This week, the trend towards dropping prices for blueberries was evident in the Ukrainian market. As per EastFruit analysts, the farmers are selling their berries with prices that start at around 80 UAH/kg. This amounts to less than $2 US per kilogram. In fact, it’s around $1.9 which is 1.8 euros per kilogram.
This is a record low price for blueberries in Ukraine. In addition, raspberries that are to be sold on the fresh market are available wholesale at not less than 100 UAH/kg while frozen raspberries vary from 60 to 80 UAH/kg. The experts had anticipated this trend many years ago.
In the past, a drop of $2.5 to $2.5 per kilogram was shocking to producers, however these drops were sporadic and generally lasted for less than a few days or. The time that the majority of blueberry plantations were set up in Ukraine and Belarus, the median wholesale cost for the berry was not to below $6-7 USD per kilogram.
The devaluation that has been a major factor in the Hryvnia as a result of the massive attack of Russian forces is evidently been a factor, however even with hryvnia prices for blueberries in Ukraine have reached the lowest level in history.
What is the reason that has led this costly and premium fruit to be deemed unworthy of its value and to stop being the most expensive berries on the market despite shortages of labor in harvesting, a high level of cost of cultivation, as well as its “superfood” characteristics as well as potential health advantages?
Andriy Yarmak, Economist in the Investment Department of the Food and Agriculture Organization of the United Nations (FAO), recognizes the various factors that resulted in this scenario, however he is not adamant that it’s the end of the blueberry industry in Ukraine.
“Falling blueberry prices is a natural consequence of the growing global demand. The prices below $2 for a kilogram of blueberries in fresh form have been the norm for growers across the world’s top exporting countries. This is vital for the development of the berry as the low cost of blueberries encourages consumers to buy more and also forces farmers and stakeholders in the marketplace to look for methods to improve the production and efficiency of marketing,” According to Andriy Yarmak.
“At the at the same at the same time, Ukraine does not necessarily require selling blueberries for the price they are at. Ukrainian blueberries may have distinct advantages on the market compared to competitors however, these benefits need to be properly communicated and recognized, much like what Ukrainian apple farmers have to do. In the beginning of development in the production of blueberries it was repeatedly stated that the marketplace structure of Ukraine will eventually result in price shocks for producers. In order to be able to export direct production, farmers must be able to gather chill, sort and then pack twenty tons of blueberries that are of similar quality within two days. At present, 99.9% of producers do not have this ability, forcing them to market their products in the local market with limited options which have further diminished after the massive invasion” says the expert.
In spite of the low cost, Yarmak believes that blueberry cultivation in Ukraine is and will continue to be lucrative. The ones who cannot directly export their blueberries must or continue to consolidate and invest in infrastructure, or work together with other farmers. In the present the direct sales of small blueberry farmers don’t produce the same results they achieved three to four years ago. And it is even harder for those who are unable to “stay in the water” for the foreseeable future.
Concerning investments that are new, EastFruit suggests that the circumstances in Ukraine aren’t the worst in spite of the minimal cost. The main advantage is years of experience with the cultivation of blueberries in Ukraine with tested varieties, modern technology, and effective methods of marketing. The case of Yevhen Kharlan, a member of “Nikdariya” (TM iBerry) which sells fresh blueberries to grocery stores across Germany, Spain, and Luxembourg shows that it is feasible to succeed. We would like to have direct deliveries of blueberries that are fresh from Ukraine to stores across all of the Middle East this year.
“I am convinced that this year, we’ll see a an increase in the freezing blueberry sector in Ukraine in spite of terror attacks against the country’s infrastructure for energy. Three or four years ago the market for frozen blueberries was not even a thing, but today it’s growing in size. There’s a demand in Ukrainian frozen blueberries, both within the EU as well as Asia. This is a boost for the blueberry market in fresh form as well as its growers,” adds Andriy Yarmak.
It’s worth noting that China is now opening their market of frozen blueberries made from Ukraine however, the market for fresh blueberries is shut.
Source: east-fruit.com