The Ukrainian company has become a leader among apple suppliers in the Malaysian market and has proposed new varieties


The Ukrainian company has become a leader among apple suppliers in the Malaysian market and has proposed new varieties

05/06/2020

According to the head of the AUSP Fruit company Vladimir Gurzhiy, success was achieved by building a competent marketing policy that was able to meet the requirements of customers.

Ukrainian apple producers are experiencing significant problems associated with the disruption of supply chains, the revaluation of the national currency, low productivity, quality and, as a result, the low price of products offered by customers in foreign and domestic markets throughout the 2019/2020 season. This opinion was expressed by the head of the company AUSP Fruit Vladimir Gurzhiy during the online conference “Fruit and Berry Crust”, held on May 5.

“At the beginning of the current season, when we saw that the apple harvest would be lower and its quality would be worse, we negotiated with almost all market players and made sure that the problems of producers would be significant from the beginning of 2020.

In parallel, we visited our partners in the Middle East region (Middle East – ed.) and staying there for two weeks, they held dozens of negotiations with customers there. At the same time, we saw that, unlike Ukraine, all other countries had the necessary volumes of production, which created a certain pricing policy in this region. We realized that if we began to compete in the highest priority variety, Royal Gala, not only in terms of sales in our target export markets, but also in the domestic market to buy a quality apple, we would certainly help farmers who won, because we would be able to impose a serious price fight, but in this way we lost the margin in sales, ”said Vladimir Gurzhiy.

Having understood this, according to the head of AUSP Fruit, the company decided to give preference to other markets.

“Of course, last year it was more profitable to sell an apple to the countries of Southeast Asia: Singapore, Hong Kong, Malaysia. And in these markets, directly in Malaysia, we again for the second year in a row took leading positions among supplier companies from Europe.

Thus, we moved away from competing in the sale of the most simple from the marketing point of view of the Royal Gala apple variety and tested the sales of other varieties. Some of them had to be sold for the first time to these markets. For example, we sold such a variety as Red Jonarinz to Malaysia and it was very difficult at the marketing level. Nevertheless, we have sold a certain volume of apples of this variety in the market of this country, ”said Vladimir Gurzhiy.

He also said that the most popular apple variety in the markets of Southeast Asia is Fuji, with over 60% red color.

Also, according to Vladimir Gurzhiy, when the representatives of AUSP Fruit visited all the major buyers in the Middle East region, they realized that it is impossible not to sell Royal Gala in this market, because the rest of the varieties are sold in much smaller quantities.

“And therefore, if you do not sell Royal Gala, then you cannot be successful in the markets of the countries of the region.

However, in recent years we have built such a serious marketing policy that we were able to satisfy the requirements of our customers. All this was not about growth points for the company, but about maintaining the loyalty of our customers in this market, ”said Vladimir Gurzhiy.

He also said that at the beginning of the 2019/2020 season, hryvnia revaluation was added to the problems of Ukrainian apple exporters, which “ate” a significant amount of exporters’ margins. In addition, the price of the apple that retail was ready to offer also did not allow producers to feel comfortable.

“Under these conditions, we carried out optimization, which, in particular, related to logistics solutions, work with suppliers,” Vladimir Gurzhiy noted

He also added that logistics costs for shipping in the current season sometimes rose by 40% during the day. “Thus, logistic decisions became unstable and we had to skip certain periods of product deliveries to customers with many of whom we had acquired software sales,” said the head of AUSP Fruit.

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