Blueberries are one of the most trending superfoods in the world. The growth rates of their global exports annually by 14% and by $ 480 million prove this claim. However, Ukraine, one of the world leaders in expanding areas of blueberries found itself in the top three countries in terms of the rate of blueberries export decline. The average annual reduction in Ukrainian exports for blueberries is 16% per year.

This information was shared by Andriy Yarmak, economist at the Investments Centre of the Food and Agriculture Organization of the United Nations (FAO), during the FTrade Berry Club 2021 berry conference, which was yesterday in Kyiv with the support of FAO and the EBRD. The event was organized by the APK-Inform: Vegetables and Fruits project. International fruit and vegetable analytical platform EastFruit, agromedia agency Sapienza were information partners of the event.

“In terms of annual sales growth, blueberries are now second only to avocados. About 700 thousand tons of blueberries worth $ 4 billion are exported annually,” Andriy Yarmak said.

“Asian countries and the European Union are the fastest growing markets for fresh blueberries. At the same time, the COVID-19 pandemic, despite the fears of berry growers, sharply raised the demand for this most expensive berry in the world. This happened because consumers around the world took care of their own health and learned that blueberries are among the most healthier fruits” Andriy Yarmak explains.

Why did the export of blueberries from Ukraine performed so poorly? Does Ukraine have any chances and prospects in the global blueberry market?

To answer this question, the FAO economist suggested first assessing the prospects for blueberry cultivation in different regions of the world. “The bad news for Ukrainian producers is that there are good prospects for growing blueberries almost anywhere in the world – the first orchard has already appeared even in the UAE.

Today we can see a great increase in interest in the cultivation of blueberries in Uzbekistan and other Central Asian countries, where there are all the necessary conditions to produce berries for further exports. Of course, the fastest growing blueberry production is in the countries of the Southern Hemisphere, that can get a high price for berries, supplying them to the rich countries of the Northern Hemisphere in winter. However, I consider the countries of Sub-Saharan Africa to be the greatest potential threat to them. Good prospects in Africa do not always come true, but they do have the cheapest and shortest sea logistics in the world to the two most important blueberry markets: Asia and the Middle East. In addition, among the advantages of this region, it is worth noting a sufficient amount of land and water resources, cheap surplus labor and a perfect climate for harvesting blueberries in all the seasons, allowing them to select the most attractive market windows. The domestic blueberry consumption market is also growing in Sub-Saharan Africa, which is always an important help for the berry business,” Andriy Yarmak notes.

The expert highlighted another trend – rapid progress of greenhouse technologies that allow growing a wider range of crops in greenhouses. Therefore, there are already many projects in the world for growing off-season blueberries near major markets. According to Andriy Yarmak, the main factor is better taste compared to blueberries transported across thousands of miles and not harvested at the highest stage of ripeness. It is also important that such projects allow to reduce harmful emissions into the atmosphere due to a decrease in the distance of transportation of products, and this is a great comparative advantage for retail chains. You also need to consider that a greenhouse can produce a higher blueberry yield with fewer treatments to protect against pests and diseases.

The production of greenhouse blueberries so far is not an widespead one, but Andriy Yarmak is sure that over time this trend will further develop. After all, blueberries are very expensive now.

Among the most successful blueberry exporting countries, Peru is the leader by a huge margin with an annual growth rate of exports around 35 thousand tons! For comparison, in its best export season, Ukraine exported just over 2 thousand tons of blueberries! Also, Andriy Yarmak highlighted the dynamic growth of blueberry exports from countries that are not yet known in the blueberry business. He suggested paying attention, first of all, to Romania, Serbia, Zimbabwe and Georgia.

And what about Ukraine?

“Firstly, one must understand that Ukraine does not have any strategic advantages in the blueberry business today. For example, climate in Ukraine is less suitable for growing berries than in the EU – this negatively affects productivity indicators. The fact that almost all the components of the technology of the Ukrainian berry market are imported, is somewhat negative. Moreover, labor was earlier an advantage of Ukrainian berry farmers, but there is not enough of it today and it is no longer much cheaper than in the EU. If we consider the lower yield of blueberries, its harvesting per 1 hectare can be even more expensive in Ukraine than in the European Union. Moreover, the investment climate in Ukraine is the worst in Europe.

The growth of the domestic market is a positive factor. However, an average Ukrainian consumer is not rich and Ukraine is the poorest country in Europe. Therefore, as soon as thousands of hectares of blueberries begin to bear fruit and the supply of blueberries rises sharply, prices may collapse dramatically,” Andriy Yarmak says.

Also, the FAO economist attributed the fact that there is no cooperation of berry producers in the country now and the average size of farms is too small which is a constraining factor for the exports of Ukrainian berries. Although, at the initiative of FAO, EBRD and several specialized associations, the country has adopted a legislative framework for the cooperatives in the sector. Therefore, basic opportunities have already been created for the development of cooperatives. “However, we still need to create a corporate culture, learn to work together – otherwise, Ukrainian blueberry producers will be excluded from the global market. After all, stable supply volumes are important for importers,” the expert in the berry market believes.

According to Andriy Yarmak, climate change has recently worsened the yield of blueberries in Ukraine and the payback period of investment projects in this field increased accordingly. This leads to a decrease in the investors’ interest in the development of berry projects in our country, even despite the relatively high prices for blueberries.

In addition, the fall in prices for blueberries in Ukraine and in other countries of the world will be inevitable in the future. This will give an impetus to the export of berries from Ukraine, but in the future, some farmers in Ukraine may start removing blueberry plantations. Moreover, small farmers who deliver berries directly to consumers, receiving the retail price, are likely to remain successful. The fall in prices does not threaten efficient large companies that can independently store, sort, pack and export products. But the middle segment will suffer the most.

The expert also believes that raspberries for fresh market will sell for higher price in the future than fresh blueberries. Therefore, he advises not to dismiss new projects on raspberries production for fresh market in Ukraine and for the purprose of exporting them to the EU.

“The decline in prices for blueberries in the world may lead to a slowdown in their exports, because they are starting to be produced almost everywhere. In this case, blueberries can become affordable and mass-produced. It sounds almost unbelievable now, since there is no processing of blueberries in Ukraine, but they can become a common raw material for processing. Fully mechanized projects with combine harvesting of blueberries, automatic refinement and sorting will become relevant then. Such projects can be implemented on hundreds and even thousands of hectares,” Andriy Yarmak explains.

Taking into account the trends of the world market, the FAO economist emphasized the need for Ukrainian producers to establish logistic chains for export of blueberries by sea, because aviation logistics will gradually recede into the past, as world prices for blueberries decrease. To this end, the cultivation of blueberries should be developed in the southern regions of Ukraine, near the ports, because now blueberries are mainly grown in the central and northern regions. He also drew attention to the fact that blueberries in the southern regions of Ukraine will ripen earlier, being sold at a higher price, will suffer from frost less often, giving a higher return on investment. Moreover, the number of blueberry consumers grows sharply in the southern regions of Ukraine in the summer, as people go on vacation there.

Regarding exports, Andriy Yarmak believes that Ukrainian blueberry producers have now the best prospects for exports to the northern EU countries, the UK and the Netherlands. The latter country is mainly a re-exporter. The markets of the countries of the Middle East and Southeast Asia will remain relevant for Ukraine for some time, while aviation logistics is still relevant and African producers have not actively entered this market.

He also advises paying attention to the size of berries and the need for optical sorting to increase revenue. Indeed, now there is a tendency in the world to increase prices along with an increase in the size of berries. Marketing will be crucial here. “If Ukrainian berry producers can convince the global market that Ukrainian berries are tastier, as apple producers did, prove this with objective reasons and communicate it to buyers, many strategic shortcomings can be compensated for with a higher price.” – Andriy Yarmak sums up.

Сообщение Blueberries cheaper than raspberries and more bad news for blueberry growers from Ukraine появились сначала на EastFruit.

The main season for the strawberries in Ukraine is just beginning, but prices are already decreasing, much more rapidly than in previous years. EastFruit analysts reported.

In a week, wholesale prices for strawberries decreased by 50% and now arrived at 70 UAH / kg ($ 2.55 / kg). A week earlier the price was around UAH 160 / kg ($ 5.83), and last year at the same time, prices were UAH 100 / kg. Thus, the prices for strawberries have already dropped below last year and are now equal to the prices of 2019. Strawberries of a lower quality grade and small caliber can already be purchased in bulk even for 50 UAH / kg ($ 1.82).

According to EastFruit , Ukrainian prices for strawberries have already dropped below prices in Poland, although a week earlier Polish strawberries were more competitive. However, now wholesale prices for strawberries in Poland are already 15 US cents higher than in Ukraine. Also, Ukrainian suppliers have already begun negotiations on the supply of strawberries to Belarus, where prices are higher by an average of one US dollar per kg.

See also:  High season of strawberries in Georgia: offer and quality on the market

We would like to remind you that it will be possible to learn the fundamental analytics of the Ukrainian berry market and see the dynamics of changes in the supply and demand balances for strawberries, raspberries and blueberries during the country’s largest berry conference on May 27-28, 2021 . This will allow each participant to assess the prospects for berry pricing for the new season. FTradeClub Berries will be held offline and will include B2B negotiations with buyers of berries: buyers of supermarket chains, wholesalers, processors and business tours to the agricultural company Eco-Park (commercial production of blueberries and sea buckthorn) and Prestige Fruit Company ( a large export-import wholesale company).

For participation in  FTradeClub Berries , please contact :

Evgeny Kuzin, +380 96 583 6323,  eugenekuzin@gmail.com

Alexander Khorev, +380 67 634 3980,  halex.khorev@gmail.com

Сообщение Prices for strawberries are collapsing in Ukraine появились сначала на EastFruit.

The season of greenhouse strawberries in Ukraine began 2 weeks later than in 2020, in line with the earlier forecast made by the analysts of the EastFruit project.
The reasons for the shift in the current season for berry and vegetable crops have already been disclosed in many articles on the EastFruit portal. The shift of the seasons for early vegetables, berries and fruit, 10 to 14 days compared to last year, is confirmed.

Today, producers of the southern regions of Ukraine offer the first batches of strawberries on average at $ 7.89/kg, and in 2020 the prices for the first berries were the same.
“Remarkable is the fact that the first strawberries from local greenhouses appeared on the market in the first ten days of April last year. And the main reason for the previously predicted lag in the current harvesting season is the atypically cold first half of spring this year,” Olexandr Khorev, an independent FAO consultant says.
There is a clear dynamics of price decline in the first three weeks last year. By 23 April 2020, wholesale strawberries were sold at an average of $ 2.59/kg. However, later the market situation changed dramatically. Cool May with frequent frosts in 2020 resulted into more than 50% of early and medium varieties of open field strawberries dying.
What to expect in 2021? Today there is a clear fact of the shift in the season of greenhouse strawberries in Ukraine, and there are no forecasts for the future harvest from open ground. It is the weather conditions that will once again remain the main regulator of changes in the market situation in this segment.
The leading offline berry conference FtradeClub Berries , organized by the APK-Inform: Vegetables and Fruits project is scheduled for the end of May 2021. The state and development prospects of the strawberry market in Ukraine, along with two other main berries – raspberries and blueberries, will be the main points of the event.

Сообщение As forecasted, the season of strawberries in Ukraine started two weeks later than in 2020. появились сначала на EastFruit.

Most Ukrainian blueberries producers consider the possibility of a shift in the harvest in 2021 due to the cold spring. According to the estimates of producers interviewed by the EastFruit project, the harvesting of blueberries in Ukraine will start 10-14 days later this year than the year before.. However, some farmers believe that under certain conditions there is still time to compensate the slow development of the plant in the spring.

It should be taken into account that there was no early harvest of blueberries in 2020. Moreover, the harvest of early blueberry varieties, as well as many other crops, was almost completely lost, while middle and late blueberry varieties matured later than in 2019. I should also be noted that spring frosts ca-n still take place this year.

“The shift in the berry season, in particular the 10-14 days lag comparing to last year, can only have a positive effect on the future harvest, as there are additional chances to avoid maximum damage from the impact of possible frosts in May 2021,” Yevgenia Nikityuk, representative of LLC “Aurora”, Zaporizhzhia region., Ukraine, says.

Despite the rather cool first half of spring 2021, not all berry producers in Ukraine are 100% sure that the season shifts. “One of the decisive months of the upcoming blueberry season in Ukraine will be June, when higher air temperatures, balanced precipitation and sufficient sunny days will be able to compensate for the lag in the plant development. Accordingly, the ripening dates for blueberries may well reach the same dates as in the previous year,” Fedir Prima from Eco-Park agricultural company, Chernihiv region, Ukraine, says.

If there is a delay in the start of the blueberry harvest, it is necessary to take into account possible changes in the consumption, and, accordingly, prices.

Possible change in blueberry prices in 2021, subject to a shift in the upcoming season.

The shift in the main blueberry harvest season comparing to 2019 took place last year. We will analyze how a possible further shift in the production season in 2021 could affect prices.

As can be observed from the chart presented above, despite the shift of the main season of blueberry production in Ukraine, there were no dramatic price jumps for berries over the past 2 years, both at the beginning and at the end of the season. But the decrease in the blueberries supply in the Ukrainian domestic market in 2020 compared to the previous season affected prices in this segment throughout the entire sales season.

It is also possible that a later start of the blueberry sales season may even work for producers’ benefit in terms of price for berries on the domestic market, at least for early varieties. After all, the season of mass sales of other seasonal local berries, such as cherries and strawberries, ends by the beginning of July, as a rule. However, let’s not forget about the negative influence of the unfavorable winter conditions on late varieties of blueberries, which we covered in ” Duke Almighty “, if the growing season for blueberries is even shorter this year.

Will the shift in the start of the blueberry season in Ukraine open up new opportunities in international trade?

Traditionally, blueberries are imported to Ukraine from Peru and Chile since the beginning of the year. Morocco joins the list of importers by March. According to the project “APK-Inform: Vegetables and Fruits” , the peak of imports from the latter falls in spring. Blueberry suppliers from Spain are also active in spring. The largest number of importing countries is observed in May-June, when in addition to local blueberries, there are blueberries from Spain, Morocco, Poland and Portugal.

If we assume that the main blueberries season would begin earlier in Ukraine, part of the imported supplies, which are not large today, could be replaced with our own berries. However since the average wholesale prices of blueberries imported to Ukraine in May-June are at a rather low level – $ 2.5-4.5/kg, it is possible that a late beginning of the season would be an advantage for the Ukrainian farmers, who are used to sell blueberries at a much higher price.

Ukraine has increased blueberry exports almost six times over the past five years, gaining a foothold in the markets of Belarus, EU countries and for the first time trying to enter the markets of the Middle East and Southeast Asia.

If we compare the data for the last few years, insignificant volumes of blueberries from Ukraine were exported in May-June at $ 5.5-6.1/kg, while the prices on the domestic market were even higher, and the quality requirements were lower. However, the export prices for blueberries increased as the season of blueberries from Spain was coming to an end. Moreover, as a rule, even in the Middle East, imports of Ukrainian blueberries become active only in the second half of July, when prices begin to rise there.

The issues of domestic and international trade in blueberries in Ukraine will be discussed in more detail at the next conference of the APK-Inform: Vegetables and Fruits project – FtradeClub Berries , which has been postponed from April to the second half of May 2021 due to the COVID-19 Pandemic. The dates have not yet been determined, but the format remains traditional and is even expanded, and B2B negotiations of suppliers of fresh and frozen berries with buyers of Ukrainian supermarket chains and practical business tour are added to agenda.

“Having analyzed the above information, we conclude that a possible shift in the harvest season of berries in Ukraine will not have a negative impact at all, both on production volumes and on prices in this market segment. Moreover, it may even bring certain benefits for farmers,” Olexander Khorev, head of the APK-Inform: Vegetables and Fruits project comments.

Experts of the East-Fruit project also note that the shift in the harvest season of blueberries in Ukraine is more positive for the international trade, given the price trends. On the other hand, we should not forget about the possible increase in the supply of blueberries in the European market this year, which may reduce prices throughout the region, as well as the likely increase in supply in Ukraine. Therefore, blueberry prices will also depend on whether the producers will manage to encourage Ukrainian consumers to buy more blueberries.

Сообщение Blueberries season in Ukraine could start later this year – pros and cons появились сначала на EastFruit.

Despite all the difficulties of the berry season in 2020 and a drop in the export of fresh berries, Ukraine still managed to slightly increase the export of frozen berries, according to EastFruit.

Last year Ukrainian processors exported 44.6 thousand tons of frozen berries, while a year earlier, exports amounted to 43.5 thousand tons. The main categories of Ukrainian frozen berries were blueberries, raspberries, and  wild berries.

The export of frozen blueberries from Ukraine decreased by 16% to 20.6 thousand tons, while the country managed to export almost one and a half times more frozen raspberries than a year before (18.5 thousand tons). Also, supplies of frozen strawberries fell significantly, by almost a third, to 2.7 thousand tons, and exports of blackberries and mulberries rose by 56% to a record of 2.6 thousand tons.

“Surprisingly, the exports of frozen raspberries from Ukraine has increased given the high prices for fresh berries in the country in 2020 and a serious reduction of the planted area a year earlier. Nevertheless, the deficit of raspberries was notable everywhere in the European market due to the damage from frosts in Serbia, of which Ukrainian processors took advantage, making both Polish and Serbian suppliers concerned,” Yevhen Kuzin, Head of International Projects at Fruit-Inform.com explains.

In addition, the freezing capacity in Ukraine has significantly expanded over the past few years, and the warm autumn weather made it possible to trade remontant varieties of raspberries until November at high prices both for the fresh market and for freezing. This is confirmed by the significant growth in exports of frozen raspberries in value terms, which doubled to $ 40 million in 2020.

“The weather conditions were quite favorable for the Ukrainian export of raspberries, however the situation for the strawberries, blueberries and other wild berries was exactly the opposite. Thus, the producers of strawberries throughout the season were guided by sales at high prices on the fresh market, and the processors were unable to increase their volume. Meanwhile, a decrease in the collection of wild berries in some regions of the country in 2020 led not only to a drop in exports but also to a significant increase in imports of frozen blueberries, lingonberries and other wild berries from Belarus, which rose almost seven times to 800 tons! “, Yevhen Kuzin adds.

In 2020, Poland remained a key market for the frozen berries from Ukraine and increased the volume of imports of these products by 20% to 17.8 thousand tons. From European countries, a significant increase also occurred in the supply of frozen berries to Germany (+ 84% to 4.2 thousand tons), the Netherlands (+ 46% to 1.7 thousand tons) and Belgium (+ 63% to 1.1 thousand tons).

Meanwhile, China remained the main market for Ukrainian products outside the European Union and again increased its purchases of frozen berries from Ukraine, albeit at a slower pace than before. In 2018, China purchased 490 tons of frozen berries from Ukraine, in 2019 and 2020 – 1.3 thousand tons and 1.4 thousand tons, respectively.

It should be noted that the EU, Asia and the Middle East were identified by the experts of the Ukrainian Horticultural Association UHA as a priority for improving the export of frozen berries from Ukraine. More detailed information on the prospects for the development of Ukrainian exports in 2021 will be presented by Taras Bashtannyk, President of the UHA, during a meeting of the members of the FTradeClub Berries organized by the APK-Inform: Vegetables and Fruits project to be held on April 8-9.

“In addition to a full agenda with leading experts of the industry, suppliers of frozen products will be able to hold meetings with the buyers from Ukrainian supermarket chains. Similar opportunities will be presented for producers of fresh berries, and on the second day the participants of the meeting will visit one of the country’s leading farms for growing blueberries and sea buckthorn,” Yevhen Kuzin says.

Further information about FTradeClub Berries and participation opportunities can be found on the website of the APK-Inform: Vegetables and Fruits project, or can be requested directly from:

Oleksandr Khorev, +380 67 634 3980,  halex.khorev@gmail.com

Yevhen Kuzin, +380 96 583 6323,  eugenekuzin@gmail.com

Olexandra Manko, +380 66 009 3597,  sashchaa@gmail.com

Сообщение Ukraine managed to increase exports of frozen berries in a difficult 2020 появились сначала на EastFruit.