FAO and the EBRD have evaluated the export potential of Ukrainian produce
Author photo: Gregory Szalai, “Today”
International organization FAO and the EBRD has completed a major study “Improving access of Ukrainian agribusiness to export markets”. It can be called one of the most comprehensive analyses of the fruit and vegetable market and a road map for development of this segment of agriculture.
The food and agriculture organization of the UN (FAO) is implementing in Ukraine a number of programs aimed at reforming the agricultural sector and the development of its export potential. Analysis of segments of the agricultural market and the formulation of proposals on its development – one of the points of the framework program of cooperation between Ukraine and the FAO for the years 2016-2019. Previously, FAO presented an analysis of the meat and dairy market of Ukraine.
For the European Bank for reconstruction and development (EBRD), the agricultural sector is also one of the main directions. During the cooperation, the EBRD has financed over 400 different projects in Ukraine, of which over 70 – in the field of agriculture.
Rated products with the highest export potential
The authors of the study made a rating of the crops that are traditionally grown in the Ukraine and where it is possible to earn not bad, selling them to exporters. Admittedly, the list was quite unexpected. This traditional export product, such as grain, in this case at all was not analyzed (it is considered a different market segment). But, for example, potatoes, which occupies the major share of the market of fruits and vegetables, and 64.9% in this rating was only on the 38th place. Even the apples took only 13-th position.
Basically on the first positions there were berries. Their consumption is increasing worldwide, which is associated with the enthusiasm of humanity, healthy lifestyle and healthy food. For example, purchasing raspberry for the last 3 years on a global scale grew by 23%, blueberry by 29%. And in Ukraine is quite favorable conditions for the collection and cultivation of these products, the authors of the study.
The rating of agricultural potential for export and, respectively, for earnings looks like this:
Next on the list are blackberries and fresh cherries, frozen, raspberries, melons and watermelons, asparagus, fresh strawberry and pumpkin. Completing the list of the 40 crops potatoes, black currant and peach.
The authors also give a list of countries which ready to import Ukrainian products. So, according to their observations, Ukrainian walnuts and blueberries are most likely to take Germany, the Netherlands and the UK. Raspberries, blackberries and cucumbers – Poland. Garlic – the United States, Canada and the UK. Cherries – Germany and China. In General, the top three countries where it is possible to export a wide range of Ukrainian agricultural products entered Germany, USA and UK.
How many actually are “export” berries
For the Ukrainian consumers, the export rating of attractiveness is, rather, a list of products that in the coming years can appreciate. After all, the price of local vegetables and fruits we traditionally lower than in Europe, but only as long as manufacturers will not work with their products to foreign markets. Then prices in the country are usually “catch up” to the export prices.
The authors of the study calculated how much you can earn producers, if they send their products for export.
For example, blueberries in the past year were sold in the UK retail for 17 € 8 per kilo. Taking away from that price retail margin and transportation costs, the study authors came to the conclusion that the Ukrainian manufacturer wholesale price pure berries in the field, subject to costs of collection when exporting to the UK may amount to 8.64 euros per kilo, or 266 UAH. When exporting to the US, where blueberries are sold at 25,86 Euro, the revenue of the producer will be 12,1 Euro/kg, or more than 370 UAH. Now in Ukraine on the wholesale markets blueberries sold at 120-180 UAH per kilogram.
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