n fruit market is one of the country's most promising industries. Ukrainian consumers have a great appreciation to healthy lifestyles, with fresh fruit and vegetables as an increasingly essential component. Traditionally, fresh fruits and vegetables have only been consumed during the growing and harvesting season. For the winter period, a lot of fruit and vegetables are still processed and stored by families in their cellars.However, young people are moving to the cities and becoming accustomed to the year-round supply of fresh fruit, resulting in a steady year-round demand for fruit. Demand has almost doubled in the past decade, which has been accompanied by a growing fruit production. According to Fruit Inform, Ukraine is actually the country with the fastest growing fruit and vegetable production in Eastern Europe. Sales of fresh fruit have increased by almost 30 % over the past four years, reaching 1.9 million tonnes. Between 2007 and 2012, the government has implemented a successful subsidy program for the sector. Important driving forces in the market include the exports to Russia and the increase in domestic year-round demand for fresh fruit.
Fruit production
The country has a rich history. Before its independence "the Ukraine" (Republic of the USSR) was a major producer of fruits and berries, which were shipped throughout the entire Soviet Union, but after the independence, the professional production dropped from 3 million tonnes in 1991 to just 766,000 tonnes in 1999. Since then, the sector has been growing again, with an average of 7%, and in 2012 it reached a production of 2 million tonnes. In recent years, the industry has professionalised through the construction of intensive orchards. As a result, the total revenue has increased, although the fruit acreage has fallen. The most important production areas are Vinnitsa, Crimea, Khmelnytsk, Kharkiv, Cherniv and the region of Kherson.
"Fruit production in Ukraine is interesting because of the low costs and wages, favourable climate and fertile soils, whose value increases as the most suitable varieties for each part of Ukraine are discovered and their cultivation is permitted. Moreover, there seems to be a broad knowledge in the fields of supply chain management, plant health and crop protection," says Bertus Meijer, fruit researcher at the Applied Plant Research Centre, part of WageningenUR.
The country has a total of 15.8 million hectares suitable for fruit cultivation. Ukraine's ambition is to become a global player in the top fruit (apples, pears, etc.) and berry markets, with strawberries, raspberries and blackberries as important crops for Ukraine. Nevertheless, the country's potential as a fruit exporter may be limited by poor infrastructure, logistics and sometimes insufficient knowledge, including the operation of refrigeration facilities.
Ukrainian producers are expected to significantly increase their storage capacity in the coming years, allowing them to compete with Poland in the Russian market. According to the website farmer.pl, the country could pose a real threat to Polish apple growers in the coming years. Statistics show that the Ukrainian apple harvest will exceed 1 million tonnes; a 17% increase since 2010, when growers produced 897,000 tonnes. According to forecasts by Fruit Inform, the Ukrainian apple production will continue increasing by 11% per year. The Russian Federation is the largest consumer of both Ukrainian and Polish apples.
Fruit imports
Ukraine is still a net importer of fruits and vegetables. This is mainly due to the aforementioned poor infrastructure, logistics and obsolete storage facilities, which result in the product quality quickly deteriorating. As a result, supermarket chains import good quality winter fruits and vegetables, while in the summer season the imported products cannot compete in price with the domestic produce. More than half of the fruit in Ukraine is imported, mostly from Poland, Spain, Italy and Greece. During the harvest season, fruits and vegetables are mostly sold in markets and on the street. Supermarket chains have high requirements in terms of quality, and due to the lack of good quality fresh produce in the postseason, imports become very important for them.
Due to the poor logistics and marketing and the increase in the apple production, the manufacture of apple juice concentrate will grow. This is due to prices during the harvest season sharply dropping, with the product not being able to reach store shelves in good condition. Ukraine has in the meantime become one of the leading exporters to the European market. According to statistics, the country exported 80,500 tonnes of apple juice concentrate in 2013; 2.2 times more than in the previous year. Only China and Turkey exported more.
After the successful 2007-2012 subsidy program, investments in the further renewal of old orchards and the improvement of fruit storage facilities stagnated. Last year, only 228 hectares for fruit production were planted. However, the Ukrainian Ministry of Agriculture wishes again to provide extra support to the horticultural sector with a development plan. In the recently approved budget for 2014, tens of millions in funding will be granted to hop and berry producers, greenhouse growers and young orchards.
Dutch activities
The Dutch fruit sector has been active in Ukraine. At the main Ukrainian fruit and vegetable fair, Fresh Produce, held in November 2013, there were 12 Dutch companies. Some of the Dutch companies in the Ukrainian market include Fleuren Fruitboomkwekerijen, Verbeek boomkwekerijen, Driesvenplant, Aweta, Van Amerongen, Storex and Van Nifterik. These firms are aware that big profits can be achieved at all levels of the chain. Virus-free starting materials, efficient operations, better storage and logistics, and increased quality are some of the primary goals. Dutch knowledge and equipment can make a significant contribution to increasing the professionalism of the sector in Ukraine, and Ukraine wants to generate an extra added value throughout the production and marketing chain. Ukrainian companies often have a large acreage in mind and are enthusiastic and pragmatic in their work. With an orchard lasting for over 15 years, the utmost care and preparation are naturally required. When in haste, mistakes can be made in the early stages which can later be difficult to repair.
In June 2013, a mission from Ukraine visited the Dutch sector. Representatives of the press, large-scale growers, government and scientists visited Dutch companies active in rootstocks, fruit trees, diseases, research, processing and logistics. The mission has already shown that with the combination of Dutch knowledge and technology on the one hand and the Ukrainian potential on the other, cooperation between both nations can bring good results. Some Ukrainian growers are keen to establish large-scale relations with the Netherlands. To match the high quality of Dutch starting materials and chain management, it has been proposed for experts in the Dutch sector to carry out a practical exploration aimed to connect their knowledge with the Ukrainian realities.
Frederique Vogel, owner of Holland Rosetta, has been long active in the Ukrainian fruit market and closely involved in the mission. He states that fruit production in Ukraine has taken a big step forward since 2000. Intensive and highly productive orchards have been introduced that produce remarkably good quality apples, even though a lot of this fruit never reaches supermarket shelves, as although cultivation, harvesting and storage may be properly done, the product must often be transported over long distances on bad roads. The choice of the location for the production is often made based on the logistics, and not on the climate being appropriate, or the land having the potential to remain productive for several years.
Plant breeders' rights
The biggest problem for the internationalisation of the country's fruit lies at government level. New varieties may not be officially grown in Ukraine, as they must be registered, which can sometimes be a year-long process. As a result, Ukrainian growers have no access to the latest varieties. This registration system dates back to the Soviet era, when the government decided where given varieties should be cultivated in order to protect collective enterprises from large losses. This registration should be abolished because growers prefer to try many varieties out on their lands at their own risk. For Dutch suppliers, the problem is that the breeder's rights are not respected by everyone; as a result, Dutch companies are hesitant to register their newest varieties in Ukraine. Fleuren, for example, has not registered a frost-tolerant pear rootstock.
It is important that exchange missions continue taking place, so understanding can be reached as to the 'why' and the benefits of the Western system. Studies are currently in development to determine which varieties are most appropriate for Ukraine's climatic conditions. It would be good if the top sector made the commitment to abolish the registration system and to respect the breeders' rights.
