According to EastFruit analysts, two Central Asian countries, Uzbekistan and Turkmenistan, have increased their imports of Iranian apples many times over in the first 4 months of 2022.

Turkmenistan entered the Top-5 largest importers of Iranian apples in the world during this period, having purchased 19 500 tonnes of apples in Iran. For comparison, imports in the same period last year were 22 times less. Uzbekistan ranked 6^th among apple importers from Iran having imported 13 000 tonnes of apples in 4 months, which is 21 times more than in the same period in 2021.

Read also: Uzbekistan became the fastest growing market for fruits and vegetables from Iran in 2021

“The volume of apple exports from Iran in the first months of 2022 lags behind last year by about 19%, which is due to a decrease in the apple harvest in the country in 2021 caused by spring frosts. However, exports to Central Asian countries, where there were also frosts and reduced harvest, rose sharply as prices were high there. An additional incentive for the growth of supplies was the cessation of apple exports from Ukraine at the end of February, after russia invaded Ukraine with its army and blocked supplies,” explains Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).

In addition to Uzbekistan and Turkmenistan, importers from the UAE (by 42%), Pakistan (by 75%) and Kuwait (by 73%) also increased the volume of purchases of Iranian apples in 2022. A decrease in apple exports from Iran to such large markets as Iraq, India and Russia was noted.

Сообщение Uzbekistan and Turkmenistan significantly increased apple imports from Iran in 2022 появились сначала на EastFruit.

Andriy Yarmak, agricultural market analyst with 30 years of experience, analyzes the information about food surplus in Ukraine.

I do not understand the excessive optimism voiced by some agribusiness experts regarding the large stocks of grain and vegetable oils in Ukraine. They are going as far as to say that stocks are sufficient to feed Ukraine for a few years! Therefore, I want to clarify the real situation with respect to the food security of Ukraine are and what it means for the near future.

1. Stocks of grains and vegetable oils in Ukraine, are now also feeding the russian occupiers, because a lot of these stocks are concentrated in the temporarily occupied territories of the country. The occupiers steal it from farmers to feed their army and to profit.
2. The quality of grains and especially vegetable oils deteriorate during storage. If storage conditions are not optimal, this process would accelerate significantly. As we all know, conditions for storing products are far from optimal in many regions of Ukraine now due to lack of electricity and personnel. Therefore, a large part of this food will be thrown away already in May, when it gets much warmer. What kind of “long-term” stocks are we talking about?!
3. The stocks we have represent a heavy burden for the farmers, instead providing them with the money. After all, farmers must ensure a new production cycle with earned from selling these stocks and the loans obtained from the banks. However, instead of getting the money, farmers are spending the money on trying to store grains, oilseeds and vegoils.
4. Without the sea ports, Ukraine will only be able to export only 10-20% of the grains, oilseeds and vegetable oils at the very optimistic scenario. Even if the war ends now, Ukraine is unlikely to resume exports through ports unto the end of the year. Unfortunately, the infrastructure, including bridges, roads, elevators, railroads, etc. has been destroyed in many regions. Accordingly, farmers who are now heroically preparing for the sowing season with very scares resources also have very grim chances of selling their new crop.
5. I hope that we all understand that it is unreasonable to rejoice in excessive stocks of grains and oils.
6. Let also discuss the diet of Ukrainians. I do not expect anyone to be happy eating only bread and vegetable oil. What about vegetables, fruits, meat, milk, eggs, fish?
7. Livestock business is extremely sensitive to ideal logistics solutions: timely regular supply of veterinarian medicine and services, feed components, maintaining a microclimate in the barns, having access to timely financing, timely sales of finished products for processing, fast logistics of chilled finished products – any failure of the system may result in bankruptcy of the business. In most of the regions of Ukraine livestock business is under a serious threat now, especially in the occupied or surrounded territories with active fighting. Some farmers have already been destroyed.
8. As for the vegetables and fruits, this business is very labor intensive. As of today, more than 3mn people have left Ukraine already. Thus, Ukrainian farmers do not know where to find to work in the fields and orchards already. It is even less clear what will they do when the harvesting time comes. And then the harvest should be quickly exported as fresh produce is a very perishable produce. The risks in this already high risk sector in Ukraine are now much higher than ever.
9. Major share of stocks of onions and other vegetables are in the temporarily occupied areas of the Kherson oblast. They are kept in storages without electricity and, naturally, deteriorate very quickly. Also, the marketing season of early vegetables from plastic greenhouses in the south should begin now. This business “feeds” hundreds of thousands of people in the South, and the products are supplied to all other regions. Needless to say that this business is dead now. The planting of the new crop vegetables in this critically important region may also never happen. The irrigation system is broken by russians, and without it, the south will definitely be left without a crop of vegetables and a large part of the crop of grain and oilseeds!
10. As of the imported fish and fruits, I have nothing good to say. They were mainly supplied through the ports, and it is not clear when imports will be resumed. Therefore, for now, people will have to live without them. And this is a very important element of the country’s food balance.
11. Even in the western regions of Ukraine, there are already some food shortages, because many migrants moved there fleeing from the war and because the supply chain from the Center and South of Ukraine is broken. It is impossible to cover the shortages with imports because the EU did not have major stocks and relies in large on imports. Besides, the EU countries now need to feed additional 3 million Ukrainians, which moved there from the war! Moreover, the entire food system of the EU was set up to accept food imports from Ukraine, and not to export to Ukraine. Therefore, it is impossible to import food from the EU right now! Ukrainian supermarket chains are ready to buy products, but the EU wholesalers simply do not have much availability even at a high price. Thus, Ukraine needs to find a solution and source food somewhere else.
12. Europe does not have the ability to increase food production quickly. This process would take years and would hardly be possible at all because the agricultural area is decreasing,  while environmental standards and limitations are constantly rising.

The main conclusion is that Ukraine does have stocks of the very basic products, but I am far from certain that it is good news, and it certainly does not guarantee Ukraine’s complete food security. Farmers and processors, especially these involved in the production of high value products, are on the verge of bankruptcy, and the threat is growing daily.

If you are a citizen of Ukraine and if you can plant a small garden for yourself this spring, it is worth considering. I am sure that the world will help Ukraine survive this year, but as I have mentioned many times, only the Armed Forces of Ukraine can save the planting campaign this year and the whole agribusiness of Ukraine!

Сообщение Food security and agricultural sector of Ukraine during the war появились сначала на EastFruit.

The United States banned the imports of avocado from Mexico, and prices in the domestic market rose sharply, while in another part of the world, in Uzbekistan, avocado fell in price by 2 times. However, even before this ban, avocado prices in Uzbekistan decreased by about 25% due to another factor – the elimination of import customs duties.

EastFruit analysts explain that these factors have led to the fact that 3.5 months ago avocados, considered one of the most expensive fruits in Uzbekistan, have become much more affordable for many consumers in the country.

In the first ten days of October 2021, the government of Uzbekistan decided to exempt the import of a number of fruits, which included citrus fruits, exotic fruits, among them avocado, from customs duties. Prior to the decision, a customs duty rate of 10–20% but not less than $0.2/kg was applied, when importing these fruits. Of course, the decision by the government was very positive for consumers, as due to climatic conditions, Uzbekistan cannot grow the vast majority of fruits included in the list.

Note that avocados are sold in the supermarkets of Uzbekistan by piece.

As a result of the elimination of customs duties, retail prices for avocados in Uzbekistan decreased on average from 24 000 to 18 000 UZS/piece (from $2.2 to $1.66), i.e. by 25%, from the beginning of November to the end of December 2021. These are the best-selling green varieties of avocado in Uzbekistan and inexpensive on the global market.

In the early months of 2022, the global avocado market was rocked by an event that sent prices plummeting. The United States, the world’s largest importer of avocados, banned the import of avocados from Mexico, which in turn is the world’s largest exporter of avocados, as EastFruit wrote. The total value of avocado exports from Mexico to the US is estimated at about $3 billion, and the share of Mexico in total imports of avocados to the US is about 90%.

“Given already record high prices for avocados in the United States, as well as peak demand during this period of the year, the suspension of imports from the largest supplier country will undoubtedly lead to a shortage of avocados in the country’s supermarkets. In the context of a huge shortage of sea containers in the world, it will not be possible to quickly find a replacement for Mexico and arrange deliveries. After all, Mexico is a neighbor of the United States, and all other major suppliers of avocados in the world are considerably far from the United States. Even if the delivery can be organized, it will take a lot of time,” said Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).

As a result, there was a huge surplus of Mexican avocados on the global avocado market and prices collapsed. In the USA, on the other hand, there was a shortage and prices rose sharply there.

Returning to Uzbekistan, from the beginning of January to mid-February 2022, retail prices for avocados decreased from 18 000 to 8 800 UZS/piece (from $1.66 to $0.81), i.e. 2 times. Moreover, according to EastFruit specialists, Hass avocados are sold at 8 800 UZS.

Thus, from the beginning of November 2021 to mid-February 2022, due to two factors – the elimination of import customs duties and the US ban on the import of Mexican avocados, retail avocado prices in Uzbekistan decreased from 24 000 to 8 800 UZS/piece, i.e. at least 2.7 times. In other words, in just 3.5 months, one of the most expensive fruits has become much more affordable for many consumers in the country.

Сообщение Uzbekistan: Avocado became affordable for consumers появились сначала на EastFruit.

According to the Rosselkhoznadzor, China again received the right to supply fresh apples and pears to the Russian market from February 20, 2022.

This is good news for China and for Russian consumers, who are now paying a very high price for Russia’s voluntary self-isolation from global markets. However, according to EastFruit analysts, this is bad news for Moldova, which has a major competitor in the Russian market.

“China is the world’s largest exporter of apples and has remained at the top of the global ranking of exporters, despite the ban on the supply of products to the Russian market. China exports about 1 million tonnes of fresh apples to many countries around the world annually. The main advantage of Chinese apples is their low price. Therefore, they are mainly purchased for a low price segment, while China imports premium-quality apples from countries such as New Zealand, the USA, Chile, South Africa and France,” says Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).

Note that before the ban on supplies, Russia was one of the three main markets for fresh apples. Annual exports of Chinese apples to the Russian market ranged from 100 000 to 150 000 tonnes, which made China the second largest supplier of apples to Russia after Moldova. In some years, the volume of supplies of Chinese apples to the Russian market even exceeded the volumes of supplies from Moldova.

At the same time, Russia is the world’s largest importer of apples, purchasing from foreign markets from 700 000 tonnes to 1 million tonnes of fresh apples annually. In connection with the build-up of Russia’s aggression against Ukraine and the expected tightening of international sanctions against the Russian Federation, there is a real threat to Russia’s food security. Prices for vegetables and fruits in the Russian Federation can rise quite sharply, which will make them unaffordable for many local consumers, as the country is heavily dependent on their imports. Therefore, the refusal to ban the import of fruits and vegetables is a logical step.

Recall that the import of apples and pears from China to Russia was stopped on August 10, 2019 due to the increased number of cases of deliveries to the country of products not complying with the Russia food safety regulation. Since then, Chinese products only in small volumes have been re-exported to the Russian market through third countries.

Сообщение Bad news for Moldova – Russia allowed apple and pear imports from China появились сначала на EastFruit.

According to EastFruit analysts, Ukraine exported for the first time a commercial batch of carrots to the Saudi Arabian market in 2021. Twenty-four tonnes of carrots were sent from Ukraine to Saudi Arabia in sea containers in September 2021. By the way, we wrote about the prospects for exporting carrots to Saudi Arabia and other countries of the Middle East three years ago.

“The main problem of the Ukrainian vegetable sector is the lack of orientation on the needs of export markets. Since local supermarkets and wholesalers continue to sell vegetables of extremely low quality, it is easier and more convenient for vegetable growers in Ukraine – they do not have to invest in more efficient growing technologies, in expensive modern equipment for handling, cooling, sorting and packaging vegetables. However, the result is periodic price collapses, when the supply is even slightly higher than the needs of the domestic market, and income per hectare is relatively low. Therefore, even trial deliveries of commercial batches of fresh vegetables to distant markets are an important experience and an important signal to market participants that this is possible,” Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), said.

In total, Ukraine increased exports of carrots by almost 3 times to 11 600 tonnes in 2021. Of course, this is a meager volume compared to what Ukraine could export if it produced export-grade carrots and promoted their exports.

“The countries of the Middle East annually import over 300 000 tonnes of fresh carrots. The UAE imports about 100 000 tonnes, and Saudi Arabia – from 50 000 to 60 000 tonnes. Kuwait and Qatar import 20 000 tonnes of carrots a year. This is a huge market that could provide Ukrainian vegetable growing with a good level of stability. At the same time, it would allow to reduce logistics costs due to the growth in supply volumes and provide further access to the supply of vegetables and potatoes to the countries of Sub-Saharan Africa, as was the case with apple exports from Ukraine,” — adds Andriy Yarmak.

In the meantime, the main market for Ukrainian carrots in 2021 was Belarus, which accounted for about 68% of all carrot exports. Ukrainian suppliers also managed to double the export of carrots to Romania, where more than 2 500 tonnes were sent over the year. Moldova and Kazakhstan were the second and third among the largest buyers of Ukrainian carrots with smaller but significant volumes.

Сообщение Ukraine exported carrots to Saudi Arabia for the first time появились сначала на EastFruit.

A 15 year-long negotiations on a free trade zone between Ukraine and Turkey ended on February 3, 2022 with the signing of the FTA agreement in Kyiv. This news stirred up the produce business of Ukraine, many representatives expressing fears that Ukrainian vegetables and fruits would no longer be able to compete with Turkish ones. EastFruit experts decided to find out whether these fears are justified and whether Ukraine will benefit from the agreement?

Firstly, let’s figure out what the trade in vegetables and fruits between Ukraine and Turkey looks like now. The exports from Ukraine to Turkey is simple – among fruits and vegetables, Ukraine exports only walnuts to Turkey, although there were serious problems with their export in the last 1.5 years. However, we will talk about this below. Periodically, Ukraine exports onions, apples (for re-exports to Egypt) and occasionally potatoes.

Of course, Ukraine imports much more from Turkey than it exports, and it is Turkish imports that are most feared in Ukraine. Let’s analyze the imports of Turkish products to Ukraine.

In 2020, Turkey supplied Ukraine with fresh fruits and vegetables worth $315 million, which corresponded to 30% of all Ukrainian imports of vegetables and fruits. According to the results of 2021, the import of fruits and vegetables from Turkey to Ukraine is estimated at $340-350 million.

For comparison, the largest volume of fruit and vegetables Ukraine exported to Turkey (mainly walnuts) was noted in 2019. It was worth $37 million, which accounted for about 12% of Ukraine’s export earnings in this category of goods. Thus, Turkey is an important sales market for Ukraine, as well. However, let us return to the import of fruits and vegetables from Turkey.

The main position of fruit and vegetable imports from Turkey to Ukraine was citrus fruits accounting for 54% of all deliveries. Another 18% were greenhouse tomatoes, 9% – table grapes, 5% – cucumbers, and 4% – fresh strawberries. All other positions together gave about 10% of the value of imports. They included various exotic fruits that are not grown in Ukraine, dried fruits, as well as fresh apricots, peaches and bell peppers.

Turkey dominated among the suppliers of greenhouse tomatoes and cucumbers to Ukraine – Turkey accounted for 75% and 77% of all imports, respectively. Turkey also dominated in the segment of citrus fruits (53%) and table grapes (63%). By the way, the main position in the category of citrus fruits was Turkish mandarins, while the share of Turkey in lemon, orange and grapefruit imports was noticeably lower.

Ukraine cannot grow most of the fruits and vegetables that it currently imports from Turkey, except for greenhouse cucumbers and tomatoes. Meanwhile, there is a zero import on the import of citrus fruits and other fruits that are not grown or are grown in insufficient volumes in Ukraine from Turkey. As for greenhouse vegetables, we need to go in more detail, since Ukraine grows them. Moreover, record high gas prices in the winter of 2021/22 have already put Ukrainian greenhouse complexes in a very challenging environment.

What will the signing of the FTA between Ukraine and Turkey change for Ukrainian greenhouse growers?

Imports of greenhouse cucumbers, tomatoes and peppers are currently subject to an import duty of 10%. After the entry into force of the FTA agreement, the rate should be zero, although we have not yet seen the full document and do not know this for sure. However, this is the most likely scenario.

How important is this and how will it increase competition in the market?

First of all, Turkish greenhouse vegetables are supplied to Ukraine mainly when Ukrainian ones are not available on the market or are available in small volumes. In addition, as a rule, Turkish vegetables are sold cheaper than Ukrainian vegetables. Consumers still pay more for Ukrainian vegetables, mainly because they are tastier, as they were grown close to the consumer and harvested ripe.

Reducing the duty by 10% to zero, will give Turkish tomatoes about 1.0-1.5 UAH (about $0.05) of an additional advantage in the peak sales season, and this is a lot. In our opinion, other factors will have a greater impact on the competition between Ukrainian and Turkish greenhouse products, namely, a sharp increase in energy costs and the devaluation of the Turkish lira. The first factor will impact Ukraine more than Turkey, and Turkish exporters will benefit from the second factor, too. Although there is one more point – Turkey imports many inventories for growing greenhouse vegetables and their costs will also increase.

It is obvious that the FTA with Turkey is, at first glance, bad news for greenhouse growers in Ukraine. However, they have far more compelling reasons to worry than a 10% cut in import duties on Turkish tomatoes, cucumbers and peppers.

One should look at this from the other side. Ukraine has its own season, when growing greenhouse vegetables is cheaper than in Turkey, and it lasts from mid-June to September.

“Turkey is one of the most “protected” economies in the world. Traditionally, import duties are quite high here. Therefore, it would be very interesting for Ukraine to get free access to this huge market. Since Turkey is located in a different climatic zone, the two countries perfectly complement each other in the food industry and food products. Cucumbers, tomatoes and peppers are very difficult to grow in greenhouses in Turkey in summer, because it is too hot there. Now, if Turkey cancels import duties for Ukraine on greenhouse vegetables (and the duty before the FTA ranged from 40% to 100%, that is, it was actually prohibitive), then Ukrainian exporters may well try to arrange the exports of greenhouse tomatoes to Turkey in summer,” – economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO) Andriy Yarmak, says.

Horticulture business expert and FAO international consultant Fedir Rybalko also believes that the FTA with Turkey can bring Ukraine some benefits. “Turkish market can be very interesting for Ukrainian suppliers, especially in case of direct deliveries to retail chains. After all, we have very efficient logistics, because Ukrainian citrus importers are now paying for the return freight. In other words, the cost of exporting to Turkey will be very low. For example, if prices for some products start to rise in Istanbul, Ukrainian products will fill this niche in just 48 hours. Also, Turkey is a very interesting market for suppliers of fresh blueberries from Ukraine. The consumption of blueberries is growing there, and Ukraine exports them when Turkish local blueberries have long ended and neighboring countries cannot supply the market either. We think that Ukraine could export up to 200 tonnes of blueberries to Turkey per season,” says Fedir Rybalko.

He also notes that Turkey is an important transport hub in the region, and Turkish Airlines have direct flights to a record number of cities in the world. Therefore, by entering the Turkish market, Ukraine will be able to use more opportunities of transportation by air. “We can use all existing ferry crossings from Skadovsk and Odesa. For example, a refrigerator loaded with fresh blueberries in the Zhytomyr region for delivery to Singapore, Malaysia or other Asian countries can arrive by ferry to Istanbul airport. This will reduce the risk of loss of quality during exports and will be more cost-effective than delivery by air from Ukraine with reloading in Istanbul,” Fedir Rybalko says.

An even greater potential opens up for Ukraine in fruit and vegetable trade with Turkey if Ukraine ever starts using its largest transport corridor, the Dnipro River, for this. Ukraine could well become a major transit hub for the supply of Turkish products to Belarus and, through Belarus, to the EU market. Trade and transit bring new trading places and budget revenues.

Andriy Yarmak says that the main good news for the produce business will be the opportunity to return to the Turkish walnut market. “Walnuts have been the main export position of Ukraine in the fruit and vegetable segment for many years in a row. However, due to the fact that competitors could supply walnuts to Turkey duty-free, and Ukraine had to pay duties, Ukrainian suppliers lost this market. I estimate Ukraine’s losses from the absence of an FTA in Turkey at $40 million a year. Now Ukraine will definitely return to the Turkish walnut market and will be able to successfully push out competitors there due to cheap logistics,” says the FAO expert.

He also notes the indirect benefits that a free trade zone with Turkey gives Ukraine. “Turkey is one of the largest re-exporters of agricultural products in the world. By supplying products to Turkey, Ukraine will open up new markets. Ukrainian companies already had a similar experience – after their goods entered the Turkish market, they were found in the markets of Africa and Asia, and then exporters directly contacted suppliers in Ukraine. This is an important aspect that should not be underestimated. I think that Turkish and Ukrainian companies may experience synergy in re-exporting fruit and vegetables to the countries of the Middle East and Africa,” notes Andriy Yarmak.

It should also be noted that any increase in trade and reduction in transaction costs is always a direct benefit for any country. These include new jobs, growth in budget revenues, and increased access of consumers to a wider range of products at a competitive price. However, it is obvious that the fruit and vegetable business of Ukraine as a whole is most likely to benefit much more from the free trade zone with Turkey than Turkey.

Сообщение Ukraine and Turkey have signed a Free Trade Agreement – what should the Ukrainian produce business expect? появились сначала на EastFruit.

A couple of years ago, I wrote a rather futuristic blog that doesn’t seem as unrealistic today as it did back then. All this already exists on a commercial scale. Today I would like to tell you about the developments in the segment of culinary and aromatic herbs, which is one of the most important for the countries where our projects operate. After all, both Georgia and Uzbekistan export huge volumes.

Russia imports about 50 000 tonnes of culinary and aromatic herbs per year worth more than $50 million. Uzbekistan is the largest supplier to Russia, and Georgia is one of the largest. What is the future of the culinary and aromatic herbs growing and export business, and what does vertical farming have to do with it?

We, the FAO and EBRD, are launching a project dedicated to the newest technological innovations in the production, processing, logistics and marketing of vegetables, fruits, berries and nuts.

We will pay attention only to real technological breakthroughs, which will significantly reduce the risks in the produce business, while resolving the urgent issues for the industry, such as reducing the negative impact on the environment, increasing efficiency and a sharp reduction in production costs, a reduction in product losses, fossil energy sources used and manual labor costs, an increase in product quality, etc.

One of the most advanced and trending technologies are vertical farms. We are well aware that there is a lot of fuss around this trend now. However, the industry is already attracting tens of billions of investments, which means that the world is actively looking for solutions to problems. Therefore, the EastFruit international team also started studying the situation in our region. As for the global experience, we have been studying it for quite a long time.

I already see at least one business format of vertical farms, which is absolutely economically viable today in our region!

This is a format for growing culinary and aromatic herbs right in a good restaurant or in its back room. After all, it is well known that the cost of products is not a key cost element for a restaurant. At the same time, given increasing competition among restaurants, the quality of products can become the main advantage.

I tasted salads at the Café Stamba restaurant in the very center of old Tbilisi, which has its own vertical farm. Culinary herbs were cut just a few minutes before serving. And they were really tasty! In addition, this vertical farm grows a huge range of culinary herbs that cannot be bought on the market, because no one else grows them. With the help of chefs, producers have found the most flavorful herbs for their recipes, and these experiments can go on. It’s incredibly convenient and very effective. Well, the zero use of pesticides cannot fail to impress those who care for their health.

The second unexpected aspect is that vertical farm is very beautiful! This is an excellent interior decoration, and many people come to Stamba to take pictures of the purple-pink farm with herbs.

Other restaurants in Georgia are interested in purchasing such compact solutions for their own purposes. Tusya Garibashvili, the founder of the Georgian company Space Farms, has already developed a prototype of an automated vertical farm for restaurants and supermarkets, where, according to her, up to 25 kg of culinary and aromatic herbs per month can be harvested on 2 square meters.

Of course, this is only the beginning and the first steps. We know that many supermarket chains are working on their own projects of vertical farms for placement both in sales areas and on facades or investing in partner projects (read the article about the $400 million investment of the world’s largest supermarket chain Walmart in Plenty), realizing that culinary and aromatic herbs grown nearby will always be fresher and tastier than those brought hundreds or thousands of kilometers away. In addition, do not forget about the “carbon footprint” that such transportation leaves. Demonstrating a reduction in the cost of transporting products and a reduction in harmful emissions is now the most important task for every retailer worldwide, including supermarkets in our region. This opens up access to many sources of concessional financing, which is an important advantage for the development of the retail business.

Have you noticed another interesting trend? Many large fruit and vegetable companies are starting to abandon air transportation! Let me remind you that culinary and aromatic herbs are usually only transported in this way, as they are an expensive and perishable product. This means that in the next five years, the export of herbs will sharply decline. If we add the development of vertical farms, which will accustom the consumer to much tastier culinary herbs and a wide range of them, in my opinion, it is time to say farewell to the international trade in fresh herbs.

As confirmation of my words, the international trade in culinary and aromatic herbs has already begun to decline. I think that 2021 will be the fourth year in a row when culinary and aromatic herbs exports, even in value terms, are falling. This means that Uzbekistan and Georgia should start looking for other opportunities, as the trend for the development of vertical farms in Russia is also present and gaining momentum.

In conclusion, I want to say that the largest exporters of culinary and aromatic herbs in the world are Italy, the Netherlands, China, Ethiopia and Mexico. Among the countries of our region, Uzbekistan is among the twenty largest global exporters. On a global scale, the international trade in culinary and aromatic is a $3 billion business. It is possible that the volume of such trade will be minimal in 10 years.

Сообщение Will vertical farms kill the international trade in culinary and aromatic herbs? появились сначала на EastFruit.

According to EastFruit analysts, Ukraine continues to increase kiwi imports. In the first 11 months of 2021, Ukrainian fruit importers purchased 11% more kiwis from abroad than in the same period in 2020.

The total volume of kiwi imports to Ukraine in 11 months of 2021 reached 16 400 tonnes. Thus, according to our estimates, the average consumption of kiwi in Ukraine exceeded 400 grams per capita per year for the first time.

“The average consumption of kiwi in Ukraine is below the average, but is gradually increasing due to rising household incomes and a growing interest in a healthy lifestyle. Kiwi consumption in other countries of the world is also growing. The average consumption of kiwi per person is now about 600 grams per year. At the same time, the leader in per capita consumption of kiwi is not New Zealand, as many believe, but Greece. The average citizen of Greece consumes up to 14-15 kg of kiwi annually. At the same time, kiwi consumption is higher in those countries where it is grown,” Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), explains.

By the way, Greece has traditionally been the largest supplier of fresh kiwi to the Ukrainian market. However, according to the results of the first 11 months of 2021, Greece lost its status as the main supplier of kiwi to Ukraine for the first time. Iran has increased exports by 67% over the year and bypassed Greece in this rating. Thus, according to the results of 11 months of 2021, Iran accounted for 40% of kiwi imports to Ukraine. Greece remained second with a share of 37%, although last year it accounted for 52% of all kiwi supplies to Ukraine. Italy is third with a share of 14%.

The fastest to increase kiwi exports to Ukraine is Turkey. Turkey did not export kiwi to the Ukrainian market two years ago, and in 2021 it became fifth, having supplied more than 700 tonnes in 11 months.

The average retail price for kiwi in Ukraine in January 2022 was 50-60 UAH/kg ($1.7-2.1/kg). It means kiwi was quite affordable and costs on average twice as much as good-quality apples. If we compare prices in the countries of the region, kiwi prices in Ukraine are relatively low, although they are higher than in Georgia, which itself is now actively increasing the production and exports of kiwi.

Сообщение Iran became the largest supplier of kiwi to Ukraine in 2021 появились сначала на EastFruit.

EastFruit experts note the growing interest of Ukrainian consumers in understanding why borsch vegetables are so expensive.

Indeed, it is difficult for many to understand why the retail price for cabbage now ranges from 21 to 25 UAH/kg, while last year at the same time, it was sold at an average of 4-5 UAH/kg. And how can cabbage cost more than apples?

By the way, cabbage, carrots, onions and table beets were sold at approximately the same retail price a year ago – within 4-5 UAH/kg. However, all four of these important vegetables are now many times more expensive. Table beets are now sold in supermarkets in Kyiv at 16-18 UAH/kg, onions – at 13-16 UAH/kg, and carrots – at 15-20 UAH/kg.

By the way, the only product from this category that has not risen in price over the year is potatoes. Moreover, it even fell a little in price over the year. And if in January 2022 potatoes were the most expensive vegetable of the borsch set, now they are the cheapest.

However, how can one explain such high prices for beets, carrots, onions and especially cabbage, and why prices for borsch vegetables have risen so sharply over the year? We will also try to figure out whether there are prospects for lowering the prices.

Probably, this will come as a surprise to many in Ukraine, but despite the ban on the export of vegetables from Ukraine to Russia, it is Russia that is mainly “to blame” for the high prices for vegetables in Ukraine. Moreover, there are two important factors that led to an increase in vegetable prices in Ukraine, and which are directly related to Russia.

The first factor is the unprecedented shortage of vegetables in the Russian market. Since Russia has isolated itself from the markets of Ukraine and the EU, it is not easy to fill this deficit, and as a result, local consumers are forced to pay incredibly high prices for vegetables and potatoes, losing billions of dollars on this. This problem was previously partially solved by Belarus, which re-exported vegetables banned in Russia from the EU countries, but it has banned the import of vegetables and fruits from the EU and a number of other countries since January 1, 2022.

However, if Ukraine cannot export vegetables to Russia, how do the developments in the Russian market affect the Ukrainian market? It’s simple – Russia buys cabbage, carrots, beets and other vegetables wherever it can. Belarus has traditionally been a major supplier, but it also faced a crop failure in 2022, so it began to purchase vegetables in Ukraine. Today, the export of vegetables to Belarus is more profitable than their sale on the domestic market of Ukraine, and it is easy to guess that these Ukrainian vegetables are likely to end up on the Russian market.

The second factor that leads to an increase in prices for vegetables in Ukraine is also directly related to Russia. Due to the concentration of Russian troops on the borders with Ukraine and the threat of their invasion into the country, the national currency of Ukraine has been actively devaluing in recent weeks. This makes exports even more profitable, which means that the supply of vegetables for the domestic market is reduced. Thus, retailers have to raise prices in order to purchase vegetables from growers.

In the case of cabbage, another factor is added – the increase in the cost of imports. After all, Ukraine is now importing cabbage from Poland. If the UAH devalues, even with the price for cabbage in Poland remaining the same, its price in Ukraine grows in proportion to the devaluation of the UAH.

Of course, one cannot but take into account the reducing production of traditional borsch vegetables in Ukraine. “In recent years, grain prices have risen to record levels, while prices for borsch vegetables in Ukraine have remained stable. This almost equalized income per hectare of grains with income per hectare of vegetables. The risks in growing vegetables are much higher, it is more difficult to grow them, they are far from being stored as well as grains. Losses during storage of vegetables are much higher and even market risks are ten times higher than in the case of grain, which can always be easily sold. This has led many vegetable and potato growers in Ukraine to abandon the production of table beets, onions, carrots, cabbages and potatoes in favor of grains,” explains Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).

Will vegetable prices go down in the near future and in the new season? Unfortunately, there is no definite answer to this. However, the EastFruit team in Central Asia confirms a sharp increase in the area planted with early cabbage, the harvest of which is beginning in the southern regions of Uzbekistan and Tajikistan. It is possible that it will become available on the Ukrainian market in February, leading to a reduction in wholesale and retail prices for cabbage.

As for other vegetables, one should not expect a significant decrease in their price in Ukraine in the coming months, given the situation with production and logistics in other countries of the region.

Opinions about the prospects for a new harvest are divided. Many market participants believe that high prices will lead to a sharp increase in acreage in Ukraine. Others point to the fact of a sharp increase in the cost of inputs, especially fertilizers, which may act as a deterrent to increasing areas, and may also affect vegetable yields.

Сообщение Why are traditional vegetables so expensive in Ukraine? появились сначала на EastFruit.

The EastFruit international team would like to thank all our readers for their loyalty and interest in our work.

We are very pleased that in just three years since the launch, the audience of unique visitors of our portal has exceeded 1 million, having increased by 91% in 2021 compared to 2020. This secured the EastFruit’s position of the regional leader among all specialized fruit and vegetable resources. In addition, the citation of the portal in the world has sharply increased in 2021.

“At the end of 2020, we launched the English version of the EastFruit portal, and many materials became available in Uzbek in 2021, which significantly expanded the geography of platform users. This allowed doubling the number of Uzbek users who have access to high-quality and timely market analytics and in-depth market research. The English version of the website has increased interest in fruit and vegetables from the countries of our region. This is confirmed by many requests from large EU import companies for contacts of potential exporters of nuts, fruits, berries and vegetables from Uzbekistan, Ukraine, Moldova, Georgia and Tajikistan,” Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), says.

“We often find translations of EastFruit materials into Spanish, Chinese, German, Italian, French, Turkish and Dutch and sometimes receive very unexpected and pleasant letters of gratitude for our work from all over the world. Recently, a large fruit exporter from Iran wrote to us, who said that he has been using our portal for several years and makes sure that all his employees read it regularly!” – says Kateryna Zvierieva, FAO International Consultant and EastFruit Project Manager.

The audience of our trading group EF Trade Platform has also grown much in 2021, having reached almost 20,000 members. Our YouTube channel has more than 2.6 thousand subscribers and hundreds of thousands of views. Our Telegram channel is also the Top-1 fruit and vegetable analytical Telegram channel – subscribe to receive the latest news in your smartphone!

But that’s not all! The global fruit and vegetable business reacted very positively to the launch of the EastFruit page in LinkedIn – 1500 people have already subscribed to our news in English! If you are exporting or importing, be sure to register there and subscribe to us – this is a very useful tool. We also have a very popular Twitter page with thousands of fruit and vegetable tweets, over 5,000 followers on the EastFruit Facebook page in Russian, and a growing audience of the English page.

We hope that we will provide you with many interesting materials in 2022. In addition, we are starting to delve into the most modern, environmentally friendly and efficient technologies for growing, processing, storing and marketing vegetables, fruits, berries and nuts.

Сообщение Over 1 million unique visitors, EastFruit audience doubled in 2021! появились сначала на EastFruit.