It’s not a shock in the last half of the Ukrainian apple harvest, since Volodymyr Gurzhiy of Ukrainian apple exporter USPA Fruit had predicted the present situation “My projections for the 2nd part of the year have come as they were predicted. This year’s marketing season isn’t finished yet, however it is already time to declare four new records. The time for exports as a rule, proved to being shorter than my observations. There is no figures, however I am convinced that 2024-2025 will have a record quantity, and we’re witnessing record high prices. In the early part of the season, the prices of industry apples were at record-high levels which is why many farmers supplied such apples to process What is fascinating is the fact that apples that were of a normal grade, that could be found on grocery shelves, were sent to be processed in large quantities.”
Why were the apple juices sent to processing companies? The reason may lie due to the higher prices for other juices from fruit, as Gurzhiy says. “The costs for concentrate orange juice are extremely high, this means that they increase prices for concentrate apple juice. And consequently, prices for the raw materials were quite also high. A low crop this year was another factor for some regions, which suffered significantly from the effects of late spring frosts in 2024. These factors caused us to have the short-term nature of our season, insufficient exports and high prices however, I’d like to mention another factor driving the price increase: there was a huge demand for Ukrainian apple varieties.”
Ukrainian exporters and traders, were aware of the fact the fact that the fruit harvest as well as supply of apples of exported varieties was smaller than average and took action active, says Gurzhiy. “This year, the wars to get the Ukrainian apple did not take place just on the markets that finalize, as well as through the farmers of the nation. We were required to pay an extremely high cost, but records-setting prices for apple products, and also the high price for top or first quality category apples in the country, provided farmers with the confidence to offer their apples at a premium cost in any circumstance. The market for premium Ukrainian apples is at the highest level. Ukrainian retail chains are joining the race for apple varieties, and costs paid by the retail stores in Ukraine can be comparable against international prices. In the present, we receive inquiries from all over the world, however we have nothing to provide them with, as in terms of quality, the risk are very high, and it’s more sensible to market the same apples in Ukraine and with the same, or better prices.”
Market participants were constantly receiving positive news about an soon-to-come end to conflict, it prompted investment in the sector, Gurzhiy states. “Ukrainian farmers progressively began to establish new zones of orchards, and also to improve the infrastructure once positive announcements came through. There is no doubt that the most recent information about the deterioration of the political tensions among Ukraine with the USA could be alarming for the horticultural sector because investment in horticultural ventures will last for a long time and are difficult to pull them out quickly. But, I don’t see anyone abandoneding previous goals. My impression is that Ukrainian enterprises have been familiar with their surroundings and are adjusting with the current political developments.”
“Perhaps my thoughts are positively for the moment time, so I’ll add a bit of reality. Ukrainian gardening along with other fields, is facing an extremely severe lack of human resources, specifically male occupations. The financing provided by banks is costly and when I inform international partners that trade finance costs as high as 24% annum, they do not believe me, as with this kind of cost, it’s very difficult to make it in the marketplace. Grant finance has experienced some modifications in the market as well since almost all USAID programs are now closed and the agency is active in helping the horticulture industry in Ukraine. Additionally, due to the absence of fresh fruit on the market in Ukraine, USPA now also imports apples to fill the gap”
In spite of the public conflict with Trump as well as Zelensky, Gurzhiy doesn’t think that the US will leave Ukraine entirely: “I’m sure that we were able to hold a lot of options, such as natural resources and human resources within our grasp, but the fact is that both Russia as well as the USA fight to get control of these cards of trump. So I’m not convinced that Trump will be able to resign.” Trump will renounce supporting Ukraine. Trump won’t be viewed as a leader in people in the public, nor by American electorate nor Europeans. I believe that Trump uses manipulative techniques that exert influence in order to pressure Ukraine to agree with his peace plan. Like the president Zelensky has demonstrated, Ukraine will not accept peace at all costs. Therefore, there exists a particular tension. My impression is that the reason for the tension lies in specific areas of the peace deal where the two parties hold divergent views. Everybody knows that peace agreements must be made and both sides will have to come to concessions. Therefore, it is beneficial to that the United States to help and collaborate with Ukraine. It is said that the United States has never been closer to overcoming Russia in this area,” he concludes.
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Volodymyr Gurzhiy
USPA Fruit LLC
Cell/ WhatsApp or Viber +380 50 925 532
Email: [email protected]
www.uspafood.com