we’re continuing to learn.”

Regular liaison

“2020 was an extraordinary year because of the Covid-19 pandemic and the many quarantine measures. And yet we have been able to achieve a lot and even to step up our collaboration since the previous year. Although our company is not exactly a short distance away, we met face-to-face on average twice a year. And we maintain contact by email and through WhatsApp. We even have a group app and we feel quite at liberty to contact Wageningen if we have questions or there’s something we’re not sure about.”, concludes Mr Pakhno.

Сообщение UApple: “To be the best, work with the best!” появились сначала на EastFruit.

As EastFruit was informed by one of the leading horticultural companies in Ukraine, Sady Dnipra (TM UApple), in March 2021, the company exported its first container of fresh apples to Somalia. Thus, consumers in a new country in Sub-Saharan Africa will soon taste Ukrainian apples.

“Our company is already well known to fruit buyers in the Middle East. After all, we have been supplying apples to this region for several years, thanks to successful trade missions organized by FAO and EBRD and thanks to our overall strategy for export diversification. After the outbreak of the Covid 19 pandemic and the cancellation of most exhibitions and trade missions, finding new buyers was difficult. Therefore, we made the decision to participate in Gufood 2021 Dubai in February this year, even though it is not a trade fair. The collective Ukrainian stand was organized by the ITC (International Trade Centre), for which we are very grateful, because this contract, very beneficial for us, was signed there” Oleksandr Pakhno, head of Sady Dnipra says.

According to Oleksandr Pakhno, the UApple apples were delivered to ten countries of the world, and Somalia became the eleventh country. At the same time, the company mentions the difficulties in working with Sub-Saharan Africa.

“Delivering apples to Sub-Saharan Africa is hard because the logistics is very expensive and delivery time is long. It is much easier and cheaper to supply fresh apples even to Singapore and Malaysia. In this case, there are no direct flights to Mogadishu, so the container was reloaded in Dubai. This has increased delivery time and transportation costs. However, the deal was profitable for us, the terms of payment and the price fully justified the additional difficulties,” Oleksandr Pakhno explains.

Read also: UApple Project Manager: Exports will always be attractive and promising for apple producers

EastFruit analysts note that Ukraine is gradually increasing the supply of apples to the countries of Sub-Saharan Africa, despite the general decrease in export volumes due to a poor harvest for two years in a row. At the same time, one of the advantages of selling apples to Africa is the possibility of selling fruits of a relatively small caliber, which are not in high demand in the domestic market of Ukraine.

Africa imports small size apples because they are usually sold by piece and they can reach one $ apiece. Artem Gudkov, co-founder of GUDIT, Tanzania, revealed more interesting facts on the African fruit and vegetable trade in an interview with EastFruit.

“In 2020, Ukraine exported apples to Sub-Saharan African countries like Gambia and Mauritania. Next year, if the apple harvest in Ukraine returns to its normal level, we consider the possibility of expanding to several more countries in the region, because we start receiving requests for apples supply as importers get acquainted with Ukrainian products and begin to look for suppliers in Ukraine. So far, the reputation of Ukrainian apples in the world remains quite high,” Andriy Yarmak, economist at the Investment Center of the Food and Agriculture Organization of the United Nations (FAO) says.

Сообщение A new country on the Ukrainian apple export map – Sady Dnipra delivered the first container of apples to Somalia появились сначала на EastFruit.

“Sady Dnipra” is one of the leading companies on the market for growing and exporting Ukrainian apples. Officially launched in 2016, it has confidently confirmed its adherence to prestigious international standards. The company is known not only for the high quality of its products but also for its innovative high-tech equipment.

The head of the UApple project, Olexander Pakhno, in an interview with EastFuit, shared the company’s plans and prospects for the current year and told what trends and consumer attitudes he has been observing in the apple market in Ukraine and abroad.

– The year 2020 was a difficult one for Ukrainian apple producers. Due to challenging weather conditions in spring, there is a shortage of high-quality apples on the market for the second year in a row – the products that are most in-demand on foreign markets. Based on this, there is an opinion that prices in foreign markets will be equal to apples’ cost in the domestic market, making exports unattractive for producers. Do you agree with this?

– To some extent. I partially agree with this because this trend was observed at the beginning of the season (August – September), and the price on the domestic market was indeed high. However, exports cannot be unattractive since exports mean stability. Last year, there were more quality apples (Golden, Gala varieties), and the stock price was about 60 cents (per apple). This year, the price is likely to remain the same, but in Ukraine, it may already be higher. Next year, when there are many better quality apples, they will be cheaper, but the export price will always be steadily high. For the manufacturer, exports is a “pillow” that does not depend on the harvest year. Some customers buy goods, and due to the received experience, we have developed our own small customer base. We know which of them is more scrupulous, who is less, and who has what requirements. This year, it will be more attractive to sell apples in Ukraine, but exports will never be discounted if we talk about perspective and foresight.

The culture of club varieties of apples is gradually entering the Ukrainian market, but none of the domestic producers officially grows them.

– What most popular export varieties of Ukrainian apples in the current season would you name as a market player? Have they changed over the past two years?

– Preferences in apple varieties on the Ukrainian market and the export market have not changed over the past two years. We like Golden, Gala, Red Delicious, Fuji, and if we talk about exports, consumer tastes depend on the country. For example, the UAE is very fond of the Gala variety of different calibres since the most important thing is colour and quality.

Besides, world magazines are very active in reporting that club varieties of apples are becoming popular. Such apples do have a flavour advantage over varieties, growing of which includes paying of royalty. Some organizations invest a lot of money in their marketing. At every exhibition, even at the most local one, there is always a stand with Pink Lady, Cosmic Crisp, Kanzi apples. Such trends come from America, and this culture will gradually enter the Ukrainian market. However, so far, none of the Ukrainian producers officially grows club varieties of apples.

Exporting to Asian countries is a pleasure.

– Two years ago, you called the markets of Southeast Asian countries the most promising for the exports of premium quality Ukrainian apples. As we have already mentioned, the last two seasons were not the most successful for Ukrainian producers. So, do you still believe that these markets are the most attractive, taking into account the last two seasons? 

– Generally speaking, the last two seasons have not convinced me in the opposite. It all depends on the country and the client. From our humble sales experience, countries like the United Arab Emirates, Qatar, Saudi Arabia, Singapore, and Malaysia have a completely different business culture. Suppose we are talking about big clients who have already established themselves in the market over many years of work and are not used to cheating, on the contrary. In that case, they support manufacturers because they are interested in stability. They need us to ship our products consistently, and it’s a pleasure to work with such customers. I don’t want to offend anyone, but it depends on the country’s wealth and culture. So, there are significant prospects in such countries as Singapore, Malaysia, Indonesia, or India. Our vector has not changed yet, we continue to work with the Netherlands, Sweden, and Baltic countries, but the main direction is Asia and the Middle East.

– Summing up the results of 2020, what can you say from your point of view about the domestic Ukrainian apple market: what are the most characteristic trends inherent in it at the moment?

– For two years in a row, we have seen a reduced gross harvest on the Ukrainian market, and there are fewer apples. These fruits’ quality is not very satisfactory due to frosts and other weather conditions, significantly impacting the quality of harvested crops. Since there are fewer apples, their quality is not very good, but the domestic market price has been growing for two years in a row. This year, selling apples in Ukraine is even slightly more expensive than last year. So, here is the tendency for an apple to rise in price.

We ended the last harvest year with a profit, but we invested this profit in constructing a storage facility and planting a new orchard.

– You said earlier in one of your interviews, “In fruit production, it is possible to receive the same profit working on a small area as on thousands of hectares in conventional plant growing.” You’ve noted that the apple business pays off in the fourth year after planting the orchard, and already from the fifth year, a farm will start making the first profit. From this point of view, what path is your project today? How soon do you plan to make a profit?

– In 2016, we planted the first orchard; that is, it has been the 5th year since then. However, the area of ​​our orchards has further increased. We planted apple trees in 2016 and the bulk of the trees in 2017 and 2018. That is, at the moment, it is 3-4 years from the moment of the planting of the bulk.

We have a very complex approach to work. To compare, I have acquaintances, orchard owners in other cities, who also grow apples, but everything stops as soon as funding ends. Due to a shortage of resources to cultivate the orchards and protect them from pests and the lack of funds, the whole strategy stops there. Many of them do not have such an innovative storage facility, and they certainly do not expand those storage facilities as the yield increases. Our approach and strategy are completely different.

Since pears will be planted in our orchards already this year, and the recently planted apple trees will bear fruit, the current storage is not suitable for such product volumes, and we will expand it. Besides, we bought a new sorting and packaging line to move away from manual sorting completely.

We have already finished the last harvest year with a profit, but we invested this profit in constructing a storage facility and planting a new orchard.

This strategy of continuous development and improvement is laid down by the company’s investors, particularly by Vadym Ermolaev, Chairman of the Board of Directors of the Alef Corporation, where the “Sady Dnipra” company belongs to.

The same strategy determines the success of all businesses of the Alef corporation – investment in innovation.

– The quality of the products and the apple orchard yield are the most critical business indicators from an agronomic perspective. What are the top priorities for farmers to get a high yield of high-quality apples?

– Everything starts with the selection of varieties. When you have not bought anything yet, it is crucial to initially determine the necessary varieties that are equally popular in the domestic market and the foreign market. Even if you buy a variety that will have very high taste qualities, but no one knows it, customers will not buy it. It takes overwhelming marketing work.

As a project manager, I chose the most popular ones: Gala, Golden, Granny Smith, Red Delicious, Fuji.

A choice of planting material follows. We thoroughly approached this task, learned, analyzed the market, and bought seedlings from the Netherlands’ partners. We even import orchard components, netting, and poles.

When you buy the best, follow the cultivation technology, purity, and correctness of all operations of production, processing, storage, and transportation, that is, you control the processes at all critical points, you will certainly get a high-quality apple at the end.

Another critical point is that a Dutch consultant controls all processes of processing, collection, and transportation. Therefore our success is the joint work of the team of agronomists of the enterprise and Dutch consultants. “Sady Dnipra” is one of the first in Ukraine to cooperate with Wageningen University*.

*Wageningen University and Research Center (Netherlands: Wageningen Universiteit en Researchcentrum) is a large university in the Netherlands specializing in the natural sciences. The university was founded as a higher agricultural school on March 9, 1918, in Wageningen, the Netherlands.

In 1986, the Graduate School received university rights and became known as the Wageningen Agricultural University, and since 2000, it is named the Wageningen University. In 2009, with the Van Hall Larenstein Graduate School’s incorporation, the official name was changed to “Wageningen University and Research”.

By the way, our innovative storage facilities are also built using Dutch technology.

– Your company has a promo campaign in the entire ATB-Market retail network. How did Ukrainian consumers perceive it? Do you plan to expand this activity?

– This promotion continues to this day. However, it is probably better to ask you how consumers perceived (laughs). I can say that my friends and relatives bought apple packages with a collection of magnets, and both parents and children were satisfied.

In those children’s bags, there are apples of very high quality. Besides, I believe that packaging is another plus during the coronavirus pandemic. Because until the moment you or your children eat these apples, no one touched them on the trading floor. In production, the line washes apples in clean water, regularly checked, the line itself is disinfected, apples are packed in gloves, and the sorters work in masks. It is the idea of hygiene as hundreds of people in the store have not touched these apples.

Before the coronavirus and quarantine, probably no one even thought about it, but in today’s realities, this approach is a great advantage and, of course, safety.

As for further activities, yes, we plan to expand. This is our first, but far from the last such promo campaign. We will be creative, change concepts and maybe even surprise, invent something interesting, observe the consumer’s reaction, but we will not reveal all the secrets now. Otherwise, the intrigue will disappear.

Сообщение UApple Project Manager: Exports will always be attractive and promising for apple producers появились сначала на EastFruit.