Ukraine cuts apple exports because of critically low prices

Ukraine in October cut exports of organic apples for processing by 42% compared to October last year, to 2,200 tonnes due to overproduction and critically low prices of this type of fruit, the Ukrainian Fruit and Vegetable Association's press service reported.

"In October 2018, only 2,200 tonnes of apples were exported from Ukraine, which was 42% less than in the same month of 2017. Thus, exports of apples in the first four months of the current season totaled only 7,600 tonnes and were 7% lower year-over-year. If we consider that organic apples for processing already account for a rather substantial share of apple shipments abroad, then the situation looks even more critical," it said.

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Excess production of apples for processing this year is estimated at 150,000-200,000 tonnes, and amid critical prices of apples, their exports continue declining compared with last year's figures.

Project manager for the development of Ukrainian exports and economist of the Investment Center Division at the Food and Agriculture Organization of the United Nations Andriy Yarmak says that the situation is due to the use of outdated apple growing technologies.

"Even in 2018, many producers could have gone for technologies for growing apples that could be exported as far as to Asia, but they hadn't, hoping that 'sales will happen on their own.' In addition to outdated varieties and technologies, a big problem faced by Ukrainian gardeners is a huge mutual distrust, which leads to a lack of cooperation between them, the underestimated importance of investment in marketing, as well as in regular exports," Yarmak said.

The Association's press service added that today, small-sized Ukrainian farms cannot sell premium apples even for UAH 2.5 per kg (less than 10 cents per kg), while manufacturers who have invested in marketing and technology can ask prices 5-6 times higher.