The forthcoming apple season is expected to be one of the most difficult that growers have seen over the past few years in the Ukraine.
Despite the non-perfect weather conditions in the spring, apple trees have done quite well through the period, which could result in apple production hitting a new high this year. As a result, Ukrainian farmers will have fewer opportunities to find new target markets for their produce.
Almost all large fruit growers in the Ukraine have had success in exporting apples to the Russian Federation in the past, and it was these exports which backed prices in the domestic market. However, Ukraine has been gradually reducing exports over the past two seasons as competition in the Russian market has sharply grown after Russia's accession to the WTO. Russia remains the main export market for Ukrainian apples.
Ukrainian apple exports totaled 50,000 tons in the season 2010/11. However, in the past season, Ukrainian exporters shipped no more than 9,000 tons of apples despite imports being 7 times as high.
Fruit-Inform analysts believe that Ukrainian growers will be able to raise exports in the new season only under conditions of a significant decrease in prices.
Furthermore, prices will be under the pressure of at least two factors: record high production in Ukraine and high competition in the Russian market. In addition, apple imports may also grow in Ukraine as Poland has also faced a positive production outlook this year.
