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.

Retailers and entrepreneurs together provide 55% of all sales of fresh fruits and vegetables on the Ukrainian market. Unorganized trade accounts for the rest, EastFruit reports. Thus, about half of the trade in fruits and vegetables in the country, or 35 billion UAH every year are not reflected in any trade statistics. They go through uncontrolled markets, that means direct competitors of the retail business.

This data from the first study of retail trade in fresh fruit and vegetables was announced by Andriy Pankratov, analyst of agricultural markets, international consultant to the Food and Agriculture Organization of the United Nations (FAO), during the First International Retail Forum. It was held within the framework of #FTrade Club 2021 in Kyiv in early December 2021. According to the FAO study, retail chains account for only about 40% of all trade in fresh vegetables and fruits.

The share of self-sufficiency of households in fruit and vegetables is falling and this is a positive sign for professional market players.

As Andriy Pankratov noted in his presentation, only retail allows converting the efforts and expenses of a farmer into money. And it is the retail trade in vegetables and fruits that shapes the trends influencing the business of farmers. This is why the FAO team has always paid so much attention to this: it audits the produce departments of supermarkets, monitors industry news and analyzes retail statistics. FAO experts identified several key features of the Ukrainian market in the study of fruit and vegetable retail of Ukraine.

Firstly, people grow themselves about a third of the fresh vegetables and fruits consumed in Ukraine This was concluded by analyzing the data of a household survey by the State Statistics Service of Ukraine. In monetary terms, this is about 54 billion UAH per year. This amount represents the growth potential of retail trade in fruits and vegetables in Ukraine, not taking into account the possible increase in the level of income of the population.

Although the share of self-sufficiency in vegetables and fruits of Ukrainian households is declining, it remains quite high. According to Andriy Pankratov, to use this potential, retailers should offer such products and in such a way that consumers do not have the need or desire to grow them.

Another important feature is the fact that uncontrolled trade in fresh fruits and vegetables accounts for about half of all retail sales. These are cash sales in markets, which are not reflected in any statistics. As a rule, the whole process, from the purchase of materials and equipment for production, to wholesale and retail sales, is done in cash.

This “cash” segment of the fruit and vegetable trade also continues to decline. It was in 2020 that it dropped below 50% for the first time and amounted to 45%. About 55% of sales, respectively, were provided by retailers and entrepreneurs under the common and simplified taxation system.

The potential for the development of retail trade in fruit and vegetables is still huge.

Moreover, another phenomenon has recently appeared – online trade in fresh fruits, vegetables, berries and herbs. The online sales segment is now developing much faster than traditional supermarkets.

The 2021 Retail Forum gathered more than 200 leading representatives of the Ukrainian fruit and vegetable trade. The event was organized by the project “APK-Inform: Vegetables and Fruits” with the support of the Food and Agriculture Organization of the United Nations and the European Bank for Reconstruction and Development (EBRD). Information partners of the event are the EastFruit International Analytical Platform and the Ukrainian Horticultural Association (UHA).

Сообщение Around 35 billion UAH from the sale of fruits and vegetables are not accounted for in any statistics in Ukraine 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.

According to EastFruit analysts, apple exports from Ukraine in September 2021 increased by 2.3 times compared to September 2020. In September 2018, when prices fell to record lows and the apple harvest in Ukraine was also a record one, exports were slightly higher than this year. However, the apple exports volume in September 2021 can be considered a record one, given the more than two-week delay in the start of harvesting of the first export variety “Gala” in Ukraine.

In other words, Ukrainian growers and traders exported almost as many apples in 1.5-2 weeks in September 2021 as in 2018. At the same time, the geography of apple exports from Ukraine in September 2021 was slightly narrower than in September 2018 – Ukrainian apples were sent to only 12 countries, while in 2018 deliveries were made to 15 countries.

The narrowing of the export geography can be explained by the delayed start of apple harvesting. The fact is that apples intended for distant countries, where products are delivered in sea containers, must be cooled to a conditioned temperature after harvesting and treated with an ethylene inhibitor. Apples are then sorted and packaged for shipment. Accordingly, it takes several days before apples will be able to withstand transportation to countries in the Middle East, Asia or Africa. Another factor is the physical availability and cost of shipping containers. There are huge problems with this in 2021.

Therefore, the fact that Ukrainian exporters managed to ship more than 350 tonnes of apples in sea containers to distant countries of Asia, the Middle East and Africa in September is very indicative. The exports of apples from Ukraine allowed to earn on average 1.5 to 2 times more than selling them on the domestic market, as representatives of the export platform of the Ukrainian Horticultural Association estimated. Therefore, we expect further dynamic growth in the exports of Ukrainian apples in the coming months and the expansion of its geography.

Сообщение Apple exports from Ukraine in September 2021 were close to a record, despite a later start of harvest появились сначала на EastFruit.

There is an essential aspect in the investment in any industry, including horticulture: you should always strive to be number 1 or number 2 in the market. However, leadership does not have to be in the industry – a market participant can create his own niche or segment where he can work comfortably with minimal competition.

Considering that there are tens of thousands of fruit and vegetable growers on the market, how can they become number 1 or number 2? It’s very simple – instead of competing with each other, growers can work in the market together. Cooperation is a real fast track for the development of the Ukrainian fruit and vegetable industry.

This opinion was expressed by Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), during the 17th international conference “Fruits and Vegetables of Ukraine-2021. New investment opportunities”. The event was organized by the APK-Inform: Vegetables and Fruits project with the information support of the International Platform EastFruit and the Ukrainian Horticultural Association (UHA).

When fruit and vegetable market players complain that the state does not pay enough attention to the sector and does not help to open new sales markets, it should be remembered that this sector is the least attractive for the state in terms of exports. It is also less attractive to investors. When a large investor chooses a country or industry to invest, he wants to invest a lot of money in order to earn even more in the future. However, the fruit and vegetable sector of Ukraine consists of many small and very small players, which are not interesting for a large investor, especially when there is a chance to invest in the grain or oilseed industry. The level of market, weather and technological risks in the cultivation and sale of vegetables, fruits and berries is several times higher than for most other agricultural products.

“In addition, the agricultural land market has now opened in Ukraine. Many investors prefer to buy land than invest their funds in growing vegetables and fruits. The next problem is the sharp rise in global prices for grains and oilseeds, which has made their cultivation a much more profitable business. Therefore, even small farmers in Ukraine often wonder: why grow onions or potatoes, if it is easier to sow wheat or corn and get a comparable income from 1 hectare, without worrying that the harvest will deteriorate during storage or prices will plummet. Instead, prices for grains never fall as sharply as prices for potatoes or other vegetables. In the case of grains, there are also many traders in the market who are always ready to buy the crop, while the sales of onions of potatoes is problematic in the years of their overproduction.

With this in mind, horticultural growers should remember that they operate in a small and very specific sector where size matters. Overcoming many of these obstacles, reducing business risks and increasing sales prices is possible only by combining efforts – cooperation and more active participation in industry associations.” Andriy Yarmak explains.

The economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO) also notes that there are niches in the fruit and vegetable sector in almost all segments, but without cooperation of growers in the industry, none of them will develop actively enough.

“The fact is that these segments are very small in terms of their volumes, and importers want to work with large systemic players. A producer can be big, but not have systematic work to ensure sustainable product quality and good relations with importers – this is very important. And cooperation itself is a fast path to development.” explains Andriy Yarmak.

The specialist also gave an example of the creation in Ukraine of the first UHA trading platform operating on the principle of open accounting.

“It helps growers not only with exports but also with the sales to the trade chains of Ukraine. Each producer participating in the platform can sell their products there, paying only a small percentage for the development of the project. We recently agreed that this platform will form its own fund used to pay for product marketing needs – the opportunity of growers to take part in trade missions, exhibitions, as well as advertising. This platform is a practical confirmation that cooperation in the fruit and vegetable sector works, and the formats can be various,” Andriy Yarmak notes.

Andriy Yarmak also reports that very often Ukrainian farmers ask themselves the question: what to grow? “But this is the wrong approach. The question should not be what to grow, but how to grow, where and why. If a producer aims only to make money, then, as a rule, he will not be successful. After all, money should be a consequence of the success of a business and a business cannot fail to make money,” the expert sums up.

Сообщение Cooperation is a way to accelerate the development of the Ukrainian fruit and vegetable industry появились сначала на EastFruit.

According to EastFruit analysts, a milestone event took place in the berry business in Ukraine in 2021 – large volume of Ukrainian frozen raspberries was exported to the United States and Canada for the first time.

Ukrainian Horticultural Association (UHA) clarified for us the details of this important deal – one batch of raspberries was sent to Canada and one to the United States in the amount of one sea container. The logistics took around one and a half months, and the buyer was satisfied with the quality of the supplied products and is considering cooperation with Ukrainian suppliers on a regular basis.

The importance of this event for the development of production and freezing of berries in Ukraine is explained by the high level of requirements for product quality and logistics, which were successfully overcome by Ukrainian suppliers. Accordingly, the Ukrainian raspberry exporter has previously successfully passed the FDA (The United States Food and Drug Administration) certification.

The second important point of this event is that the United States and Canada traditionally pay higher prices for imported raspberries than other large importing countries, which creates good opportunities for Ukrainian exporters to invest in improving product quality. Naturally, the higher import price is due to the high-quality parameters of the products. The FDA returns products that do not meet their standards and safety requirements at the expense of the supplier and publishes full information about the issue, including the name of the exporting company. Therefore, it is crucial for the reputation of the exporting country and supplying company to comply with the requirements.

“The USA and Canada account for around 80% of all global imports of frozen raspberries in value terms and around 65% in physical terms. However, Ukraine has traditionally exported frozen raspberries mainly to Poland, which makes good money on re-exporting Ukrainian raspberries. Therefore, access to direct deliveries of frozen raspberries to countries with high import prices for raspberries is a very important step for the further development of the berry business in Ukraine. Indeed, Ukrainian berry freezers will be able to increase the technological level of processing and refinement of frozen raspberries and pay a higher price to suppliers, and they, in turn, will improve the quality of raw materials,” explains Andriy Yarmak, Economist at the Investment Centre, Food and Agriculture Organization of the United Nations (FAO).

We have already written about how many millions of dollars Ukraine loses annually when exporting berries to Poland. Polish re-exporters of Ukrainian berries take this money. However, there has been a positive trend in the diversification of frozen raspberry exports from Ukraine in recent years. In particular, direct export shipments of Ukrainian raspberries to Germany, France, Italy and the Netherlands have grown significantly. The USA and Canada joining the list of importing countries of frozen raspberries will allow to diversify exports even more, especially since Ukrainian producers are planning to significantly expand the area planted with raspberries this year. Read more about this in our article “Raspberry Boom 2“.

Thanks to this successful shipment, the UHA resumed negotiations with the members of the association to create a trading platform for cooperation in fresh and frozen vegetables, fruits and berries export and access to Ukrainian supermarket chains. If such plans are implemented, this could strengthen Ukraine’s position in export markets. However, until recently, Ukrainian exporters failed to come to an agreement.

Note that the US imports frozen raspberries mainly from Chile, Mexico and Serbia. At the same time, Serbia, the world’s largest exporter of frozen raspberries, was actively increasing the supply of its berries to the United States, considering this market one of its priorities. In 2020, Serbia exported more than 10 thousand tons of frozen raspberries to the United States for the first time and almost caught up with Mexico in terms of export volume. For comparison, Poland exported only 281 tons of raspberries to the United States in 2020. The dynamics of the export of Polish frozen raspberries to the United States has remained negative for several years in a row – in 2018, Poland exported more than 400 tons of raspberries to the United States.

Canada imports frozen raspberries from Chile, Serbia, USA and Mexico. Serbia is also increasing its exports to Canada and in 2020 delivered a record volume of frozen raspberries – 6.8 thousand tons. Poland supplies Canada with approximately the same volume of frozen raspberries as the United States.

Accordingly, for Ukraine, which is one of the five largest global exporters of frozen raspberries, it is essential to gain a foothold in these two most important markets. This is especially important given the expected growth in the production of all berries in 2022-2024. It remains to be hoped that not only the volume, but also the quality of the berries produced will grow.

Сообщение Ukrainian raspberries were exported to the United States and Canada for the first time! появились сначала на EastFruit.

During last week’s conference “Berry Growing and Processing: Technologies and Innovations” held on December 10th in Lviv, the President of the Ukrainian Horticulture Association (UHA) Taras Bashtannik predicted that exports of raspberries (primarily frozen) from Ukraine will grow rapidly over the next 5 years. He also noted that large producers and cooperatives will have an advantage in supplying raspberries to foreign markets, which will be able to ensure sufficient volumes, certification, and traceability of products.

In regards to the attractiveness of Ukrainian raspberry exports, Taras Bashtannik gave a comparative description of the prices for berries this season. Ukrainian berry farmers sold fresh raspberries from the field in wholesale markets at an average price of 55 UAH/kg and berries for processing cost in the range of 47-52 UAH/kg. Yet, raspberries for sale in foreign markets in September through October had a price tag of 63-65 UAH/kg as reported by the SEEDS.org.ua and UHA websites.

Mr. Bashtannik also noted that there will be no significant growth in the consumption of berries in the domestic market over the next 5 years. In the absence of any unforeseeable circumstances like this year’s pandemic outbreak, raspberry market prices will no longer be too volatile.

However, Mr. Bashtannik cautions that before initiating a berry farm, one should address three key questions if one hopes to profit in the berry business in the future: “Who are we targeting? Where is the field? What’s next to the field? These are the questions every farmer should know the answers to before planting berries,” the UHA president noted.

Taras Bashtannik also stressed that one of the most crucial decisions for farmers is choosing which raspberry varieties.

“We do not advertise or criticize any varieties. However, it is necessary to clearly understand the requirements for each variety based on cultivation technologies, soil and climatic conditions, and product sales markets. Today, Ukrainian berry farms do not have pronounced varieties instead growing mainly remontant berries. Among the common varieties in Poland are Polka and Polana, but in Serbia, which is one of the leaders of the world raspberry market, they grow Vilamet and Tulamin varieties,” said Taras Bashtannik.

See also: Ukrainian cherries and blueberries are promising exports to China

The UHA President discussed the growing interest in raspberries on the global berry market. The growth of world areas under raspberries went from 92,600 hectares in 2013 to 124,900 hectares in 2018.

When referring to the priority export markets for Ukrainian raspberries during his presentation, he stated they were the countries of the EU, the Middle East, and Asia.

Сообщение EU, Middle East, Asia – priority markets for Ukrainian raspberry exports says UHA появились сначала на EastFruit.

There are no obstacles currently standing in the way of establishing exports of Ukrainian cherries to the Chinese market. However, the volume of premium quality cherries, which is of utmost interest to Chinese consumers, is extremely limited in Ukraine today. In 2018-2019, Ukrainian producers did export cherries to China, but this year export volumes were minimal given the poor harvest in Ukraine. This opinion was expressed by Taras Bashtannik, President of the Ukrainian Horticulture Association (UHA).

Issues related to opportunities, barriers, and risks for Ukrainian fruit and vegetable producers entering the Chinese market will be discussed during the online discussion “Fruit and Vegetable Exports to China: Barriers and Opportunities for Ukrainian Producers“, which will be held on Wednesday, December 16, 2020, at 11:00 a.m. on the Zoom platform. This event is free, but all attendees must register online prior to the event.

UHA President Taras Bashtannik calls blueberries the second most promising fruit product in Ukraine for export to China. However, when speaking about blueberry exports, volumes will not sufficiently increase enough in the next couple years. Several years need to be dedicated to the bureaucratic procedures associated with obtaining permits. “Nevertheless, blueberries are in a promising export position. After all, China is a net importer of this berry,” Taras Bashtannik said.

UHA Development Director Katerina Zvereva notes that blueberries are quite an expensive berry on the foreign market. It can currently be transported to China by air meanwhile UHA specialists are also studying the possibility of coordinating railway transportation since this delivery method is 4-5 times cheaper. Ms. Zvereva notes that the season to supply fresh blueberries from Ukraine is July-September. The main export varieties supplied by Ukrainian producers to foreign markets are Duke, Bluegold, Bluecrop, Elliot, and Liberty.

In addition, the frozen berry segment can be considered as a successful example of Ukrainian fruit products entering the Chinese market, according to the UHA Development Director. “This market was opened for a Ukrainian manufacturer two years ago. Last year, the company Rivneholod exported several thousand tons of products to China. This is a fairly large volume, given that the total annual export volume of Ukrainian frozen berries is 22,000-23,000 tons,” says Kateryna Zvereva.

Taras Golub, Advisor to the Vice Prime Minister of Ukraine on European and Euro-Atlantic Integration, notes, today the issues of establishing food exports are one of the most important. “To speed the establishment of interaction on this topic, we are actively looking for contacts with specialized associations. I see that we have direct opportunities for this. That is why today it is important to understand which priority issues we should focus on,” Taras Golub notes.

In his opinion, it is extremely important to organize a primary dialogue with market players today regarding the establishment of stable exports of Ukrainian products to China. “Firstly, we want to hear their opinions, wishes, and problems. Then, the next stage would be to move on to a substantive dialogue on priority products,” Taras Golub believes.

Read also: China is increasing imports of fruits and vegetables faster than any other country in the world

Mr. Golub also adds that when entering the Chinese market, Ukrainian businesses need to clearly understand their company’s core competencies. “You need to not just look for a partner. It is necessary to establish a network of participants in the chain and maintain good relationships with them so that this chain is not broken. Therefore, today it is important to identify companies interested in exporting certain products to the Chinese market and conduct a dialogue on this issue with the intergovernmental Ukrainian-Chinese commission. After all, if you enlist the support of Chinese government agencies, it will be a completely different level of discussion,” Taras Golub noted.

He also adds that in all likelihood, it is possible to develop a pilot project for the supply of Ukrainian blueberries. “This will be much more effective than attempts by individual companies to discover the Chinese market on their own,” concludes the adviser to the Vice Prime Minister of Ukraine.

Сообщение Ukrainian cherries and blueberries are promising exports to China появились сначала на EastFruit.

Our first article detailed the positive outcomes for the Moldovan village of Costesti and factors leading to their farmers’ success and cooperation. Our second article focused on the technologies for growing and pruning table grapes, including why table grape growers are switching to pergola technology, using special film to cover grapes to protect from rain and hail, and using greenhouses to grow early grapes. In this third and final installment of our series, we will discuss in detail the technologies for storing grapes in refrigerators, size of refrigeration chambers, types of containers and packaging, and demonstrate what a fully automatic production line of veneer boxes looks like.

As you may recall, the 12,000 residents from the Moldovan village of Costesti generates about $30-40 million in proceeds from the sale of grapes, plums, cherries and other fruits and is actively developing cooperation. Their construction of refrigerators for storing late grapes and plums in the village, according to the Head of the Moldovan Table Grape Producers and Exporters Association Ion Sula, began only 15 years ago. Many mistakes were made back then. One of the most common beginner mistakes is building very small refrigerators. As a result, the cost of storage is too high, which negatively affects the return on investment.

Andriy Yarmak, economist at the FAO Investment Department, notes that at the first stage of refrigerator construction for storing table grapes and fruits in Moldova, they were built not by producers, but by resellers and traders who bought table grapes cheaply during harvesting, stored them, and then sold them when it rose in price. This business worked great while the number of storage facilities was insufficient, but it gradually became less profitable.

“The storage for fruits and vegetables is not a separate business, but an integral part of the business of growing and selling fruit and vegetable products. When I say this, especially in countries where refrigerators are in short supply, many grin and they say, ‘we know better – we personally make good money on this.’ However, over time, the storage only grows, and this business dies. Therefore, storage facilities inevitably pass into the hands of producers and their cooperatives. Now, if you grow apples, plums, grapes, onions, potatoes or any other vegetable or fruit subject to long-term storage on an industrial scale, then you simply have to consider not only the cost of planting an orchard or vineyard per 1 hectare, but also the cost of storage per 1 hectare… Moreover, it is necessary to layout the cost of the business as well as the line for sorting, processing and packaging products. And these investments, in most cases, are more than the cost of planting a garden, which makes the cooperation of farmers even more urgent,” states Andriy Yarmak.

During our 2019 study trip to Moldova, EastFruit experts managed to visit the Eco-Fruit Farmers Cooperative. Cooperative members jointly store and sell their produce and provide storage services to other farmers. The cooperative has its own modern storage facility, its own sorting and packaging of products, as well as seven trucks to independently deliver products for export and to consumers in the domestic market. In Moldova, the state returns 50% of investments in storage facilities to cooperatives from the budget, but only after the project is put into operation.

The six members of the cooperative grow not only table grapes, but also plum and cherry orchards. Cherries are sold after refrigeration and plums after storage. In the cooperative’s fruit storage, each chamber holds 80 tons of products, which is equal to four truckloads. In addition, there are specially equipped pre-cooling chambers where 20 tons of grapes can be cooled at a time.

In the video below, you will see what the pre-cooling chamber looks like and how grapes are stored in Moldova.

Fast cooling is achieved thanks to special fans that direct the flow of cold air and remove warm air outside the chamber. The grapes are cooled from approximately 40 degrees Celsius down to 4-6 degrees in just four hours. Then, the grapes are cooled even further to zero degrees in order to be stored for a long time. Additionally, different programs and storage modes are used for different varieties of table grapes.

The modern consumer is more willing to buy table grapes if the branch remains green even after storage because it’s viewed as an indicator of the freshness of the product. Accordingly, the same requirements are imposed by supermarket chains and importers. Therefore, in order to keep the branches green, local producers are actively adapting growing technologies and storage regimes. Also, they are using special bags with sulfur to prevent the development of fungal diseases on grapes.

The use of bags with sulfur for storing grapes is a fairly new trend in Moldova, despite the fact that they have been used for a long time in Central Asian countries as well as the United States and Chile. The vast majority of producers in Moldova use the older method where treatment with sulfur dioxide is carried out directly in the chambers every week. After processing, sulfur dioxide is discharged outside the chamber through special pipes to avoid corrosion of sandwich panels and refrigeration units.

However, the cooling units in the chambers still suffer from sulfur leakage. To prevent the units from corroding, stainless steel is used in Moldova. Although they are expensive, they provide durability to refrigeration equipment.

The grapes are usually harvested in veneer or plywood boxes. The grapes are stored and shipped to consumers in them as well so the need for such boxes in the village of Costesti is very high. EastFruit managed to see a fully automatic line for the production of veneer boxes in operation. The cost of a new line, according to experts, is estimated at around 300,000 euros. Such lines are used in EU countries where labor costs are high. But in countries with low labor costs, as a rule, cheaper semi-automatic lines prevail.

You can see how a fully automatic line for the production of veneer and plywood boxes works in Costesti in the following video:

Fedir Rybalko, Head of the Ukrainian Horticultural Association (UHA) in 2019, notes that the veneer box has its advantages, but it also has disadvantages. For supermarket chains in particular, such packaging is not very convenient because it must be constantly removed from the store and then bear the costs of disposal. “In the EU, this problem is easier to solve. There, due to the absence of borders between countries, pooling systems for recycled plastic containers work well. It is more environmentally friendly and significantly cheaper for both the manufacturer and the supermarket chain. It is still difficult for Moldova to implement such a system, since almost all grown products are forced to cross borders, and it is very difficult to resolve the issue of returning containers, both legally and technically,” says Fedir Rybalko.

Speaking about the development prospects of the fruit business in Costesti, Yuri Khurmuzaki, Deputy Director of the Federation of Farmers of Moldova (FARM), talks about the beginning of effective farmer cooperation as the first important qualitative leap in the development of production and marketing of fruits in the region. In his opinion, the cooperation of producers will increase the productivity of vineyards, the quality of products, their safety and presentability, and hence the price. At the same time, storage costs will decrease due to the enlargement of refrigerators and their modernization.

“If you get more high-quality products, store and sell them better, and at the same time reduce costs, then you earn more. We at FARM think that it is thanks to cooperation that Moldovan grape producers will be able to increase their incomes, which will allow them to start large-scale technological re-equipment, find funds for investment in training and, most importantly, in marketing. We think that Costesti will eventually become a kind of business school for all table grapes growers in Eastern Europe and Central Asia. After all, we are always happy to share our experience and are open to continue learning from others,” says Yuri Khurmuzaki.

The EastFruit project, FAO and the EBRD are grateful to the village of Costesti for their hospitality and openness as well as their desire to share experiences with producers from other countries. We wish this unique village further prosperity and development.

Read also:
Grape capital of Eastern Europe – Costesti, Moldova: village of multimillionaires (part 1)
Grape capital – Costesti, Moldova: protective coverings, pergolas and greenhouses (part 2)

Сообщение Grape capital – Costesti, Moldova: storage and cooling plus veneer box production (part 3) появились сначала на EastFruit.

Potatoes are a very important product for the Ukrainian economy because they create a higher added value than grain crops. In order for a Ukrainian to consume grain, it still needs to be processed. Moreover, grain is a product primarily oriented towards the export market. At the same time, potatoes are a product that is still focused primarily on the domestic market.

This opinion was expressed by the President of the Ukrainian Horticultural Association (UHA) Taras Bashtannik, commenting on the blog of People’s Deputy, Chairman of the Parliamentary Subcommittee on Improving the Structure of Public Administration in the Agro-Industrial Complex Oleg Tarasov “Parliamentary potato pancakes for farmers – instead of helping to overcome the consequences of drought”, which was published today by AgroPolit.

Note that in the blog, the author criticized the allocation of UAH 160 million in support of Ukrainian potato growers, as proposed to the Government by the Agrarian Committee of the Verkhovna Rada in the draft State Budget for 2021. According to the author, these funds should be used to compensate for the losses of farmers who grow grain crops and whose farmland has been affected by the current drought.

According to SEEDS.org.ua and Fruit-Ukraine.org, Taras Bashtannik, after studying such proposals of the MP, identified several issues.

In particular, is there a transparent and proven mechanism for compensating for losses in the cultivation of grain and how to determine the amount of losses and lost profits? Against this background, there will certainly be abuses, Taras Bashtannik is sure.

In addition, as the UHA president notes, according to statistics, the amount of arable land in Ukraine is 42.7 million hectares. If we assume that at least one third of producers suffered from drought, then this is equal to 14.2 million hectares. In this case, another question arises: what is the point of directing UAH 160 million to compensate for losses on the above area, because this is equal to 11 UAH/ha.

“Today there are a lot of producers who grow potatoes inefficiently. Moreover, for two years now we have been importing products from Russia and Belarus, and this year, at the beginning of summer, we started importing potatoes from the Netherlands, and now imports from Poland have also begun. This is due to the fact that in Poland prices and consumption of potatoes by HoReCa and processing segments have dropped significantly due to quarantine lockdowns. Accordingly, large volumes of potatoes ‘put pressure’ on prices, which fall below the cost price.”

In these conditions, in order to meet the challenges of international markets, Ukraine needs to develop a powerful, competitive sector of professional production, storage and processing of potatoes. This will allow the Ukrainian manufacturer not only to engage in highly efficient production, but also to create added value, which will create new jobs and fill the budgets at all levels. In addition, after the start of potato processing, we will be able to carry out import substitution in the processing area. In particular, in the segment of french fries, the consumption is growing at a high rate and is stimulated by urbanization, the development of IT, the acceleration of life,” Taras Bashtannik believes.

According to the UHA president, if Ukraine can replace imported products of this type and export processed products, then the efficiency of agricultural production of potatoes in terms of 1 hectare will be ten times higher than that created by cereals as raw materials. He also noted that the statement about the uselessness of support for the Ukrainian potato industry is unconfirmed by real calculations, because in fact this is a market that forms several billion hryvnias of trade turnover.

Taras Bashtannik also noted that UAH 160 million, which is planned to be allocated to support such areas as storage and processing of potatoes, is actually a small amount on the scale of the industry, because the average investment in 1 ton of vegetable storage is 250-300 euros. That is, we are talking only about building capacities for storing 16,000 tons of products, which, with a potato yield of 70 t/ha, are able to preserve the harvested crop from only 228 hectares.

UHA Development Director Kateryna Zvereva notes that when in the context of support for Ukrainian potato growers it is said about storage facilities, it should be understood that we are talking about their construction.

“As you know, 1 UAH of investment in construction creates 3-4 UAH of additional GDP in related industries. In addition, storage facilities are needed not only to simply build them and store products in them, they are a necessary link in the processing chain. Indeed, during the off-season it is necessary to have a certain stock of products so that the processing facilities are not idle. Thus, people will receive wages, and our exports will develop,” the UHA development director believes, adding that the unprofessional approach to the industry by the people’s representatives, who, without having studied the issue at all, make statements about the uselessness of state support for potato growing is very disappointing.

She also noted that the production of potatoes is a high-margin business, which occurs when there is a complete chain – from production to processing.

“This is the kind of business that needs to be supported, not unprofitable directions in advance. Moreover, against the background of overproduction in Poland, we need support for the potato industry because more powerful economies will maximize its development. For example, in the EU in the near future, 8 billion euros will be allocated to support potato growers. Accordingly, having received this money, European farmers will be able to survive difficult times, retaining their capacities in order to aggressively sell their products on our own market in the future,” Katerina Zvereva expresses her opinion.

Taras Bashtannik, commenting on the expediency of directing funds to compensate farmers affected by the drought, noted that this is, of course, a terrible natural disaster.

“But you need to understand that it is inevitable in the absence of irrigation. Therefore, one should not rely on our good land and agro-technological methods, but we must engage in agricultural insurance in advance and invest in insurance products, in the creation of drip irrigation systems for crops and plantations. There has always been drought in the south of Ukraine, and in some regions there are no years at all when it is absent. But the people there have learned to combat this problem by investing in irrigation. The fact that this year the drought affected the central regions of Ukraine indicates, in particular, that the producers were not ready for this phenomenon. In fact, we must admit that the climate has changed significantly, and it will continue to change. Therefore, droughts will recur in central Ukraine over the next 10 years,” the UHA president said.

He also noted that, of course, state support of the industry alone will not solve all the issues of Ukrainian potato growers.

“The problem is more global and requires a comprehensive solution. Therefore, the UHA proposal is to study the issue and hold a broad discussion on the development of potato growing with representatives of specialized associations; the Ministry of Economic Development, Trade and Agriculture; and the Agrarian Committee of the Parliament,” summed up Taras Bashtannik.

Сообщение UHA: Statement about uselessness of state support for Ukrainian potato industry unconfirmed by real calculations появились сначала на EastFruit.