Double increase in the price of apples due to industrial storages. Myth or reality?


Double increase in the price of apples due to industrial storages. Myth or reality?

07/01/2020

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2020 has already presented many surprises not only to Ukrainian manufacturers, but also to average consumers. The spread of the coronavirus pandemic, the destruction of supply chains, the closure of food markets and abnormal weather are far from all the surprises that the first half of 2020 managed to “please”. Moreover, June continues to hold the mark of the most unpredictable and unstable year. In the first month of summer in Ukraine, several historical price records for fruits and vegetables were recorded at once, while, according to market participants, a positive price trend for some positions may continue in July.

The greatest increase in value is demonstrated by apples, which have risen in price almost 3 times over the year. To date, the average wholesale price for apples ranges from 30-31 UAH / kg, which, of course, cannot but rejoice those gardeners who were able to keep the products until this time. However, there are very few Ukrainian farmers who today supply relatively large quantities to the market. The absence of modern refrigerated warehouses at most producers does not allow them to “hold on” apples until the period when prices rise. Nevertheless, according to market experts, in recent years interest in industrial warehouses has been growing.

As notes Anatoly Bogdan, Director of Insolar-Cold involved in the design and construction of storage facilities for fruit and vegetable enterprises in Ukraine and abroad, in recent years the production of high-quality apples has been growing, therefore, many enterprises are investing in high-quality storage. “Today, without modern, industrial storage facilities, sorting and packaging lines, it is impossible to export and work with retail chains that increase product requirements every year. The number of high-quality refrigerated warehouses has been increasing in recent years. The number of manufacturers that establish modern sorting and packaging lines is also growing, ”the expert comments on the market situation.

However, despite such a positive trend, there are very few Ukrainian apples on the market in May-July. During this period, most of the supply on the market is imported products.

“Today, modern technologies of industrial refrigerated warehouses allow storing a high-quality apple throughout the entire calendar year. Especially, dynamic gas storage facilities have proven themselves well. This type of storage has several advantages over its counterparts. Firstly, the quality of apple storage in storages with a dynamic gas environment is much higher, the products remain denser, which, in turn, allows you to increase the period of sale after laying in storage. Secondly, this type of storage allows you to eliminate the sunburn defect on the apple, which is especially pronounced on green varieties, ”Anatoly Bogdan lists the advantages of industrial refrigerated warehouses.

It should be noted that some Ukrainian manufacturers have already tested storages with a dynamic gas environment, and were satisfied with the results. In particular, the company Insolar-Kholod completed the construction of such a storage facility for the Dnipro Gardens enterprise last year. In May of this year, Dnipro Gardens was able to successfully export premium quality apples to Malaysia, and it was possible to make such a supply, not least because of the high quality of product storage.

See also: Tunnel freeze berries are in greatest demand in the Ukrainian fruit and vegetable sector – Anatoly Bogdan

Therefore, with modern storages, Ukrainian apple producers may well be able to sell part of their products in May and June, when apple prices are rising. For comparison, at the beginning of this season (September – November) apples on the Ukrainian market cost an average of 10-12 UAH / kg, now Ukrainian producers ship apples starting from 30 UAH / kg.
Of course, we can say that this season several factors influenced the high price of apples at once: low harvest in 2019, a large number of low-quality products, increased consumption of these fruits during quarantine, and high prices for berries and stone fruits. However, the tendency for apple prices to rise in price by the end of the season is observed from year to year. In addition, the fact that most of the supply on the market in May-June is Polish products is also traditional for the Ukrainian market. Even at the end of the record season for Ukraine in 2018/2019 (according to the State Statistics Service, 1.47 million tons of apples were harvested), when local farmers sold their products at 4-6 UAH / kg in October-November, the bulk of the offer was imported apples . Moreover, their prices were on average 2-2.5 times higher than at the beginning of the season. Consequently, many farmers who have modern storage facilities benefit from the fact that they can begin selling their products at a time when supply on the market decreases and prices rise.

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