Revenues from Ukrainian walnut exports down, volumes up
EastFruit analysts say of a fall in revenues from Ukrainian walnut exports, an unpleasant trend for Ukrainian growers and exporters. Despite a 23% growth in walnut export volumes in the first four months of the season 2018/19 (October-January), total revenues from walnut exports decreased by 18% that reflects negative price trends.
«A decrease in revenues and average prices of Ukrainian walnuts was caused both by external factors, such as growth in the supply in the market, and an increase in consumers’ requirements to quality of products. As the main part of Ukrainian walnuts which are now exported is still off-grade, the demand for them significantly decreased in current season that could not but affect prices», said Mr. Andriy Yarmak, Economist at FAO Investment Center.
According to the expert, a decrease in demand for low-grade walnuts and growth in the supply of high-quality products can lead to the situation, when Ukrainian households will cease selling nuts to middlemen over time, as it will be simply unprofitable for them. In a similar way, low purchase prices of industrial apples in this season led to the fact that households practically did not pick such fruits, and the most part of them just rotted directly in orchards.
At the same time, walnuts are still the main source of export revenues among all products of the fruit and vegetable group. Ukrainian walnut export revenues totaled $63 mln in only four months of the season 2018/19. In the same period of the previous season, the revenues reached $77 mln. In total in the past season, Ukrainian exporters of walnuts earned $131.5 mln
Ukrainian walnut exports usually peak in November-December. In this season, walnut exports were unexpectedly high in January 2019 and grew by 61% year-on-year in volumes, but just by 4% in revenues.