Is China’s isolation a chance for Ukrainian garlic producers?


Is China’s isolation a chance for Ukrainian garlic producers?

02/05/2020

In 2019, the cultivated area under garlic in Ukraine amounted to 24.1 thousand ha, in 2018 – 22.6 thousand ha

Europeans are looking for an alternative to garlic from China. Therefore, Ukrainian products offer good prospects for export.

It is reported by Landlord with reference to AgroPortal.

The world garlic market is characterized by a constant increase in both supply and consumption. Until recently, China was the largest producer and exporter with a market share of 80%.

However, with the coronavirus in China, the food market is changing rapidly. And Ukrainian farmers should take these changes into account.

“Today we don’t know what the price of garlic will be when China is isolated. Will countries continue to collaborate on contracts, ”says Yulianna Moussa, director of innovation programs and development, Association of Ukrainian and Arab Investors LLC.

“Therefore, the question arises: the price of garlic in the domestic market will double or 5 times? People stop using Chinese garlic, and Ukrainian may not be enough for two reasons. Fans ceased to grow it, and one of the largest enterprises for the production of garlic stopped working. Also in the country there are few warehouses for storing garlic. Therefore, these issues must be approached comprehensively and work for more than one year.

And at such a moment as it is now, cooperation with small and medium-sized producers, cooperative clusters, and associations is especially relevant. To fulfill large orders, it is necessary to unite and collaborate, ”said Julianna Moussa.

As for the prospects on the world market, the analytical department of the Food Export Council (UFEB) predicts that in the coming years garlic will show slow growth and will add 4% by 2022.

The Asia-Pacific region will not lose its position in the garlic topic. Therefore, India and China, thanks to support from the governments of these countries, will remain the main players in the market.

Read also: World garlic market 2019: main trends

UFEB advises Ukrainian producers in exporting to focus on the markets of Europe, the Baltic States and North America, increase the supply of fresh garlic and grow varieties that give an arrow, for example, Hard neсk.

According to the owner of the garlic company of the joint venture UkrAP Anna Morozova, the next season for garlic producers in Ukraine should be successful for several reasons. Firstly, many farmers refused to grow garlic, and retail chains on the contrary began to sell Ukrainian garlic. And secondly, a place is freed up in world markets.

According to the State Statistics Service of Ukraine, in 2019, the cultivated area of ​​garlic amounted to 24.1 thousand ha, in 2018 – 22.6 thousand ha.

At the same time, most of the crops are concentrated in the private sector. So, in 2018, industrial cultivation amounted to only 1.1 thousand hectares. In addition, in 2019, the leader in the production of garlic in Ukraine – the AgroPatriot company (Odessa region) suffered significant losses due to a fire at the enterprise.

“Today, the Ukrainian market suffers from the chaotic process of growing garlic by small farmers, who, not knowing the technological processes, buy low-quality seeds, which leads to 30-60% of substandard products,” says Anna Morozova.

Another problem – the infrastructure for storing the grown product is not developed, few people are engaged in marketing issues. These are factors that hinder market development.

Issues of growing garlic will be considered during the conference “Million from a hectare”, which will be held March 5, 2020 in Odessa (Ukraine), at the Black Sea Hotel. Registration for participation in the event is available at this link.

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