This is a continuation of the first part of the article on the main fruit and vegetables events in Uzbekistan.

6. Expensive berries and missed opportunities in the berry business

2021 was remembered for the high prices for strawberries and raspberries. Strawberries became available on wholesale markets in the 20th of April at an average price of 60,000 UZS/kg ($5.7), which is 3 times higher than last year. Wholesale prices dropped to 25,000 UZS/kg ($2.4) in two weeks, which was twice higher than on the same date in 2020. The strawberry season ended in the beginning of June, and wholesale prices had dropped only to 20,000 UZS/kg ($ 1.9) by that time, which is 30% higher than last year.

The first large batches of raspberries became available on the wholesale markets of Uzbekistan in early June, and the season ended in mid-November. Average wholesale prices fluctuated in the range of 21,000 – 55,000 UZS/kg ($2.0-5.2). Throughout the 2021 season, the gap in average wholesale prices from last year’s levels was quite large: they were 20-65% higher compared to 2020, and 2-3 times higher compared to 2019. However, the rise in prices was quite modest compared to the rise in prices for raspberries on the global market, where they are sold mainly frozen.

Due to such high prices, Uzbekistan began importing raspberries from Tajikistan in 2021 for the first time, raising raspberry prices there.

Despite high prices, in 2021, frozen raspberries were exported from Uzbekistan to the Russian market for the first time. In total, Uzbekistan exported 83 tonnes of frozen raspberries to Russia in August-September 2021.

EastFruit analysts have repeatedly noted Uzbekistan ignoring opportunities in the berry business, despite the excellent climate and available labor, the lack of which hinders the expansion of raspberry production in other countries. The situation in the country seems to be changing: the establishment of new raspberry plantations started in autumn 2021 in the Fergana region of Uzbekistan, the total area of ​​which will be 300 hectares. Thus, Uzbekistan joins the raspberry boom in many other countries.

Let’s hope that high prices for strawberries and raspberries will be a signal for Uzbek investors who ignore the most profitable and fastest growing segment of the global fruit and vegetable market.

7. New trends in the export of fruits and vegetables

EastFruit analysts note a very important and long-awaited trend in the international trade in fruit and vegetables in Uzbekistan – the volume of exports of frozen vegetables and fruits more than doubled in 2021 compared to 2020. Moreover, there was a shift towards a higher price product category in the structure of frozen fruit export.

According to preliminary data, Uzbekistan exported 12.1 thousand tonnes of frozen vegetables worth $9.3 million in 2021, which is 2 times more in volume and 2.3 times more in terms of exports earnings compared to 2020. As for frozen fruits, the export volume of this category amounted to 5.8 thousand tonnes worth $7.6 million, which is 2.1 times more in physical terms and 2.5 times more in terms of export earnings compared to 2020. EastFruit wrote about the structure of exports of frozen vegetables and fruits from Uzbekistan at the end of October 2021.

Uzbekistan also significantly increased its peanut exports in 2021. In volume, the exports exceeded the level of 2020 by 67% and was twice higher than in 2019. According to preliminary data, Uzbekistan exported 21.7 thousand tonnes of peanuts worth $23 million in 2021. Peanut exports from Uzbekistan to China increased the most. There were no peanut supplies to the Chinese market until 2020. However, 400 tonnes were delivered in 2020, and in 2021 Uzbekistan increased its peanut exports to China 5.5 times compared to 2020! The growth potential of supply of peanuts to China is indeed high. For more information on the structure of peanut exports by major importing countries, read the EastFruit material dated December 17, 2021.

Uzbek farmers have been actively expanding the area of pomegranate plantations in recent years. Based on plans to establish new plantations and taking into account existing ones EastFruit experts expect the annual production of pomegranate in the republic to reach at least 600 thousand tonnes in the next 5-10 years. It is obvious that the domestic market will not be able to consume such a large volume of pomegranate, and the stake is made on increasing the exports.

As statistics show, there have already been noticeable successes in increasing the exports of Uzbek pomegranate – for the second year in a row, the export volume of new harvest pomegranates has been growing. The exports season for pomegranates from Uzbekistan starts in August (the harvest of early varieties starts at the end of July) and ends in February-March next year. Thus, Uzbekistan has made it through the most of the 2021/2022 season. According to preliminary data, it exported 14.7 thousand tonnes of pomegranate worth $10.9 million from August to December 2021, which is 32% more in kind compared to the same period in 2020 and 50% more than in August-December 2019.

At the end of March 2021, EastFruit analysts presented a detailed analysis of a new strategic priority in the country’s fruit sector – increasing pomegranate production. The article was much cited by the media in China, as it is the largest importer of pomegranate in the world. Together with Hong Kong, China imports more than $1 billion of pomegranates a year.

8. Growth in banana consumption in Uzbekistan

In 11 months of 2021, Uzbekistan imported 2.2 times more bananas compared to the same period in 2020. Moreover, the import volume during the reviewed period was almost twice higher than the total import volume in 2020 and 64% higher than that in 2019.

EastFruit analysts identify three reasons for the continuation of the growing trend and such a solid increase in banana consumption in Uzbekistan in 2021:

First, the influence of rumors that discredited bananas during the onset of the COVID-19 pandemic, probably faded away in 2021. The second reason is the relatively high prices for fruits and vegetables in Uzbekistan, particularly for stone fruits, due to weather anomalies in 2021. Bananas were relatively cheap in 2021 compared to apricots, cherries in the first half of the season, apples of early and mid-season varieties, and pears. Third reason is the expansion of supermarket chains that have a crucial impact on the banana trade in the country. Banana is a very convenient product for supermarkets, as they can import it directly all year round and sell it cheaper than in the markets due to the large volume and VAT refunds. Therefore, banana is the best-selling fruit in supermarkets of Uzbekistan. And as the number of supermarket chain stores in the country grows, the consumption of bananas will grow.

Let’s remind that Uzbekistan was earlier included in the list of countries with ultra-low consumption of bananas. By the end of 2019, residents of Uzbekistan consumed only 700 grams, or about five bananas per year per person. The analysis of banana consumption by countries of the world and our region in particular is available here. It seems that despite a sharp increase in the consumption of bananas in Uzbekistan, its position in this global ranking will not change much by the end of 2021.

9. Large-scale concessional financing, subsidies and a new system for the development of the produce sector

EastFruit regularly covered new initiatives of the government of Uzbekistan to stimulate fruit and vegetable producers, support the industry with subsidies, concessional financing and the introduction of new mechanisms in 2021. Below we list the main initiatives of 2021 that are important in the development of the produce sector of the economy.

In early June 2021, EastFruit wrote about the creation of modern greenhouses based on public-private partnerships. Housing and greenhouse complexes will be built in Uzbekistan on low-yielding lands so that people willing to engage in greenhouse farming, could live and work close. Each housing and greenhouse complex will be of ​​at least 20 acres. Within the framework of the partnership, the state will allocate land for the complexes, install utility systems (gas, water, electricity, internal roads) to housing and greenhouse complexes and provide benefits.

It was announced at the end of August that the state would allocate a total of $100 million for targeted financing of projects to create modern greenhouses. However, as there are still issues with country’s greenhouse industry access to gas, it is forced to pollute the environment, damaging the health of people. Therefore, solutions to these very pressing problems for the industry are needed.

At the end of October 2021, EastFruit wrote about specific measures of state support and incentives for fruit and vegetable producers, the implementation of which is envisaged at the beginning of 2022. They include concessional financing, insurance of vegetable and fruit harvest against weather risks, subsidies for the modernization of agricultural machinery, incentives for the imports of equipment, their components, as well as benefits for the planting of new disease-resistant crop varieties and the introduction of water-saving technologies. In mid-November 2021, it was reported that Uzbekistan would allocate almost $400 million to support the fruit and vegetable industry in 2022.

On November 24, 2021, the introduction of a new development system for the produce industry in Uzbekistan was announced. It will be based on strengthening the role of clusters, introducing new cooperation mechanisms, financing fruit and vegetable producers and expanding the provision of agricultural services. In particular, 200 thousand hectares of low-profitable sown areas freed from cotton and grain will be returned to the reserve in 2022–2025. Of these, it is planned to allocate 80 thousand hectares for the production of fruits and vegetables in 2022. Read more about this in the materials of EastFruit dated November 30 and December 18, 2021.

We note that most of these decisions are aimed at increasing production volumes. And this is a direct way to reduce the income of producers, if you do not take care of sales. Therefore, solutions are required to such problems as modernizing and improving the varietal composition of fruits grown in the country, improving the storage infrastructure, processing and packaging, and increasing the efficiency of its marketing. We have repeatedly drawn attention to the alarming trend of a decreasing export of vegetables and fruits from Uzbekistan for two years in a row despite the continuing growth in acreage.

10. New players in the retail market

2021 will be remembered for the active expansion of foreign supermarket chains into the Uzbek market. Two foreign retailers came to Uzbekistan – the largest retail chain in Kazakhstan Magnum Cash&Carry and the Russian discounter chain Dobrozen. The first stores of both retailers in Uzbekistan were opened in the last month of 2021.

Magnum in Uzbekistan

The Kazakh chain Magnum Cash&Carry has been getting ready to enter the Uzbek market for about two years, studying its similarity with the Kazakh market and local peculiarities. Finally, the first Magnum hypermarket in Uzbekistan was opened in the renovated Integro shopping center in Tashkent on December 11, 2021. 20 thousand products, from food, household chemicals to non-food products, of leading producers from Uzbekistan, Kazakhstan and other countries were presented on an area of ​​5000 sq. m. Magnum pays special attention to fresh vegetables and fruits. They include vegetables and fruits even from Brazil, Italy, China, Colombia, USA, Turkey, and, of course, local ones.

The second Magnum store was opened in Uzbekistan in a different district of the same city just a week later, on December 18, 2021. The Kazakh retailer plans to invest about $20 million in the first year of development in Uzbekistan and open two more hypermarkets and several supermarkets in 2022.

Magnum Cash&Carry is the largest retail chain in Kazakhstan. The first store was opened in 2007 in Almaty. The company planned to increase the number of stores to 197 in 11 cities of Kazakhstan by the end of 2021. The total retail area of ​​the chain is 220 thousand sq. m. This indicator is growing by 30% average every year. The chain operates in four formats – express, daily, supermarket and hypermarket, with an assortment of 35-40 thousand SKU, depending on the seasonality.

“Dobrocen” – 4 stores in one month

The first store of the Russian retail chain “Dobrocen” in Uzbekistan opened in Bukhara on December 18, 2021, where more than 1,500 positions of food products, household chemicals and non-food products were presented. The Dobrocen chain opened three more stores in Uzbekistan – in Tashkent, Karshi and Margilan on December 25, 2021. Thus, there are 4 Dobrocen stores in Uzbekistan now.

As of August 2021, the Russian retail chain Dobrocen had 400 stores. It is present only in two countries abroad, except for Uzbekistan: it opened its first store in Belarus in 2019, and in Kazakhstan at the end of April 2021.

The peculiarity of the Dobrocen retail chain is its format of a store-warehouse without division into a sales area and storage, with goods being displayed not on shelves, but on pallets. The assortment includes about 1200 items of the most popular high-quality food products and everyday household goods at the lowest prices.

Bonus – free profitable investment niches of the fruit and vegetable business in Uzbekistan

Uzbekistan stays away from the global trends in the fruit and vegetable business, focusing on traditional cultures and varieties. It is convenient, but while other countries earn good money and reinvest it in the development of the produce sector in their countries, Uzbekistan loses these opportunities. By the way, it is crucial for Uzbekistan to rely on trendy and expensive goods, because the country is located far from the main sales markets and has no access to the sea. Therefore, transportation of goods is more expensive for Uzbekistan than for its competitors.

We will provide you with our rating of profitable niches that Uzbekistan missed, despite the possibility to take advantage of them.

Blueberries are the most expensive and trendy berry imported by Uzbekistan in large volumes, that could bring hundreds of millions of dollars in export earnings to the country. For example, Peru earns $1 billion a year from blueberry exports. Read more about this here.

Nuts: pistachio, almonds, hazelnuts, walnuts – Uzbekistan has favorable conditions for the cultivation of most nuts, but does not use them. For example, the USA, where nut production is concentrated in a similar climate region of California, exports nuts worth approximately $9 billion annually! Considering that the domestic walnut market in the United States is also huge, one can imagine how much Uzbekistan could potentially earn on nuts. By the way, Uzbekistan has no problems with finding workers, unlike the United States! There is a playlist “Nuts” on our YouTube channel with many videos on how different nuts are grown, harvested and processed in the USA and Georgia, as well as presentations by the world’s leading experts in nut production.

Berries: Uzbekistan can export traditional berries such as strawberries, raspberries, blackberries and others almost all year round, thanks to the efficient use of climatic zones and greenhouse technologies. Berries are at the peak of healthy eating trends, and there are more and more of them. The berry freezing segment is also growing at a tremendous rate. Spain earns $1.5 billion a year on the exports of berries and Poland – about $700 million (about the same as Uzbekistan on the exports of all vegetables and fruits combined). Uzbekistan with a wonderful climate and cheap labor earns almost nothing. Even in Tajikistan, the segment is developing faster and more successfully. Therefore, there are many possibilities here too.

Kiwi is one of the most profitable crops for farmers in the countries growing it. For example, many farmers remove and replace them with kiwi plantations in Italy. Global trade in kiwi is growing at a high rate. Of the countries in the region, Georgia is the most successful in developing this sector, even exporting its kiwi to Japan – the most expensive and demanding market in the world! Kiwi production in Uzbekistan is also growing, but there are almost no industrial plantations. We wrote about the peculiarities of growing kiwi in Uzbekistan from the experience of an amateur farmer in this article.

Avocados are the fastest growing segment of the horticultural trade in the world. According to preliminary estimates, avocados can be grown quite successfully in Uzbekistan. Mexico receives about $3 billion dollars a year in revenue from avocado exports. The first commercial avocado plantation has already been established in Georgia. The analysis of the regional avocado market is available here.

Asparagus is also trendy in terms of healthy eating. The demand for it is growing rapidly all over the world, including Russia. Uzbekistan could take advantage of this given its climate. We wrote more about the possibilities of Uzbekistan in growing asparagus in this article.

In fact, there are many niches even in the sectors of the fruit and vegetable business traditional for Uzbekistan. For example, high-quality large-fruited cherries, properly cooled, packaged and delivered to China, can provide 10 times higher revenue than cherries grown in the traditional way and exported to the Russian market. By the way, you can compare these approaches in our two videos: “Traditional cherries of Uzbekistan” and “Ultra-modern technologies of cherries in Uzbekistan“.

Similar analogies can be drawn in other segments as well. However, we hope that Uzbekistan will start focusing on trendy and expensive products, as well as their high quality, in order to ensure the growth of exports earnings and welfare for everyone involved in this industry.

If we missed some of the important trends, please let us know in the comments section.

Сообщение Uzbekistan: TOP-10 Main Fruit and Vegetable Events of 2021 (Part II) появились сначала на EastFruit.

Uzbekistan is increasing the volume of pomegranate exports and expanding their markets, EastFruit experts say.

The video on the Telegram channel Vodiy Bozor (Valley Market) shows Uzbek pomegranates in one of the retail outlets in South Korea. Moreover, the price for a package of three pomegranates indicating the country of origin – Uzbekistan, is sold at 10,000 KRW ($8.4), which means $2.8 a piece! The video does not specify the city in South Korea and whether it is a supermarket or a retail outlet of a different format.

After confirming the supplies of Uzbek pomegranates to South Korea, EastFruit analysts drew attention to the official statistics of Uzbekistan’s foreign trade. According to the Customs Committee of the republic, 125 tons of pomegranates were exported to South Korea from the beginning of August to the end of September 2021. At the same time, 97% of this volume was delivered by air, which explains such a high price of Uzbek pomegranates on the South Korean market.

In just two months of the pomegranate export season – from the beginning of August to the end of September 2021, Uzbekistan exported 5.9 thousand tons of pomegranates worth $4.3 million. In the same period of 2020, the volume of pomegranate exports amounted to 3.8 thousand tons worth $4.6 million. Compared to last year, the volume in physical terms increased by 55%, but the revenue decreased by 7%. It is obvious that the prices of exported Uzbek pomegranates are much lower this year – by about 30-40%, which led to a decrease in export earnings.

According to EastFruit analysts, in August-September 2021, 87% of all pomegranate exports from Uzbekistan accounted for three countries – Russia (50%), Kazakhstan (26%) and Kyrgyzstan (11%). The rest was shipped to Ukraine – 350 tons (6%), South Korea – 125 tons (2%), Turkmenistan – 124 tons (2%), Belarus – 90 tons (1.5%), small batches up to 35 tons were sent to Latvia, Germany, Czech Republic and Mongolia.

Read also: Up to 50% of transportation costs are reimbursed to Uzbek exporters

Compared to other fresh fruit and vegetables supplied from Uzbekistan to foreign markets, the pomegranate export season lasts longer – from August of this year to February-March of the next year, i.e. 7-8 months. Last season – from the beginning of August 2020 to the end of March 2021 – the volume of pomegranate exports from Uzbekistan amounted to 15.3 thousand tons worth $15 million. The start of the current 2021/22 season looks promising, even with a decline in export earnings.

Сообщение Uzbek pomegranates in South Korea – $2.8 a piece появились сначала на EastFruit.

EastFruit analysts note the increased volumes of pomegranate exports from Uzbekistan, according to their estimates, in the second half of August, the volume of pomegranate shipments to foreign markets increased several times compared to the first half of this month. The exports season for Uzbek pomegranates is approaching its peak. At the same time, prices decreased by 2 times over the month: if at the end of July 2021, growers shipped the first batches of super early varieties at 12,000 Som/kg ($ 1.13 per kg), then by the end of August they ship these products at 6,000 Som/kg ($ 0,56 per kg).

According to EastFruit, while Uzbekistan exports relatively little pomegranate – from 10 to 18 thousand tons per year. In the past 2020, the volume of pomegranate exports amounted to 17.4 thousand tons worth $ 18.5 million. However, compared to other types of fresh fruits and vegetables shipped from Uzbekistan to foreign markets, the pomegranate export season lasts longer and the volumes of shipments are distributed more evenly by month. For example, in 2020, the exports season for pomegranates from Uzbekistan lasted 7 months – from August to December. At the same time, with the exception of August, monthly export volumes ranged from 2.2 to 3 thousand tons. Only in August, the first month of the beginning of the exports season, 1.3 thousand tons were shipped to foreign markets. In other words, the export volumes of pomegranates vary greatly from month to month and are more evenly distributed over the months during the entire exports season. Roughly the same picture was observed in 2019. Most of the exports go to Russia and other post-Soviet countries.

At the end of March 2021, EastFruit already wrote about plans to increase the volume of pomegranate production in Uzbekistan to at least 600 thousand tons per year in the next 5-10 years and the prospects for the implementation of these plans. In addition to plans to increase pomegranate production, Uzbekistan also does not forget about opening new markets for the sale of fruits. On April 27, the General Administration of Customs of China announced that pomegranates from Uzbekistan that meet the established phytosanitary requirements will be allowed for export to China . This country is geographically located in the neighborhood and is the largest importer of pomegranates in the world, together with Hong Kong, China imports worth more than one billion US dollars of pomegranate per year.

Сообщение Pomegranate exports season from Uzbekistan is approaching its peak phase появились сначала на EastFruit.

Uzbekistan made pomegranate its strategic priority, which EastFruit analysed in detail here.  It also very important that besides supporting production, Uzbekistan is also thinking of opening new markets for fruits. According to ProduceReport,  on April 27, China’s General Administration of Customs announced that pomegranates from Uzbekistan meeting the stipulated phytosanitary requirements would be permissible for export to China.

According to EastFruit, Uzbekistan exports only 10 to 15 thousand tons of fresh pomegranates per year and most of it goes to Russia and other countries of ex-USSR. On the other hand, China is the largest global importer and imports, together with Hong Kong, pomegranates for a little more than $1 billion.

EastFruit analysts compare the trends in pomegranate trade to these of global fruit bestseller avocado – the global trade of these fruits is indeed growing very fast. “It is a very rewarding to see Uzbekistan focusing on trendy products. Global pomegranate market is growing fast and having China – largest global buyer, as a neighbour, suggests that Uzbekistan is making a good move. However, Uzbekistan would have to develop a large-scale commercial production, storage and handling of newer varieties to match expectations of Chinese buyers, which will certainly take some time and will pose some technological challenges” says Andriy Yarmak, economist of Investment Centre of the Food and Agriculture Organization of the UN (FAO).

It should be noted that the pomegranate supply season in Uzbekistan typically lasts from September to November, which partially overlaps with that in China (July–November). Furthermore, pomegranate production in Uzbekistan is focused on local varieties, which may be less appealing to Chinese consumers.

Сообщение Pomegranates from Uzbekistan are now cleared to be exported to China появились сначала на EastFruit.

Farmers in Uzbekistan have been actively expanding the area cultivated with pomegranate in recent years. At the same time, the cultivation of pomegranates in Uzbekistan seems to be promising for both its farmers and officials.

Appetite for pomegranate is increasing – especially on paper

In September last year, EastFruit wrote about the country’s plans to increase the total area of ​​pomegranate orchards in the Fergana region to 20 thousand hectares, from which more than 200 thousand tons of pomegranate would be harvested per year. Two months later, the Ministry of Agriculture announced an increase in pomegranate plantations in the Kashkadarya region of Uzbekistan by another 2 thousand hectares.

However, the appetite for pomegranate continues to increase. An even more ambitious plan to expand the production of this crop in the southernmost region of the republic was revealed last week. The Uzbekistan National News Agency informs about the increase in pomegranate production in the Surkhandarya region and raising the annual volume to 300 thousand tons in the foreseeable future. However, it is rather difficult to define what “foreseeable future” means in this case.

Taking into account the plans in the Fergana and Kashkadarya regions, as well as existing plantations in other regions of the country, the annual volume of pomegranate production in the republic may reach to at least 600 thousand tons in the next 5-10 years.

Will the plans be realized?

It should be mentioned that these are still only grandiose plans, the implementation of which may be hindered by many factors.

First of all, it is the climate of Uzbekistan, which is not the best for cultivating pomegranates, even in the southern regions of the country, pomegranates periodically freeze in winter. As a result, pomegranate bushes are often covered for the winter and this is a very labor-intensive process even when growing pomegranates on a 1-hectare surface. However, if plans to establish tens and hundreds of thousands of hectares are realized, it is difficult to imagine how these areas can be protected from the cold in the winter.

The second factor is the ambitious yield indicators estimated in the business plans. Reality tends to be less optimistic than the plans.

The third factor is the varietal composition. The global pomegranate market is indeed growing, but it needs high quality fruit of certain varieties, while in Uzbekistan the emphasis is made on local selection, which is not highly valued in the world market.

It might be worth thinking about industrial processing of pomegranate for Uzbekistan, if production continues to grows so rapidly, and traditional local varieties are used for cultivation. After all, as we will describe below, pomegranate is a very interesting crop not only for the fresh fruit market, but also for the processing market, both food and cosmetic and even pharmaceutical.

Uzbekistan is not a major player in the international fresh pomegranate market yet, so it will inevitably face export difficulties when selling fresh products. The country exports an average of 10 to 15 thousand tons of fresh pomegranates per year, and almost all of this is exported to the former USSR countries. The growing supplies of pomegranates from Uzbekistan to the markets of South Korea and the UAE inspire certain amount of optimism.

World market: is pomegranate a new avocado?

Uzbekistan is betting on the role of one of the leading producers of pomegranates in the world and the largest in the Central Asian region.

Despite the fact that pomegranate accounts for a very small share in the total turnover of fruit and vegetables in the world, its consumption is growing rapidly. Total global pomegranate imports from 2014 to 2018 grew by 24%. At the same time, many market experts expect the global pomegranate market to grow at almost the same rate as the avocado market. Especially against the background of the coronavirus pandemic, pomegranate, which contains a large amount of antioxidants, is highly demanded by the population concerned about immunity and the search for “superfood”.

Not only healthy food, but also cosmetics and even pharmaceuticals!

Pomegranate has two unique components that are considered to be very healthy. Punicalagin is a powerful antioxidant found in the seeds and skin of pomegranate, an antioxidant activity of which is almost 3 times higher than that of red wine or green tea. Punicid Acids, obtained from pomegranate seed oil have powerful biological effects. Due to its unique properties, pomegranate is in constant high demand on the world market, and world prices for it continue to grow, despite the growth in the area of pomegranate orchards in many countries of the world.

According to research by the Special Department for the Development of the Export of Agricultural and Processed Foods of the Ministry of Commerce and Industry of India, the total global market for pomegranate and pomegranate seeds was estimated at $8.2 billion in 2018, and is projected to increase to $23.14 billion by 2026 – almost 3 times (!). The main factor underlying this forecast is the growing demand for products made from raw pomegranates and there are a lot of them: pomegranate powder, pomegranate juice and various drinks from it. Moreover, pomegranate is used not only in food, but also in the cosmetic industry, where it is becoming more and more widespread. Pomegranate is also used in pharmaceuticals.

The largest segment of the pomegranate processing market is the consumption of pomegranate powder. 4.8% average annual growth rate of this segment is projected in the next 5 years. Second in the market share are concentrates, which are used to produce pomegranate juices, syrups and sauces. In addition, the popularity of the consumption of pomegranate juices and cosmetics made with the use of pomegranate (extracts of grains, seeds, peels, etc.) is growing.

Largest pomegranate importers and consumers

The largest consumer of pomegranate in the world is the Asia-Pacific region (APR). It accounts for about half of the global consumption (45-50%). It is followed by Europe (20%), North America (15%), the Middle East and Africa (10%) and Latin America (5%).

As the world’s largest consumer, the Asia-Pacific region is also home to leading pomegranate producers such as India, Iran and China. At the same time, the first two countries are net exporters of this product, and the demand for pomegranate in China far exceeds the volume of domestic production, so China is a major importer of pomegranate.

About 65% of the total volume of pomegranate consumption in the world falls on the food industry (fresh consumption, juices, syrups, sauces, jams, etc.), about 20% falls on cosmetics and 15% falls on the pharmaceutical industry.

As for pomegranate importers, China is the absolute leader. In 2018, China imported pomegranates worth of $857.5 million, and if counted together with Hong Kong, of a little more than $1 billion.

Producers and exporters of pomegranate

India is the largest pomegranate producer in the world. India is increasing its production of pomegranate by 20-25% annually. The most popular pomegranate grown in India is Bhagwa, which has a very sweet taste and high quality. The pomegranate ripening period lasts 11 months a year there, which gives India a huge advantage over other leading producers and exporters.

The geography of export of fresh pomegranates from India covers about 35 countries of the world, the largest of which are the United Arab Emirates (32% of India’s total exports), the Netherlands (11%), Saudi Arabia, Oman, Nepal and Qatar.

Despite the fact that China and Hong Kong are the largest importers of pomegranate in the world, they account for a small share of the total supply from India. It is believed that the reason for this is the political tensions between China and India. Accordingly, this situation gives Uzbekistan a great advantage, since other leading world producers of pomegranates are located further from China than Uzbekistan.

At the same time, it should be noted that China is also a major producer of pomegranates, and the harvest season in China lasts from July to November, while in Uzbekistan it lasts from September to November, thus the seasons in Uzbekistan and China overlap, which makes the Uzbek pomegranate less attractive to the Chinese market. The prospects for exporting pomegranates from Uzbekistan to the Chinese market can be increased by improved technologies for long-term storage of pomegranates to extend the supply season.

Other major producers of pomegranates in the world are Turkey, Iran, Tunisia, Peru, Israel and Azerbaijan. Due to their geographical location, all of them are the main competitors of Uzbekistan in the markets of the European countries and Russia. In addition, pomegranates are harvested in most of these producing countries almost in the same period as in Uzbekistan.

Russia imports its biggest share of fresh pomegranates from Turkey. Large suppliers also include Iran, Azerbaijan, Egypt and Peru. Uzbekistan and even Georgia have in recent years joined the countries that are actively increasing the exports of fresh pomegranates to Russia.

Therefore, the trend for large-scale pomegranate cultivation in Uzbekistan is very promising but the prospects of this business will depend on the thoughtfulness of decisions made by producers and the level of technologies for growing and processing products.

The results of research on the global pomegranate market conducted by the Agricultural and Processed Food Products Export Development Authority of the Ministry of Commerce and Industry of India were used in this material.

Сообщение Pomegranate – a new strategic fruit for Uzbekistan появились сначала на EastFruit.

Georgia consumes more than one million US dollars worth of imported pomegranates every season. Pomegranates are produced locally, some even in large-scale orchards. However, they are mainly imported from Turkey and Azerbaijan at this time. Wild crops of pomegranate trees are widespread throughout Georgia, but the optimal climatic conditions for its cultivation are in the Kakheti, Dedoplistskaro, and Sighnaghi municipalities. Imports, as well as local harvesting, began in late September. Today, pomegranates are sold at almost every grocery store and supermarket in Tbilisi.

East-fruit contacted one of the largest pomegranate orchards in Georgia to discuss the production process in more detail.

Khornabuji Ltd owns 35 hectares of pomegranate orchards in the Sighnaghi municipality of the Kakheti region. 15 hectares were planted 4 years ago and the remaining 20 hectares 2 years ago. It takes 6-7 years for pomegranate trees to reach their full harvest capacity so their orchards are still young and the yield is small. The owner decided to cultivate pomegranate orchards for industrial-level production because of the favorable climatic conditions in their region.

When cultivating pomegranate orchards that will not be used for processing, be sure to pay special attention to the selection of seedlings. This necessity was learned through their own experience. Initially, they planted seedlings from Azerbaijan on 15 hectares. When the orchard reaped its first harvest, they discovered that they would have to sell more pomegranates to processing companies than expected. The company learned from their experience when expanding the orchard two years ago. This time, they planted seedlings of the Turkish pomegranate variety Hicaz. According to the director of the company Avtandil Jibladze, the new variety has a better appearance and can be stored for a longer period. Also, Hicaz is a sweet-sour variety, which, according to their observations, is more acceptable to Georgian consumers than the relatively sweet pomegranates from Azerbaijan.

Read also: The current export rate of Georgian apples is 13 times higher than last year

The 2020 harvest began in late September and lasted for one month. 60 tons of pomegranates were harvested from the 4-year-old orchard and most have already been sold. Part of the harvest was kept for observation to better explore their storage processes both outside and in cooling storage units to compare the results. According to Jibladze, pomegranates are kept in refrigerated stored at 5-6 degrees. If the temperature drops below 5 degrees, the pomegranates change color and turn white. If kept at ambient temperature with no additional storage means such as waxing, pomegranates can be stored up to 3-4 months.

Khornabuji pomegranates were sold to resellers from the orchard as well as in supermarkets (e.g., Goodwill, AgroHub), and some sent to a processing plant. The delivery price for processing was 0.5 GEL ($0.15), while the prices on the fresh market ranged from 1.5-2.5 GEL ($0.45-$0.75). According to Jibladze, prices up to 1.5-2.5 GEL ($0.45-$0.75) are profitable for pomegranate producers, but we should note that only quality pomegranates are sold at this price. Thus, to get the maximum profit, the share of the potential processed harvest should be less. They do not plan to replace the old seedlings because the company plans to produce pomegranate juice in the future so these will be delivered to the processing company. The project has been written and partial funding has been received. However, the start date for implementing the project is still unknown due to the COVID-19 pandemic.

According to Jibladze, other pomegranate growers have also appeared in the region and there is heightened interest in this fruit. Khornabuji is often contacted for guidance on proper seedling selection and orchard maintenance procedures. Jibladze thinks that if pomegranate production in the country increases, Georgia should raise awareness at the local and export markets, too. Only then will Georgia be able to compete with Turkish and Azerbaijani pomegranates already established on the market.

In the 2019-2020 marketing year (from September to September), the largest number of pomegranates that came to Georgia was from Azerbaijan ($668,871), followed by Turkey ($545,313). The import price (CIF) of one kilogram of Turkish pomegranates was $0.38 (1.26 GEL) and Azerbaijani pomegranates were $0.3 (1 GEL).

Сообщение Georgian farmers interested in developing pomegranate orchards появились сначала на EastFruit.

The audience of the most popular fruit and vegetable trading group EastFruit Trade Platform continues to grow. Last week, it exceeded 11,200 users, and more than 200 new members joined us in a week. Thank you for inviting your friends and colleagues! Let’s analyze who and what sold on the platform and other EastFruit sites during this period.

The number of advertisements for the sale of fruit and vegetable products decreased slightly last week. Representatives of 14 countries sold their products on the site. Most of the proposals came from participants from Russia. The five most active countries also include Uzbekistan, Belarus, Ukraine, and Egypt. Besides, if Uzbekistan participants reduced the number of proposals by 25%, then representatives of Belarus and Ukraine increased their activity by one and a half times.

In the vegetable segment, most of the advertisements were for the sale of potatoes and onions. Sales of carrots and beets increased slightly. For the second week in a row, the supply of bell peppers is growing. The number of ads for the sale of pumpkin has more than doubled, which allowed it to get into our top. The interesting ads offered for sale kale, the popularity of which has been rapidly growing lately.

As soon as this product is not called, it is known, by the way, in our countries for many years under the modest name “curly cabbage.” However, “curly cabbage” is undoubtedly more challenging to sell than a superfood called “kale.” Less commonly, you can find the name “bruncol,” “browncol,” or “gruncol,” but they are all the same product.

Despite a decrease in supply, apple sales are in the lead in the fruit and berry segment. The supply of table grapes, watermelon, and melons has significantly decreased. Due to this, our top’s second position was unexpectedly taken by a pomegranate, which Uzbekistan and Egypt representatives actively began to offer. There was an ample supply of persimmons and plums. Participants also started offering fresh cranberries for sale.

As for the advertisements for the purchase of vegetable products, onions were in the greatest demand last week. The participants also actively searched for potatoes and tomatoes. In the fruit segment, as in the previous week, requests for purchasing apples prevailed. Raspberries were also in high demand. Participants also searched for asparagus and hazelnuts.

In the EastFruit Fruittechnology technology group, fertilizer announcements prevailed. The supply of seedlings has increased. They actively offered apple, blueberry, raspberry, blackberry seedlings, and cluster seedlings of garden strawberries. There were offerings of onion and garlic seeds. We also sold refrigeration equipment.

On the Russian market, only onion has risen in price from fruit and vegetable products. The increase in the supply of pumpkin and bell peppers has led to a decrease in their prices. Carrots and cabbage also became cheaper. Participants also reduced prices for tomatoes and Chinese cabbage. In the fruit and berry segment, prices for apples and plums decreased. Watermelons also fell in price.

On the trading platforms of Ukraine in the vegetable segment, only beets and cabbage rose in price. The prices for cucumbers and radishes went down. Of the tomatoes, only red varieties fell in price. Red hot pepper has dropped in price by 5-10 UAH / kg. Producers have reduced the selling prices of zucchini, eggplant, and cauliflower. The increase in pumpkin supply adjusted its prices downwards. Greens such as onions, dill, basil, and salad have become cheaper.

In the fruit and berry segment, changes in prices are not so significant. It is possible to highlight the rise in prices for peaches, melons, and garden strawberries. Dogwood fell in price.

As for the prices in other countries, in Kazakhstan, sellers asked 35 tenges for onions, 60 tenges for beets, 70 tenges for carrots, and potatoes. Belarusian producers sold potatoes, carrots, cabbage at 11 rubles, and beets at 9 rubles per kg.

Сообщение Pumpkin and pomegranate, kale and cranberry are among the proposals, but apples, potatoes and onions are out of competition – analysis of marketplaces for a week появились сначала на EastFruit.