EastFruit analysts note a record high import of tomatoes to Georgia in December 2021. The volume of imports in the last month of 2021 amounted to 2 170 tonnes. The prices for imported tomatoes remained low, which was a key factor in the market.

Tomato imports in December 2021 were 50% higher than in December 2020, despite almost equal prices. The reason for this is an increase in demand in 2021 due to easing of COVID-19 restrictions. Compared to the December 2014-2020 average, imports in December 2021 are 42% higher.

Local sources report that imported tomato prices remained low in December. As a result, wholesale prices for red tomatoes in Georgia averaged about $0.55/kg, which is $0.25-0.30 lower than in December 2019-2020. The wholesale price for pink tomatoes averaged $1.13/kg, which is about $0.10-0.30 lower than in December 2019-2020.

In total, Georgia imported 19 400 tonnes of tomatoes in 2021 – the third largest volume ever. This was facilitated by lower import prices in dollars – the trend towards cheaper imported tomatoes continued in 2021. In addition to the decline in prices, a poor harvest in the open field contributed to the growth of imports in 2021.

Сообщение Georgia imported a record volume of tomatoes in December 2021 появились сначала на EastFruit.

Georgia continues to actively import Turkish tomatoes to cover the supply deficit. The imports of fresh tomatoes in November amounted to 1.360 tonnes. This is 3 times more than the average import volume and the highest figure in November in the last 7 years. Since Turkish tomatoes are cheap, local prices declined.

EastFruit analysts found that red tomatoes from Georgian greenhouses are sold 82% more expensive than red tomatoes imported from Turkey. However, a key factor in such a huge difference is that red tomatoes from Georgian greenhouses are positioned as high-quality and are aimed at wealthier buyers. Moreover, almost all greenhouses in Georgia grow pink tomatoes. They are available at a price 17% higher than Turkish ones.

According to EastFruit monitoring results, the average price of red tomatoes in the wholesale markets of Georgia amounted to $0.70 per kilogram last week. Due to competition from imports, the average price dropped for 3 weeks in a row. However, the price was 56% higher last week than the same period in 2020, but 8% lower compared to the same week in 2019. If this trend continues, 2021 prices will lag behind 2020 prices in a week or two.

Two weeks ago, the average price for pink tomatoes fell to $0.95, but has since increased slightly. They were offered at $1.11 last week, which is 6% higher than the same week of 2020 but 23% lower than 2019. Three weeks ago, these tomatoes were sold at $1.27 average, but prices fell below that mark. Sellers are trying to raise prices, but are acting cautiously.

Notably, fresh tomatoes from Turkey were imported at $0.32 per kilogram in November, which is a fairly low price. Whether imported tomato will remain cheap is unclear. The ongoing global energy crisis could lead to an increase in import prices.

Сообщение Tomatoes prices in Georgia decline amid growing imports of Turkish tomatoes появились сначала на EastFruit.

EastFruit analysts are expressing concern about the situation in the greenhouse business in the region due to the record high global prices for gas and other energy sources.

Naturally, this could affect Uzbekistan that on one hand, can have advantages in the greenhouse business as a rather warm country and even a gas exporter, if there is a wise state policy. On the other hand, it will also face an issue of an inevitable rise in prices for greenhouse vegetables, in particular for tomatoes. This will not be well taken by local consumers, whose income level is relatively low compared to Russia, where most of the greenhouse vegetables are exported.

Wholesale prices for red beef tomatoes increased by 75% in Uzbekistan over the past 7 weeks and were 2.3 times higher than at the same time in 2020. Prices for red round tomatoes rose by 43% in 3 weeks and were 4 times higher than at the same time last year.

Most likely, the price rise in Uzbekistan is not yet caused by the rise in the cost of energy resources, but by the rapid increase in tomato prices in Russia in recent weeks. As you can see in the chart below, the prices of greenhouse tomatoes in the Russian market are also twice as high as last year, and approximately twice as high as usual prices at this time of the year. Since Russia imports tomatoes, as well as from Uzbekistan, the situation in Russia has a direct impact on prices in Uzbekistan.

As we can see, the correlation between tomato prices in Uzbekistan and Russia is quite obvious. We also see from the chart below that Uzbekistan has not yet reached the full potential of growth in tomato prices, since prices on the Russian market are growing faster than on the Uzbek market.

The wholesale price for red round tomatoes in Uzbekistan is about 5,000 UZS ($0.47/kg), but retail prices for tomatoes in Uzbekistan are already high. For example, red round tomatoes are sold at 17,590 UZS ($1.64) in the Makro supermarket chain. This is a record high price for this time of the year. For more expensive types of tomatoes, for instance, pink tomatoes, you need to pay more than $2.3.

Considering that prices for greenhouse tomatoes in Uzbekistan and other countries of the region usually begin to grow rapidly in November-December, they may turn out to be too expensive for local consumers on the eve of New Year’s holidays. It should also be noted that the rate of price growth may well turn out to be higher than ever before, as the production of greenhouse tomatoes may decline almost everywhere in the world due to the gas price crisis.

Here is one of the advantages of Uzbekistan. If the country’s greenhouses get access to gas, Uzbekistan can sharply increase export earnings from products with high added value. Moreover, it will be able to expand export geography and gain a foothold in more demanding markets with a high price level and paying capacity of the population. This will allow to diversify exports and reduce dependence on supplies to the Russian market. A detailed analysis of what is more profitable for Uzbekistan to export, gas or greenhouse tomatoes grown using gas, is available in the article “Why is Uzbekistan killing their successful greenhouse industry?”.

These positions, even after the subsequent normalization of energy prices, will be easier to maintain. The conditions for the conquest of new greenhouse markets are relatively favorable now. For example, record prices for greenhouse vegetables are forecasted in Ukraine in the winter-spring period. A similar situation is expected in other countries of Eastern and Western Europe.

However, it is important for greenhouses in Uzbekistan not to forget about the safety and quality of the supplied products, and to reinvest the additional profit in their improvement. This will allow the country to gain a foothold in new export markets and create good preconditions for the further development of the highest technological and innovative segment of agriculture, such as the greenhouse business.

Сообщение Prices for greenhouse tomatoes in Uzbekistan hit record highs and keep growing rapidly появились сначала на EastFruit.