Uzbekistan imported 4 400 tonnes of kiwi in 2021, which is twice more than in 2020. However, if we take into account that the volume of kiwi imports decreased by 46% in the “pandemic” 2020, it turns out that the imports in 2021 increased by 7% compared to the “pre-pandemic” 2019, EastFruit analysts note.

According to the State Statistics Committee, about 95% of kiwis imported to Uzbekistan in 2021 were supplied by three countries – Iran (77.3%), Pakistan (8.9%) and Turkey (8.4%). At the same time, all three main kiwi suppliers managed to significantly increase their exports to Uzbekistan in 2021:

– The volume of kiwi supplies from Iran to Uzbekistan in physical terms amounted to 3 400 tonnes, an increase by 120% compared to 2020, and of 7% compared to 2019.

– Kiwi imports from Pakistan in 2021 amounted to 392 tonnes in volume, an increase of 32% compared to 2020 and 5% compared to 2019.

– Turkey delivered 368 tonnes of kiwi to Uzbekistan, which is 25% more than in 2020 and 9% more than in 2019.

It is worth noting that EastFruit analysts have repeatedly pointed out that kiwi can be quite successfully grown not only for domestic consumption in Uzbekistan, but also for export.

We remind you that the decision of the government of Uzbekistan to exempt the import of a number of fruits, including kiwi, from customs duties was announced on October 21, 2021. Obviously, the decision is one of the factors contributing to the increase in import volumes of these fruits, including kiwi.

Сообщение Uzbekistan doubled kiwi imports in 2021 появились сначала на EastFruit.

The average wholesale banana prices in Uzbekistan have decreased by 18% over the past two weeks and the current levels are the lowest if compared to the same dates in 2021 and 2020, EastFruit analysts say.

According to EastFruit price monitoring, the average wholesale prices for bananas decreased from 17 000 to 14 000 UZS/kg (from $1.6 to 1.3) from January 7 to January 21, 2022, i.e. by 18%. Moreover, the current levels of wholesale prices are much lower compared to those on the same date in previous years. As of January 21, 2022, the average wholesale banana prices in Uzbekistan are 22% lower than on the same date in 2021 and 13% lower than in 2020.

The main factor in such dynamics of banana prices in Uzbekistan is the elimination of customs duties on their imports. We remind you that in October 2021, the government of the country decided to stimulate the imports of a number of fruits, exempting them from import duties. Banana was also included in the list. As a result, the reduction in import duties allowed the country’s consumers to buy this product not grown in Uzbekistan at a much lower price.

The government decision served as an additional incentive for the growth of banana consumption in Uzbekistan in the last months of 2021 and early 2022, since import statistics showed a solid increase in banana imports to Uzbekistan even before October 2021. In January-October 2021, Uzbekistan imported 58.6 thousand tonnes of bananas, which is 60% more than in total in 2020 and exceeded imports in 2019 by 37%. EastFruit analysts identified three reasons for such a solid increase in banana consumption in Uzbekistan in 2021.

The sharp increase in banana consumption in Uzbekistan was also noted by EastFruit experts as one of the TOP-10 main fruit and vegetable events of 2021.

According to preliminary estimates by EastFruit analysts, the upward trend in banana consumption in Uzbekistan continued in the first half of January this year. From January 1 to January 17, 2022, the volume of banana imports amounted to 7.3 thousand tonnes, which is 18% more than for in total in January 2021 and almost 2 times more than in January 2020.

Сообщение Banana prices in Uzbekistan have fallen by 18% over the past two weeks появились сначала на EastFruit.

At the end of August 2021, EastFruit wrote that Uzbekistan could set the record for orange imports in 2021, set in the pre-pandemic 2019. Analysts rated this probability quite high. Preliminary statistics confirm that the volume of orange imports was 50% higher last year than in 2019 and reached a maximum over the past 5 years.

According to EastFruit analysts, Uzbekistan imported 7.9 thousand tonnes of oranges in 2021, which is 110% more than in 2020 and 55% more than in 2019.

However, the absolute value of the import volume, as well as the per capita consumption of oranges in the country, remain lower compared to other countries.

The decision of the government of Uzbekistan adopted on October 7, 2021 to exempt the imports of a number of fruits, which included citrus fruits, from customs duties also contributed to the record high orange imports. Prior to the adoption of the decision, a customs duty rate of 10–20% was applied when importing these fruits, but not less than $0.2/kg.

The government’s decision to zero import duties was an additional factor in increasing imports. A few months before the decision was made, in January-July 2021, Uzbekistan imported 4.2 thousand tonnes of oranges, which is much more than in 12 months of 2017, 2018 and 2020.

As of January 14, 2022, the average wholesale prices for oranges in Uzbekistan are 15 000 UZS/kg ($1.4), which is 25% lower than on the same date in 2021. If we take into account the sharp increase in logistics costs over the past year, this result exceeds all expectations, EastFruit analysts say. It is certainly very positive for Uzbek consumers, as oranges cannot be grown in large volumes due to climatic conditions there.

The main countries supplying oranges to Uzbekistan are Turkey, Egypt and South Africa, which together account for more than 80% of all imports in 2021. About 12-15% were imported from Kazakhstan. Given that Kazakhstan is not a producer of oranges, it seems that it was re-exports.

Сообщение Uzbekistan imported a record volume of oranges in 2021 появились сначала на EastFruit.

On January 11, 2022, the upper house of the Uzbek parliament approved a draft law whereby tax incentives for the imports and sale of a number of food products, including potatoes, will be extended until April 30, 2022, EastFruit experts report.

On October 21, 2021, with the view to restraining the rise in potato prices in the domestic market, the Senate of the Oliy Majlis (upper house of parliament) approved a law on amendments to the Tax Code, providing for a zero value added tax (VAT) on the import and sale of a number of food products, including potatoes. According to the document, imports and sales of these goods were exempted from VAT from October 10 to December 31, 2021.

Upon the expiration of these tax benefits, the country’s upper house of parliament approved a law on amending the Tax Code on January 11, 2022. It provides for the exemption of the imports and sale of a number of food products, including potatoes, from VAT until April 30, 2022.

From the beginning of January to the end of September 2021, the dynamics of average wholesale prices for potatoes was similar to the previous year, and prices were about the same as in 2020. But due to the rush in the potato market in Russia, potatoes in Uzbekistan began to rise in price as a domino effect at the end of September 2021. Three weeks later, the average wholesale prices for potatoes increased from 3 500 to 5 000 UZS/kg ($0.33-0.47), i.e. by 43%, in just one week – from October 14 to October 21, 2021.

The decision to exempt the imports and sale of potatoes from VAT adopted on October 21, 2021 served as a factor restraining further growth in potato prices in the domestic market. Average wholesale prices for potatoes in Uzbekistan ranged from 4 500 to 5 000 UZS/kg ($0.42-0.51) from November 4, 2021 to January 7, 2022.

As of January 7, 2022, the average wholesale prices for potatoes were 5 000 UZS/kg ($0.46), which is almost 1.5 times higher than on the same date in 2020 and 2.3 times higher than on the same date in 2019.

In 2021, imports of potatoes to Uzbekistan exceeded half a million tonnes for the first time, setting a new record. According to EastFruit analysts, the country imported 559,100 tonnes of potatoes in 2021, which is 33% more than in 2020.

Potatoes have become the main import commodity in Uzbekistan’s fruit and vegetable sector over the past few years. Until 2016, the annual imports volume of potatoes did not exceed 50 thousand tonnes per year, and in 2017 the imports amounted to 194 thousand tonnes. Accordingly, the volume of imports increased almost by 3 times from 2017 to 2021.

Сообщение Uzbekistan extended tax incentives for imports and sale of potatoes появились сначала на EastFruit.

During the next retail audit of supermarket produce departments, EastFruit analysts draw attention to the fact that many consumers in Uzbekistan believe that fruits and vegetables can be bought much cheaper at a bazaar or stall than in a supermarket. We decided to test this hypothesis and found some very unexpected pricing features that we wanted to share:

Feature 1: There are no price tags for vegetables and fruits in bazaars or stalls in Uzbekistan. For those, the price can only be obtained by asking the seller. Thus, the process of selling products here is slow compared to a supermarket so it seems that trade is going very well. After all, someone is almost always waiting for their turn to find out a price. This first feature gives the deceptive impression of high demand. Whereas in a supermarket, a person knows the price, simply takes the product and moves on.

Read about the specifics of the fruit and vegetable trade in supermarkets in Uzbekistan in EastFruit’s interview with Makro CEO Roman Sayfulin

Feature 2: This most interesting feature appeared immediately. After observing the sellers, we found that the seller often names different prices depending on who asks. Therefore, the first surprise is that there are no prices listed for produce in the bazaar or stall and then the price depends on the personality of the buyer. Let’s remind that in the supermarket the prices for the products are fixed and known by all.

Feature 3: Each seller has his or her own pricing strategy so the divergence in named prices can range from 10% to 20% or more! Thus, the same product in the same place can be relatively cheap and very expensive. One gets the impression that the seller evaluates each customer in terms of appearance and behaviour then estimates how much they can really pay. Again, there is nothing like this in the supermarket – the price is the same for everyone.

Read also: Carrefour in Uzbekistan strikes a blow to the prices of vegetables and fruits

Feature 4: This pricing feature is well known in Uzbekistan. It attracts some but repels others. It is the fact that you can bargain at the bazaar. Almost as much as those who like to bargain, others do not.

Feature 5: Sometimes products are sold on credit at stalls and in bazaars, which is an advantage over supermarkets for poor segments of the population.

Feature 6: If you seem to the seller as a person with a low-income level and you bargain well, most likely you will be able to buy local products cheaper than in a supermarket, but imported products of comparable quality are usually more expensive anyway. This is due to the fact that sellers in bazaars and stalls do not pay VAT, which gives them a significant advantage in local goods. When importing, VAT is levied immediately and, unlike traders in the bazaar, supermarkets that are VAT payers can return the input VAT so here they already have an advantage over the bazaars.

Why imported vegetables and fruits are cheaper in supermarkets – watch our interview with Makro CEO Roman Sayfulin

Feature 7: There is a wide range of local products in the bazaars. It is difficult to find such an extensive assortment of local products in stores for every taste and every wallet. Yet, imported assortments will be comparable.

Feature 8:  This feature is the most unpleasant in the opinion of Uzbek consumers – cheating at the bazaars. Often the weighing scales are not calibrated accurately and customers are charged a heavier weight than the actual weight of the produce. Also, low-quality fruits and vegetables get placed in the bag because it is collected by the seller. Whereas in the supermarket, cheating with scales does not exist and the desired product’s quality is selected by the consumer directly.

The above features fully explain why traditional bazaars are now losing the competition to supermarkets in Uzbekistan. The wealthiest segments of the population who simply do not have time to walk around the market, wait for their turn, bargain for each product, and pay more for imported vegetables and fruits (which dominate the market in winter), will choose supermarkets and convenience stores. Yet, it is this category of customers that provides the main revenue. One high-income customer often generates more profit than 10 low-income customers. In addition, they do not need goods on credit and they are willing to pay for additional conveniences such as more comfortable shopping conditions as well as guaranteed quality awareness and lack of cheating. A demanding and wealthy customer in Uzbekistan can spend less time and less money by purchasing the necessary range of vegetables and fruits in more comfortable conditions. Also, this is without taking into account the cost of their time, which is quite expensive for working people. With an income of even 5 million soums a month (about $500), the cost of one hour is about 30,000 soums.

On the other hand, a poor customer who has plenty of free time, most likely with the right amount of luck, can save money if he wants to buy locally produced vegetables and fruits at the bazaar and not in the supermarket. The likelihood of saving on the market in winter will be lower than in summer when there are many vegetables, fruits, and potatoes grown in Uzbekistan and few imported products.

Сообщение Are prices higher for fruits and vegetables at bazaars or supermarkets in Uzbekistan? The answer will surprise! появились сначала на EastFruit.