November 19 2014, 12:48 Fito-Mag

Ukraine: apple seasonal price growth rates to sharply go down in 2014/15

For the first time over the past few years, the current apple season may be a disappointment for those Ukrainian growers, who plan to keep apples in storage until spring. Ukrainian apples have been growing in price by the end of the season over the past three years with an increase in prices fully covering storage costs and enabling farmers to have steady income. This is partially confirmed by an annual increase in investments into setting out new intensive orchards and expanding apple storage capacity. Ukrainian apples have been stably growing in price by at least 50% in the period from October to April over the past 3-4 years, despite a steady increase in apple production in Ukraine.

It should be noted that the price growth was partially connected with an artificial increase in reference prices for imported apples in Ukraine in the past two seasons. In addition, imported apples became significantly more expensive in the previous season due to the devaluation of the Ukrainian hryvnia.

As regards the season 2014/15, Ukrainian growers will have fewer opportunities to raise prices. A further increase in internal production, relatively low quality and restrictions on exports to Russia will negatively affect apple prices within the whole season. The devaluation of the Ukrainian currency will somewhat restrict imports, but any attempt to raise prices made by Ukrainian farmers will immediately be followed by a rise in imports of Polish apples, which prices are half as high as registered a year before.