Last year, EastFruit reported that the Ukrainian company FruiTech produced and exported the first batch of blueberry nursery plants for a client from Italy.

According to Oleg Bosyy, managing partner of the company, FruiTech LLC offered European quality seedlings at a competitive price. As a result, a truckload of blueberry nursery plants of the Reka and Bluegold varieties was sent to Italy.

In the difficult conditions of Russian military aggression, disruption of production and supply chains, FruiTech continues to work this year, and even supplies its products to the EU countries.

As Sergiy Zmiichuk, co-owner of FruiTech LLC, said on his Facebook page, the company continues to export nursery plants even to the EU.

“We send blueberry nursery plants to sunny Italy. We make our small contribution to support the Ukrainian economy. We will grow new nursery plants for our Ukrainian producers and after the war we will ship them for autumn planting,” Sergiy writes.

Besides, FruiTech offers two-year-old nursery plants of the following varieties, which can now be bought at a very favorable price:

2.000 Bluegold C1.5

13.000 Bluegold C2

3.000 Bluecrop C2

6.000 Nelson C1.5

20.000 Nelson C2

5.000 Elliott C2

For more information please contact:

tel./fax: +38 043 260 30 80

mobile: +38 067 260 30 80
+38 099 260 30 80

e-mail:   office@ft.ua

Сообщение FruitTech Ukraine – Good prices for top quality nursery plants of blueberries for the EU buyers (photo) появились сначала на EastFruit.

Since the beginning of February, wholesale prices for imported blueberries have been increasing on the Polish market, EastFruit project analysts report with reference to the fresh-market website. In total, imported blueberries in Poland have risen in price by 34% over the year, and current blueberry prices are in the range of 36.00-58.00 PLN/kg ($8.98-14.46/kg), depending on quality, packaging and country of origin.

It is worth noting that since the blueberry harvest in Spain has been going on for several weeks now, the increase in the supply of blueberries should lead to a fall in prices, not an increase. Unfortunately, the harvesting is still at a very early stage, as no more than 8-9% of the planned blueberries were harvested by the end of the 10th week in Spain.

In the 9th week (the latest data by Cen Junta de Andalusia), blueberry prices in Spain increased from $6.03/kg to $6.17/kg. According to market operators, this increase in blueberry prices in Spain is a consequence of high production and logistics costs, as well as problems with the current harvest due to adverse weather conditions. At the same time, there is a tendency to reduce selling prices for blueberries every year. Thus, prices for blueberries in Spain decreased from $7.12/kg last year to the aforementioned $6.17/kg.

Сообщение Prices for imported blueberries in Poland have increased instead of falling появились сначала на EastFruit.

In 2021, Georgia exported $5 081 000 worth of blueberries to Russia. The 2022 season will start in June, but growers are in a limbo today. The consequences of the war with Ukraine are likely to affect the Russian economy in the coming months. The only way to save this season is to export to the EU and other developed markets, but is it realistic? Georgia became a producer of blueberries quite recently, but 90% of all export earnings from the sale of blueberries come from the Russian Federation.

Watch: video about the blueberry sector in Georgia

The EastFruit team contacted several blueberry growers in Georgia to find out what their plans are for the season.

Although growers cannot make an accurate forecast, today’s view of the future looks hopeless. Growers are worried that Russian consumers will become poorer due to sanctions, and demand for blueberries will fall, since they are not an essential product.

An alternative to the Russian market is the EU and Gulf countries, but it seems that the industry, with the exception of a few large growers, is not ready to export to these markets without previous experience. Only a few growers are ready to export to the EU this season.

Why haven’t Georgian blueberry producers diversified their export markets so far?

Growers cited several reasons: logistics difficulties, unfavorable payment terms, uncertified production, as well as the ability of local laboratories to check the safety of products.

Logistics

Georgia does not have cargo planes for export to the Gulf countries, although a small volume of blueberries has been exported to Qatar only by passenger airlines in recent seasons. Another hurdle is that since it is not a cargo plane, it does not have the proper facilities, such as temperature control, to carry perishable goods.

Export to the EU countries is carried out by land transport, which is not difficult to organize. The issue is time. If a perishable cargo from Georgia reaches Russia in 3-4 days, then, for example, it needs 9-10 days to reach Germany. Transport time is critical for perishable goods, as more time spent on the road means lower quality and loss for the seller.

Terms of payment

As the growers explained, there are different payment terms in the Russian and European markets. Payment in Russia was made on the spot, while European traders only pay after the sale of goods, which delays payment by weeks, reducing cash flow and increasing risks for sellers. When exporting to EU markets, grower also take on the risks of transportation and defective products, since they will be paid only for commodity volumes.

Certification and laboratory research

Growers without certificates such as GlobalG.A.P. will not be able to export to the EU as this is the first requirement from European customers. Unfortunately, only a few large growers are certified by GlobalG.A.P. in Georgia, while most of the small producers initially set up their business to export to the Russian market, where certification is not required.

In addition to certification, blueberries must be tested for product safety in order to enter developed markets. According to producers, laboratories in Georgia cannot do all the necessary tests.

FCO is one of the few producers that received GlobalG.A.P. certification in 2020. According to FCO spokesman Rati Morchiladze, although it seems that this season will be difficult for most growers, their company plans to sell in Western Europe, as they have already done this last season.

“Last season we exported a small volume of blueberries to Germany. We only managed to export once at the end of the season due to the difficulties we faced. One of the factors that delayed the process was that we had to send samples to Turkey in order to pass all the requested tests. But now we know what needs to be done and how to do it in a short time. This season it should be easier for us to export to Germany. We even found a way to shorten the transportation time. With two drivers driving a truck in turn, it is possible to get to Germany in 5-6 days,” said Morchiladze.

Those who are not yet ready to export to the EU are still hoping that the Russian market will not be completely closed, but they are also considering the worst-case scenario, realizing the need to diversify markets in the future.

Сообщение Is Georgia ready to export blueberries to the EU? появились сначала на EastFruit.

Digitalization and mechanization become a part of Georgian agriculture as an increasing number of producers invest in precision farming technologies. Mkisa is a Georgian company contributing by building an agricultural business where almost every decision is based on data analysis taken from digital tools directly on the field. In the next few years, Mkisa plans to develop the whole value chain production and become a consultancy service provider for others.

The company started its operations in 2020 and has already planted 10 ha of almonds and 24 ha of maize, while 30 more hectares of almonds and 20 ha of blueberry orchards are planned to plant in the first quarter of 2022. First harvests are expected in 2023. In total, the company owns 200+ ha of land in east and west Georgia and has plans to increase it in forthcoming years. The eastern sites are intended for almonds production, while western sites are for the blueberries.

The decision to plant almonds and blueberries was based on market research, which revealed that almonds and blueberries were the optimal choices in terms of the Return on Investment (ROI) indicator and the time needed to receive the first harvests, compared to other considered alternatives. They also took into account government programs’ and the banks’ potential support while choosing the crops.

EastFruit discussed the company’s experience in digital agriculture and the future plans with its executive director Gigi Gachechiladze.

What kind of digital tools are you using to manage the orchards or planning to use in the future?

We’ve invested in a weather station, plant and soil sensors, as well as drones so far. In combination, these tools allow us to plan and manage almost all operations in the orchards based on precise and live data.

Weather station: price, components, and applications

We bought a weather station from the local representative of USA-based company DAVIS — CVIG. The bundle – weather station covering 40 ha, and leaf and soil sensors for 10 ha – cost 15 000 GEL ($4,644) in 2021. We are planning to add more sensors to cover a total of 40 ha of almond orchards in 2022.

Station has several transmitting nodes installed in the orchard. Each node is equipped with 3 types of sensors, soil moisture and temperature, and leaf wetness sensors. Nodes and sensors are fully autonomous in terms of electricity and the internet. Station uses solar panels as an energy source and 4G for the internet connection.

Analysis of historical data taken from the sensors is crucial for planning or adjustment of schedules and doses of pesticide, herbicide, fungicide, and fertilizer applications, while live data analysis guarantees timely agronomic measures. Agronomists agree that even hours matter when taking preventive measures against the diseases.

Each sensor gives different kind of information to plan various activities. Soil moisture sensor gives data crucial for irrigation and application management. The soil temperature sensor shows the temperature in the ground to analyze the root development of plants. Leaf sensor gives dates and duration of leaf wetness, helping agronomists to assess the effectiveness of applications and rainfalls.

Weather stations can give much more indicators if needed, but on a daily basis we monitor soil moisture and temperature, rainfalls, evapotranspiration (ET), humidity, wind speed, wind direction, and THSW (temperature, humidity, solar radiation, and wind) index. Station also forecasts the weather for the next 7 day period. Each data is crucial to analyze the real state of plants.

Agriculture drones

We have our own drone and are in the research and development stage in this direction. Drones can be equipped with a multispectral camera which gives multispectral images for analytics. We think that this technology will be useful for large fields and orchards as it can identify problematic areas of land and give signals to an agronomist to take a closer look at that area.

We also used an agricultural drone to spray 24 ha maize fields against the disease last year. It was the right decision, as plants were already tall and it was impossible to spray them conventionally. I find it helpful to use drones for spraying annual crops, while I’m a little skeptical about their use in the case of tree orchards. I believe conventional methods will be much quicker in orchards compared to drones, taking into account the short battery life and small tanks of drones.

Labor shortage and mechanization

We consider labor shortage during pruning and harvesting seasons as one of the future challenges. To meet this challenge our almond orchard will be fully mechanized since 2023. As for blueberry production, we consider buying mechanical harvesters. We’ve even selected the specific harvester and plan to attend the harvesting to assess it in the working process. This is the air-jet harvester produced in Serbia, which harvests berries by imitating storm and shaking plants with pulsating air jets. According to the producer’s information, the new technology less damages the fruit in the harvesting process and makes it suitable for selling on the fresh market, but we will have a clear view of it only after the tests in the field.

What are the future plans of Mkisa?

Our intention is not only to become a large-scale producer but to develop self-sustainable and green energy orchards, along with the whole value chain from planting to sales.

In 2023 we plan to build a cold storage and processing facility for blueberries in Tskaltubo or Khobi site, as well as receive certifications for both blueberry and almond production — GLOBAL G.A.P. and HACCP accordingly.

Today we work with local and international professionals to manage processes in the orchards. In blueberry orchard development, Mkisa relies on the knowledge of local consultants but receives coaching from Spain and Poland to manage almond orchards. After gaining the necessary expertise, we’ll become service providers ourselves. By that time our team will have valuable experience in digital agriculture as well, as we’ve already invested in digitalization and will continue in the future.

Сообщение Mkisa — Georgian agricultural company with a focus on digital agriculture появились сначала на EastFruit.

According to EastFruit analysts, Russia increased blueberry imports in 2021 by 21% in volume. The volume of blueberry imports to Russia exceeded 10 000 tonnes for the first time and reached 10 700 tonnes.

As in 2020, Georgia increased blueberry exports to Russia faster than other supplying countries, thereby becoming one of the Top-5 largest suppliers of fresh blueberries to the Russian market in 2021 for the first time. Blueberry exports from Georgia to Russia increased by 37% or 230 tonnes over the year and reached 850 tonnes in 2021. Thus, the share of Georgia in the Russian blueberry market reached 8%. Two years ago it barely reached 2%.

Market participants believe that Georgia could have exported more blueberries in 2021, if not for the unexpected end of the season when Russia introduced new rules for the import of plant products. Many companies stopped exporting then, as they did not have reliable information about the new rules and they were afraid of incurring severe losses.

However, Georgia exported more blueberries to Russia in 2021 than Serbia, with which Georgia switched places in the ranking of the largest blueberry exporters to Russia. Serbia reduced exports by 39% at the end of the season.

Read also: Georgia: TOP-10 events of the produce business in 2021

Noteworthy, suppliers from Zimbabwe increased blueberry exports to Russia even faster than Georgia. Their supply volumes increased 3.3 times over the year, but so far remained relatively low – 115 tonnes.

The exporters of Peru remained the market leader, accounting for one third of Russian blueberry imports. Peru also remained the largest global exporter of blueberries. Morocco remained the second with 21% of all Russian imports.

Сообщение Georgia entered the Top-5 largest blueberry suppliers to Russia, overtaking Serbia появились сначала на EastFruit.

This year has brought many surprises to Tajik farmers. EastFruit analysts interviewed Tajik producers, exporters and other participants in the produce business, based on which they identified the TOP-10 events of 2021 that affected the Tajik fruit and vegetable sector.

We also note that over 1.1 million people have visited the EastFruit platform in 2021. Therefore, we used statistics on the most readable fruit and vegetable materials of 2021 on our portal to determine the top events.

1. Spring frosts and low yield of apricots and early cherries

2021 was extremely difficult for Tajik apricot and cherry growers in terms of the impact of weather on the harvest. Unfortunately, this happens every 5-6 years. And with climate change, extreme weather events are becoming more frequent.

Two waves of frost – at the end of February and in the first half of March, during the blooming of stone fruits, caused irreparable damage to the harvest of apricots and early cherries. Frosts even harmed vegetables and potatoes in some regions. It is not surprising that our news about the possible loss of cherry and apricot harvest in Tajikistan and Uzbekistan was one of the most read and cited.

Farmers tried to save the harvest by lighting bonfires in the orchards. Also, many farmers became interested in effective frost protection systems this year, and we have prepared a detailed analysis of how they can protect the harvest of fruits and berries from a sharp drop in temperatures available at this link.

Some stone fruit producers in Tajikistan said shortly after the frost that 90-95% of the harvest of cherries and apricots would be lost. Weather disasters resulted into a decrease in stone fruit production. Consequently, the supply on the Tajik market was very limited. Average prices for apricots and cherries in 2021 exceeded last year’s prices by 50% average or more, which also directly affected the segment of dried apricots (you can see how apricots are harvested and dried in Tajikistan here). Many apricot processing enterprises also sharply reduced their processing volumes due to lack of raw materials, and some were idle.

As a result, many plans for the exports of apricots and dried fruits were not implemented, and the contracts were not fulfilled. Prices for dried fruits in the region have largely increased.

It is interesting to note that our material on the importance of dried apricots for Tajikistan published two years ago remained very relevant in 2021.

As for apricots and dried fruits, our project held a unique online conference “Apricot business in Tajikistan: Fresh apricot, dried apricots, dried fruits, organic” in 2021. It helped to look at this traditional business for the country from the point of view of global market trends and gathered a large audience. You can watch the recording of the conference at this link. 

2. Growth in fruit and vegetable exports

According to the Message of the President of Tajikistan to the Parliament, more than 200 thousand tonnes of fruits and vegetables were exported in 2021, which is 70 thousand tonnes more than in 2020.

This became possible due to an increase in the gross harvest and yield, and a gradual but constant increase in the area of ​​orchards and vineyards. The area of ​​orchards and vineyards in Tajikistan has been increasing over the past ten years. New, more productive varieties and cultivation technologies have been introduced, the area of ​​greenhouses and intensive orchards is growing. All this contributes to the growth of production volumes that put pressure on domestic prices and force market participants to look for export opportunities.

In part, the growth in export volumes was influenced by the difficult situation in Kyrgyzstan. Previously, a lot of fruits and vegetables were exported to the EAEU countries across this border without being reflected in customs reporting. Probably not only exports increased this year, but export data became clearer, as well.

Nonetheless, fruit and vegetable exports from Tajikistan could have been higher if frosts had not led to a decrease in the harvest of apricot and cherry. The crisis in Afghanistan in August-October also affected exports, when the government changed and the income level of Afghan population sharply decreased. At the same time, Afghanistan accounted for a large volume of exports of table grapes and lemons from Tajikistan during this period.

According to EastFruit, Russia and Kazakhstan imported twice as many fruits and vegetables from Tajikistan worth $28.6 million in the first 10 months of 2021. The exports of table grapes (340%), cherries (650%), peaches (220%), dried apricots (150%) and watermelon (130% ) increased the most. Of course, the clearance of exports  becomes obvious here. Onions remained the main export commodity, with 85 thousand tonnes having been exported to Russia and Kazakhstan, which is 25% more than last year.

3. Record high prices for lemons at the beginning of the year

Due to the high demand for “antiviral” fruits, their prices increased sharply in early 2021. In particular, lemon prices shot up 3 times at the beginning of the year, and traders made good money on people fearing COVID-19. In fairness, we are glad to note that the prices for lemons in December 2021 remain almost as high as at the beginning of the year – now retail lemons are sold at 15-18 TJS/kg ($1.3-1.6/kg).

The “antiviral properties of lemons”, a low harvest and late start of imports of mandarins from Pakistan, which are considered the cheapest citrus in autumn-winter in Tajikistan, contributed to high prices for lemons. Mandarins in Tajikistan are also considered very healthy for immunity and compete with lemons in the local market. 

4. Record high carrot prices

The year was very successful for those who grew and harvested carrots. According to growers, there have not been such high prices for carrots for at least 10-15 years. Of course, it was unrealistic to expect such a rise in prices and no one could have assumed that they would reach such a high level.

The retail price of carrots was 5 times higher than usual and reached 10 TJS ($0.88/kg). Even those who sowed carrots in March sold them with super-profit in May and June 2021. And this is after several unsuccessful years, when many procurers of carrots bought them cheap during harvesting to resale later at a higher price and went bankrupt.

In this regard, we would like to remind you that storage in the fruit and vegetable sector is not a separate business, but an integral part of growing and selling fruit and vegetables subject to long-term storage. Read more about typical mistakes in planning the infrastructure of the produce market (wholesale markets, storage facilities, distribution centers, etc.) here.

The main reason for the rise in carrot prices to incredibly high levels in Tajikistan and in the vast majority of other countries in the region in 2021, especially from April to July, was the catastrophic shortage of carrots in Russia.

Wholesale prices for quality carrots in Russia exceeded $1/kg in July 2021, and social media erupted with jokes and memes about the cosmic prices of this usually affordable vegetable.

5. Collapse of prices for bell peppers. Price anomalies

Tajikistan experienced an unexpected collapse in the price of bell peppers at the end of September 2021. 11.5 kg of bell peppers can be bought for $1! Naturally, such low prices do not cover the expenses of Tajik farmers for growing these vegetables.

By the way, the drop in the price of bell pepper in Tajikistan happens every year, since growers harvest the entire crop by October and try to sell it quickly. Moreover, bell peppers of all vegetable growers in Tajikistan ripen at the same time. But there has never been such a large drop in their prices in Tajikistan.

Among the reasons are the lack of a cold chain, investment in extending the season and, most importantly, of investment in the development of pepper exports. After all, bell pepper is one of the fastest growing positions in vegetable exports, and the demand for it in Russia, where Tajikistan may well supply its products, was high during this period. We wrote in more detail about this issue, as well as the opportunities it brings, here.

6. Niche breakthrough and value-added opportunities in Tajikistan’s horticultural sector

It is gratifying to see that our efforts to expand job creation and value-added opportunities in Tajikistan’s horticultural sector are bearing fruit. There have been serious shifts in the adaptation of new approaches to the fruit and vegetable business in Tajikistan in 2021.

As part of the project to support the region’s fruit and vegetable trade, implemented jointly by the FAO and EBRD, we held the first online investment conference “Tajikistan’s fruit and vegetable sector – the best investment niches. Where and how is it more profitable to invest?” that aroused genuine interest in new investment niches in the fruit and vegetable business of the country. The recording of the conference available at this link is still watched by many people.

Among other things, the cultivation of saffron in Tajikistan was discussed at the conference. This year, the country has already had the first harvest of saffron. This news caused a real stir in Tajikistan.

Another new undertaking is the construction and launch of a greenhouse for the production of strawberries with low-volume hydroponics. In addition, 6 modern promising varieties of frigo strawberry seedlings were imported from Italy. The project was implemented based on the information provided at the conference.

Thanks to this, dozens of farmers in Tajikistan started working with high-quality planting material, and the country has an opportunity to replace local outdated varieties with modern ones, better in terms of yield, appearance, size and quality of fruits, transportability and, most importantly, taste. This speaks of the prospect of export growth, as Tajikistan could grow greenhouse berries all year round!

The purchase price for strawberries from retail chains in Tajikistan exceeded $15/kg in November-December 2021, which once again proves the investment attractiveness of this business segment. At the same time, the price of strawberries in this period in Tajikistan was higher than in other countries monitored.

Also, a very resonant event was the import and retail sale of blueberries in Tajikistan’s supermarkets – the most expensive berry that can be grown in the country, both for the domestic market and for profitable export. We expect the first blueberry plantations to soon appear in Tajikistan, as we believe it is one of the most promising investment niches in Central Asia.

7. Unprofitable apple growing

Markets in Tajikistan were oversaturated with apples of many varieties since the peak apple harvest in September till December 2021, and farmers complained about record low prices. Despite there being a lot of apples, farmers sold mainly low-quality ones that could not be stored long. In the wholesale trade, apple prices still start from $0.3-0.4/kg.

Notably, farmers in Ukraine and Moldova have long been selling apples of much higher quality at the same and even lower prices, which allows them to earn good money.

Therefore, the complaints of farmers in Tajikistan about the unprofitability of growing apples and low prices are primarily due to an inefficient cultivation. We covered this in the article “Why are Tajik farmers disappointed with intensive apple orchards? ” and analyzed the reasons in the article “Top 10 problems for intensive apple orchards in Central Asia”.

A solution to the problem would be to train Tajik apple growers in orchards in other countries such as Poland, Ukraine or even Moldova. There are also very successful apple projects in Georgia. However, the fact remains – investors are disappointed by the apple orchards and the pace of their establishment has sharply decreased in 2021.

Prices for quality apples in Tajikistan are the same as in Russia, or even higher. Russia, by the way, remains the world’s No. 1 apple importer. Therefore, those who learn how to grow high-quality modern apple varieties in Tajikistan and store them at least until January-February will earn much more than farmers of Ukraine, Moldova or even Russia. The reason is that besides a good climate, Tajikistan has one more important advantage – cheap labor.

8. Onion prices are falling and planted areas are increasing

Onion production in Tajikistan is growing every year, and farmers’ incomes are falling rapidly. In 2021, they reached a critical point, after which reducing the area for the harvest in 2022 is quite possible.

The issue of low prices in Tajikistan and a decrease in exports during the period of peak ripening of onions in Kazakhstan and Uzbekistan, followed by a slowdown in exports, repeats every year. The price of onions in Tajikistan has dropped to an incredible $0.04/kg in 2021, and some traders have already tried to buy onions in bulk even at $0.03/kg.

Notably, just at a time when Tajik farmers can decide to cut onion prices, export opportunities can significantly improve. Onion prices in Russia and Ukraine have skyrocketed this season. Therefore, there may be good opportunities for exporting onions to these countries from Tajikistan in spring.

9. The first plant for deep freezing of fruits and berries opened

Another interesting investment niche that we mentioned at the investment conference was taken in Tajikistan in 2021. In fact, EastFruit experts have been calling deep freezing of berries, fruits and vegetables one of the most attractive investment niches in Central Asia for many years and informing local investors about this.

As a result, Uzbekistan began to dramatically increase the export of frozen vegetables and fruits in 2021. Finally, the first enterprise for shock freezing of fruits and berries was opened in Tajikistan.

At the end of 2021, Harif LLC completed the construction and commissioning of the first freezing plant, capable of processing up to 15 tonnes of berries, fruits or vegetables per day by static freezing. The enterprise was established in the north of Tajikistan, near the city of Khujand. In spring 2022, the plant will start freezing strawberries, raspberries, cherries and apricots. However, since everything can be frozen, the possibilities of freezing other fruit and vegetable raw materials, such as plums, peaches, melons, rose hips, vegetables and even wild plants, will be considered.

In the future, the enterprise may give an impetus to the cultivation of other fruit and vegetables that are valuable for the global market but were not previously grown in Tajikistan. It is another great way to boost a country’s export earnings.

10. New modern onion drying line

The Khujand Agro company installed a new modern line for industrial drying of onions in February 2021 in Tajikistan. The equipment for the line was imported from the EU, Russia, China and India.

The new processing line is capable of drying up to 30 tonnes of onions per day, which is a great support for vegetable growers in Tajikistan suffering from periodic collapses in onion prices. The segment can become very profitable given the low prices for raw materials in the country and can also bring good additional export earnings to Tajikistan, ensuring the sustainability of the vegetable business.

If you think we missed something important, please let us know in the comments!

Сообщение TOP-10 events in the produce business of Tajikistan in 2021 появились сначала на EastFruit.

2021 was not an easy year for Georgian growers and exporters of fruits and vegetables, but despite the difficulties, it ends quite well. Georgian EastFruit team offers 10 main trends and news of the sector.

1. The ability to diversify exports to the most attractive markets while saving on logistics. According to the results of trade in 10 months of 2021, Georgia has already earned almost $150 million from the export of nuts and fruits. The figures for this group are most likely not to change much compared to 2020 and export earnings will be close to $160 million. As for vegetables, we note an unprecedented growth in exports +163 % – from $8.7 million in 2020 to $22.8 million in 10 months of 2021. As for the export structure, the share of Russia is a record one over the past 10 years – 80%. The geography of exports of fruits and nuts from Georgia includes Russia and the EU – 32% and 47%, respectively (based on the data for 2020), but there is a trend towards an increase in exports to Russia this year. While trade with the EU is mainly concentrated on hazelnuts, 80–90% of the rest of the group (berries, stone fruits, apples, citrus fruits) is exported to the Russian Federation.

Although the final trading results for 2021 will be available only in the second half of January, it is clear that the value of Russia as a trading partner of Georgia has grown by 5-7% compared to last year. As the experience of many countries, including Georgia itself, shows, an excessive focus on one trading partner is very risky, especially if it is as unpredictable as Russia. Therefore, the general trend is very negative.

On the other hand, it is gratifying that some Georgian exporters are trying to diversify their exports and are exploring the market of the Middle East. The export of fresh berries (blueberries, raspberries, strawberries) by air is already well mastered, but Georgia is doing bad in exporting such perishable goods by land.

There were the first attempts to export table grapes to Qatar in refrigerated containers through Azerbaijan and Iran this year. This invaluable experience has shown all the difficulties of the process – packaging, the formation of an export batch of high-quality products and the proper control over the entire supply chain. At the same time, we also managed to feel the potential profitability of this direction. Importers from the Middle East give a positive assessment of Georgian fruits and are interested in purchasing table grapes, cherries, peaches, plums and oranges from Georgia.

2. Price and trade swings, records and potato business openings. 2021 started with growers’ protests over low prices for potatoes due to lack of demand, but in the following months external demand increased so much that the export of Georgian potatoes overtook even expensive and trendy blueberries in terms of revenue by July.

Exports in the middle of the year were driven by low stocks and high prices for potatoes in Russia, which previously supplied potatoes to Georgia. Russians bought so many potatoes in the second quarter of 2021 that Georgia even had to import unusually large volumes of potatoes in July and August to meet domestic demand.

When harvest started in September, the exports of potatoes from Georgia became possible again. The reason is the same – high prices for potatoes in Russia due to poor harvests and reduction of areas planted with potatoes. Following the resumption of intensive potato exports in the fall, the Georgian market may face a new potato shortage in the coming months.

Overall, Georgia exported potatoes worth a record $16 million in the first 11 months of 2021, which is 4 times higher than the previous export record. Prices during export periods were the highest (if compared on a monthly basis) in the last 7 years.

The last season has shown that the Georgian supply chain is largely unprepared, with importers buying potatoes straight from fields. However, the situation was unique this year – Russia did not have much choice in where to get potatoes, so the buyers agreed to these conditions. If Georgia wants to be a stable exporter of potatoes in the future, the industry will have to invest a lot of money in storing, washing, sorting and packaging, as well as improving the quality of potatoes.

This is why another major event in the Georgian potato business in 2021 should be noted – some Georgian potato growers became convinced that investments in quality pay off. Potato growers who focused on quality felt more confident and earned more, regardless of the overall supply and demand.

3. Georgia has set a course for the development of the greenhouse sector. According to Georgia’s agriculture development strategy 2030, new greenhouses in the country will be createdon 500 hectares.

Aromatic herbs production in greenhouses is a traditional business for Western Georgia growers who export 50-60% of the country’s fresh aromatic herbs. But the approaches to production, packaging and logistics that we showed in this video remain ineffective and outdated. Therefore, Georgia is gradually losing even traditional markets for fresh herbs, yielding them to Iran and Uzbekistan.

To modernize the sector, increase the technological level of production, handling, cooling and logistics, and thus ensure the export of greenhouse products to a more profitable price segment, as the Italian company Orto Ricci did, the authorities are inviting investors to the country. And if the well-known state project “Plant the Future” and preferential agricultural loans are focused on supporting Georgian companies, then foreign investors are invited to develop the production of vegetables or herbs for supplies to the Russian market or the markets of the former USSR and the Middle East.

The Agrozone Imereti greenhouse cluster provides foreign investors with a unique opportunity to purchase or lease a fully prepared serviced agricultural plot in Georgia through a predetermined foreign investment approval mechanism.

If you have not submitted your application yet, hurry up – applications for participation will be accepted in the Call for Proposals until the end of 2021!

4. Nut production in Georgia is expanding rapidly. In the next 7 years, the production of almonds in Georgia will grow16 times, and the coefficient of self-sufficiency in walnuts has already approached 100%. Therefore, growers who sell the first harvest from modern almond and walnut orchards to the local market are already planning to export. Having experience in managing the quality of hazelnuts, Georgian walnut growers invest in further processing: drying, shelling and sorting. This year two new plants joined the existing walnut processing plant, the work of which is available to watch here. Of particular interest was our video about the work of the Anigosi walnut drying and processing plant.

According to the Association of Almond and Walnut Producers, next year five more factories will be added to the existing capacity, which now reaches 14 tonnes of walnuts per hour. At the same time, there is a shortage of capacities for processing almonds. According to EastFruit, the first almond processing plant is scheduled to open in early 2022. You can see how almonds are harvested in the largest orchard in Georgia here.

In addition to the most popular nuts in the world – almonds, walnuts, hazelnuts and pistachio – American pecans also grow in Georgia. They were initially planted for durable wood production, but hazelnut importers appear to be interested in pecans as well. Although there are no commercial plantations in the country yet, this nut is already being handled for export to traditional markets – the EU and China. According to the growers’ forecasts, the current potential of Georgia is 150 tonnes of pecans per year.

5. Growth in exports and a harvest of hazelnuts with severe quality problems. The situation on the hazelnut market remains complicated. Despite the fact that global trade in hazelnuts is fallingon average by 8% per year, additional pressure on prices is exerted by the collapse of the Turkish lira, the rate of which has more than halved since the beginning of the year. Therefore, Georgian trade slowed down in November and the factories are working on fulfilling contracts.

The hazelnut season turned out to be rather short, as due to the cold spring and heavy rains in August, the hazelnut harvest in Georgia began a week or two later than expected. The rains also affected the quality of hazelnuts from Western Georgia. Therefore, along with the record export volume, we also noted a record number of returns of hazelnuts from the EU due to non-compliance with quality and safety requirements. There were 13 returns in the 2020 season, and there are already 25 returns in the 2021 season, although it’s not over yet. At the same time, the growers claim that when repeated analyzes were carried out in 2021, no traces of aflatoxins were detected.

Could the struggle for quality influence the decision of the global leader Ferrero to sell 1.8 thousand hectares of hazelnut orchard in Georgia to a local company? The question remains open.

Despite the problems, Georgian hazelnut exporters still managed to get the highest export earnings in the last five years. This was due to a poor harvest in Italy and, accordingly, a sharp increase in demand for Georgian inshell hazelnuts, which Italians use for processing. As a result, the export of inshell hazelnuts increased to a record 5.9 thousand tonnes and $16 million in August-November 2021. The total income from all hazelnut exports, which is slightly overestimated due to sorting and re-export back to the EU, amounted to $68 million for the specified period.

The general trend of the last few years – the production of hazelnuts in Georgia is moving to the east – to Kakheti, where favorable conditions are created for the cultivation of hazelnuts due to climate change. Commercial hazelnut plantations in eastern Georgia have already been established by a Swiss chocolate maker, which was one of the main news of the year for the sector. On the contrary, Ferrero sold its plantations in Georgia.

6. The first commercial avocado plantation was established in Georgia. We have repeatedly noted that avocado is the fastest growing positionin the global fruit and vegetable trade. In this regard, the establishment of the first commercial avocado plantation in Georgia by Nutsge on 6 hectares in Lanchkhuti, Guria municipality, was a great news for the region. The owners talked little about the details of the project from the start, although they hoped that by planting the right varieties and creating the right conditions, their project would be a success. The first winter requires special attention, when the seedlings will pass the frost resistance test in practice.

The farm has not yet passed the cold test, as the harsh weather in Georgia is expected in the coming months. Nevertheless, the company has already covered the trees with agrofibre to protect them from frost. It is expected that the temperature in winter will not drop below minus 10 degrees Celsius in the area where the farm is located.

Some problems with the seedlings have already showed up due to excess moisture, which in some plants caused root rot. Heavy rains in late summer and early fall this year have created problems not only for avocados, but also for traditional horticultural crops in Western Georgia, such as hazelnuts and mandarins. Although some of the seedlings have dried up, the company has no plans to replace them with imported seedlings. They plan to work only with plants that survive, hoping to start producing their own seedlings in the future.

7. Blueberry exports growth by 50% to a new record level. Of course, this is a new record. The 2021 season started a week later due to unfavorable weather, and the first early batches become availableon the market at the end of May. Export expectations were high from the outset, and they were confirmed – Georgia received record revenues from blueberry exports in the 2021 season. Export revenue increased by 48% compared to the previous season and amounted to $5.5 million as of August 2021.

By the end of the season, blueberry exports reached almost 1,000 tonnes and increased in volume by 44% compared to 2020. The volume of blueberry exports from Georgia has grown 5 times in 2 years!

There were also some obstacles – panic among blueberry growers and exporters was caused by new rules for access to the Russian market. Exporters refrained from purchasing blueberries for some time after receiving this information, which led to a sharp drop in domestic prices and a temporary suspension of exports. It is possible that if not for these problems, the exports of blueberries from Georgia would have been even higher at the end of the 2021 season.

The EastFruit team visited the orchards during berry harvesting, studied the details of their production and exports, and shared an unique video about the export opportunities of Georgian blueberries. If you are planning to import blueberries from Georgia, EastFruit has prepared a list of the largest blueberry growers with contacts, volumes and photos of plantations.

Blueberries are attracting more and more investments, both in production and technology improvements. A representative office of a leading producer of blueberry seedlings has been operating in the country for the second season.

8. Georgia is increasing the exports of persimmons. Despite the fact that the persimmon harvest was damaged by severe hailin the east of the country in the Kakheti region in 2021, and in some cases it was completely destroyed, the production and exports of persimmon in Georgia increased again.

In 2021, Georgia set a new record for persimmon exports. As of November 2021, Georgia exported 10.2 thousand tonnes of persimmons, and export earnings reached $5.1 million, which is already 9% more than in the same period last year. However, the export data for the 2021 season will change again in December as the exports are still ongoing.

You can find out which persimmon varieties prevail in Georgia at this link.

9. Breakthrough in the production of table grapes. Largely thanks to the promotion of information on the prospects and opportunities for growing table grapes in Georgiaand investments in modern technologies of growing, storage and processing by the FAO and EBRD project, within the framework of which the EastFruit platform was created, Georgia made a real breakthrough in this sector in 2021.

As of the end of November 2021, Georgia had already exported 775 tonnes of table grapes from the 2021 harvest, which is 3.2 times more than exports in the same period of 2020. Let’s remind that earlier Georgia was a large importer of table grapes, despite the excellent conditions for their cultivation.

Almost all exports of Georgian table grapes were made to Russia, creating risks for the industry. Therefore, diversification of exports should be a priority for Georgian growers and exporters of table grapes in the next season.

It is gratifying that Georgia is focusing on the popular and well-known table grape varieties: Red Globe, Thompson Seedless, Crimson Seedless and Regal Seedless. A Table Grape Association has been already established in the country.

In 2021, the first table grapes were harvested by Georgia’s largest grower that owns 30 hectares of modern vineyards. In the first year, the company harvested up to 100 tonnes of table grapes and sold them on the local market.

10. The success of the Georgian kiwi in the global market. Georgia managed to get into the global trade trend and become the leading regional producer of kiwi. Kiwi was second only to blueberries, avocados, cherries, raspberries, durian and mango in terms of growth in global trade in fruits and berries. It is also interesting that Japan, which is demanding on the quality, is the main sales market for Georgian kiwi – since 2016, about 70% of kiwi exports from Georgia have accounted for Japan. Japan also pays a fairly high price for quality fruit. A lot of interesting information about Georgian kiwi is available here.

If you think that we have missed something of the important events of the Georgian produce business in 2021, please write about it in the comments to this article.

Сообщение Georgia: TOP-10 events of the produce business in 2021 появились сначала на EastFruit.

According to EastFruit analysts, after the UK left the European Union, most EU countries have reduced the supply of fresh vegetables, fruits, berries and nuts there. However, Brexit had a positive effect on the export of fruits, berries and nuts from Ukraine to the UK.

In particular, in the first 10 months of 2021, the volume of Ukraine’s export earnings from the supply of fruits to the UK grew 2.4 times and reached a record $4.9 million. Exports of frozen raspberries increased sharply, although they were not the main item of Ukrainian exports to the country. Walnut kernels remained the leader in terms of revenue, accounting for about 63% of all export earnings in the period under review. The revenue of Ukrainian exporters of walnut kernels to the UK in January-October 2021 increased 3.3 times compared to 2020, and the volume of supplies – 3.7 times to 590 tonnes.

Fresh blueberries became second in terms of revenue, bringing Ukrainian exporters 65% more money. By the way, the volume of supplies of fresh blueberries also increased by 65%, which indicates the stability of their price. In total, 217 tonnes of Ukrainian blueberries were delivered to the UK. Frozen berries (raspberries, blueberries and strawberries) and fresh watermelon were supplied in smaller volumes.

We note that Ukraine did not supply a single kilogram of apples to the UK in 10 months of 2021 for the first time in a long period. For example, the volume of Ukrainian apples exported to the UK in 10 months of 2019 exceeded 700 tonnes! Also, Ukraine stopped supplying cherries and inshell walnuts to the UK, and the exports of watermelon fell to 9 tonnes.

Сообщение After Brexit, Ukraine has sharply increased the exports of fruits, berries and nuts to the UK появились сначала на EastFruit.

Blueberries have become one of the most popular crops for planting in Western Georgia over the past ten years. Interest in their production has not subsided, since export opportunities are attractive. According to EastFruit, Georgia has made a huge leap forward over the past four years, increasing its blueberry export revenues from $0.44 million in 2018 to $5.6 million in the 2021 season.

A hazelnut processing company Georgian Products Renaissance has invested in a blueberry farm in the Samegrelo region as well as a sorting and packing facility. The total investment is approximately 3.7 million GEL ($1.19 million), including 1.5 million GEL ($0.48 million) in a 15-hectare farm, and 2.2 million GEL ($0.71 million) in the packaging facility. Financial support for the project was provided by state programs “Plant the Future”, “Co-financing of processing and storage enterprises” and “Preferential agricultural credit”. The company will operate under the name “Blue Bird”. It is worth noting that since 2020, the company has also been producing berries in high tunnels (2000 sq. M.).

According to the co-founder of the company, Ms. Bayi Salukvadze, they decided to invest in the blueberry sector because of several advantages. First is the location – Samegrelo is one of the main blueberry growing regions in Georgia due to the suitable soil and climatic conditions. Another point is the popularity of blueberries in export markets. In addition, Salukvadze named other decisive factors for successful work in this sector.

“We already employ over 80 local people in hazelnut processing. Adding blueberry production will allow us to employ these people year-round and avoid labor shortages during the harvest season. So far, we only hire them from August to May, when the hazelnut season is active. Blueberry production will fill the break in May-July. Another factor is that we have experience in sales in foreign markets, which will help us export blueberries,” Salukvadze says.

The sorting and packaging factory will be set up in February 2022. The first two years – before its own harvest, Blue Bird plans to receive income only from the exports of blueberries purchased from local producers, and from selling packing and sorting services to them.

“We saw the need to open such a plant in the region in the 2021 season, as due to the uncertainty in the Russian market, buyers refrained from buying blueberries, making farmers worry about sales. Our goal is to diversify the exports so as not to depend on volatile markets such as Russia. We strive to sell Georgian blueberries in the markets of Europe and the Middle East, relying on our experience and contacts, but we do not exclude sales in the Russian market. We are now discussing which certification system to choose, leaning towards a stricter system than the well-known GlobalG.A.P. standards such as the Global Food Safety Initiative (GFSI) standards – in order to enter export markets with greater confidence. We will achieve the highest quality also thanks to the latest equipment to be established at the factory,”- co-founder concludes.

Ms. Salukvadze spoke about the existing problem in the overall quality of the products. She says that in many cases, mistakes are made during the harvesting process itself, when pickers don’t pay attention to quality, but try to harvest as much as possible. Thus, the control of the harvesting is critical. The plant’s capacities allow sorting and packaging up to 600 tonnes of blueberries per season. Salukvadze does not expect the plant to operate at full capacity in the first year. They expect to harvest 300 tonnes of quality blueberries.

The farm will be established in 2022. Before deciding on varieties, the founders visited farms in Western Georgia and received recommendations from professional agronomists. Particular attention was paid to early varieties that are already being grown in Georgia. Selected varieties include Legacy, Sweetheart, Colibri, Bonus, Hannah’s Choice, and Gupton. Some of the seedlings will be bought from a local nursery, some will be imported from the USA and Belarus.

Сообщение The blueberry sector in Georgia keeps growing – a $1.19 million project to be implemented in 2022 появились сначала на EastFruit.

According to EastFruit analysts, in 2021 Ukraine increased the exports of blueberries by 65% in volume ​​compared to 2020. At the same time, export volumes of fresh blueberries were 18% lower than in the record-breaking 2019. The downward trend in the price of blueberries, which is unpleasant for Ukrainian exporters, should also be noted – the average export price for blueberries in 2021 was on average 9% lower than in 2020.

“We have to admit that the structure of blueberry exports from Ukraine has deteriorated. Its geography, unfortunately, shows a bias not towards direct exports, but sales to Poland and Belarus. Polish traders then re-export Ukrainian blueberries to other EU countries, earning additional money on them. Belarus, in turn, re-exports Ukrainian blueberries to the Russian market. And these two countries accounted for 65% of the total export of Ukrainian blueberries. The third-largest importer of Ukrainian blueberries is the Netherlands, which is also a major intermediary. Therefore, more than 70% of blueberries from Ukraine were exported to intermediary countries and only about one-third to consumer countries.” says Andriy Yarmak, an economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).

“Considering that the area planted with blueberries in Ukraine, according to various estimates of market participants and experts, is growing by 600-700 or even 1000 hectares annually, we should have expected export growth to levels above 2019 in 2021. However, this does not happen. I do not think that the main reason is the growth in the capacity of the domestic market, although this trend has indeed been present in recent years. In my opinion, the main reason is that Ukrainian growers  cannot yet find an effective technology for growing blueberries, have problems with volume consolidation, post-harvest handling, and do not make enough efforts to promote berries, primarily in foreign markets. This is confirmed by the data on the sale of more than 70% of the berries to intermediary countries, which means that Ukrainian growers have lost millions of dollars in revenue” Andriy Yarmak notes.

In 2021, Ukrainian growers complained about the collapse in blueberry prices, claiming it was record low on the domestic market. However, in their analytical material EastFruit analysts proved that blueberry prices were not record low, although they decreased compared to the abnormal 2020. Evgeniy Kharlan, Director for Strategy and Development of Nikdaria Company (TM IBerry) during the 17th International Conference “Fruits and Vegetables of Ukraine-2021. New Investment Opportunities” on December 3 said that the Ukrainian blueberry market is in for a big shock if blueberry areas continues to grow. This will come true if the berry growers do not start cooperation following the example of fruit producers, who have been jointly selling apples and other fruits for more than a year through the export platform of the Ukrainian Horticultural Association.

Currently, many countries are actively expanding the area planted with blueberries. While many believe that blueberry consumption will grow faster than production growth, this has not yet happened. The world’s leading exporters such as Peru and Chile are forced to reduce the average export price of their berries every year. At the same time, labor shortages and rising harvesting costs are already putting pressure on further expansion opportunities in these countries. Even in the largest EU blueberry-producing countries, such as Spain, growers got a significantly lower price for blueberries for several years in a row than Ukrainian growers. This means that a decrease in blueberry price in Ukraine is inevitable, given an explosive growth in costs in 2022.

Accordingly, blueberry growers of Ukraine should urgently consolidate their efforts to find important technological and marketing solutions in order to ensure sustainable development for this segment. Already now, many investors prefer to invest money in the cultivation of raspberries, the prices for which in 2021 were even higher than the prices for blueberries. The cultivation of raspberries is much cheaper and the investment is lower.

Сообщение Ukraine sharply increased blueberry exports in 2021 due to a drop in prices появились сначала на EastFruit.