Indonesia may replace Russia in Ukrainian fruit export structure
According to Mr. Andriy Yarmak, Economist of the FAO Investment Center, Ukrainian fruits can be in rather high demand in the Indonesian market. Moreover, it is capable to offset completely the loss of fruit exports to Russia, reports Fruit-Inform.
“With rapidly developing Indonesian economy and rising paying capacity of consumers, all the statistical data concerning horticultural trade become obsolete instantly after they were published. Imports grow every month as long as the supply remains abundant. The shelves in supermarkets are full of apples and berries exotic for local consumers. Apples are imported mainly from the US, but European fruits are also present. Prices vary between $3-6/kg,” the expert says.
In addition, Mr. Yarmak is confident of rapid growth Indonesia’s apple imports as well as an active increase in a number of supplying countries.
“According to the official data, Indonesia imports about 200,000 tons of apples. We expect this figure to reach 300,000 tons in 2018. However, I believe Indonesia’s apple imports to reach 700,000-900,000 tons in a decade. It is real, and Indonesia is a great substitution of the Russian market!” he emphasizes.
The expert points out that unlike Malaysia and Singapore, Indonesia shows active demand for large-sized apples, of course, of premium quality and in corresponding packaging.
“An apple seems to be a good present here. As regards berries, they are extremely expensive in Indonesia: prices of blueberries are as high as $30/kg, raspberries - $40/kg, cherries - $35/kg. The supply is rather large. Prices are likely to be lower in summer, but only marginally. However, imports account for almost the whole supply, and consumers used to buy imported fruits and berries”.
At the same time, Mr. Andriy Yarmak emphasizes that import regulations in Indonesia are tighter than in other Asian countries.
“Indeed, everything is not so transparent here compared to Singapore and even to Malaysia,” the expert admits. “Nevertheless, Indonesia will soon have about 300 mln of consumers, who are becoming increasingly rich, making this market incredibly promising.”
It should be noted that the trade mission of Ukrainian food manufacturers to the Southeast Asia supported by FAO and EBRD is coming to its end this week. The Ukrainian delegation has already conducted direct negotiations with companies from Singapore and Malaysia. Indonesia is the final stage of the mission.