UPRA: export of fruits and vegetables from Ukraine is reduced against the background of coronavirus


UPRA: export of fruits and vegetables from Ukraine is reduced against the background of coronavirus

03/13/2020

Italy, Norway, Spain, Kuwait and several other countries important for apple export stopped accepting cargo and part of the apple “hung” in ports

Despite the fact that only three cases of coronavirus were officially recorded in Ukraine, the global pandemic has already significantly affected the export of fruits and vegetables. Analysts at the Ukrainian Fruit and Vegetable Association (UPAA) investigated the export situation and possible scenarios in the coming months.

UPAA members, who supplied the apple to Hong Kong and Singapore, were forced to temporarily stop selling products in this region in January and February, as the situation in these countries was rather complicated and there was no certainty about what demand would be when the apple arrived on the market and whether it will be possible to provide quality logistics. The example of China, where in ports for several weeks they did not unload goods with fresh fruits and vegetables during the peak of the coronavirus epidemic, forced local importers to be more careful. Accordingly, several weeks of trading were lost. Now, according to companies, trade with Asia is beginning to recover gradually.

If we talk about Ukrainian exporters of fruits and vegetables, which are supplied to the EU countries, until recently, most companies did not experience any special problems with export. Demand remains high enough, cars pass back and forth without any problems. At the same time, companies have certain warnings regarding free transport in the future, because trucks move with drivers, and different countries begin to introduce 14-day quarantine or a general ban on entry for those who have recently visited Italy, Germany, Spain, France and other countries where coronavirus spreads rapidly.

One of the major apple exporters noted that he already has big sales problems. Since Italy, Norway, Spain, Kuwait and several other countries important for apple export stopped accepting cargo, and part of the apple “hung” in the ports.

See also: Coronavirus increased demand for packaged vegetables and fruits

Also, some of the producers of fruits and vegetables interviewed by the UPAA noted that for several weeks they have been unable to import seedlings and fertilizers purchased in the EU into Ukraine. And this can become a problem for many companies in the coming weeks, because the season of work in the garden has begun, and most of the MTP and other technology elements are delivered to Ukraine from the EU countries, where the biggest problems are with coronavirus: Italy, Spain, France, Germany and the Netherlands.

Retailers note that they still do not feel any particular problems with the supply of fruits and vegetables of Ukrainian production, as well as imported, and demand is assessed as stably high.

If we talk about the prospects, most companies admitted that they cannot adequately assess them on their own, since the situation is unpredictable for several important factors. Among the greatest risks for the horticultural business is the instability of the hryvnia exchange rate and the inability to predict its prospects, the global economic crisis, which could drastically reduce the demand for fruit and vegetable products and the further spread of coronavirus in the EU and Ukraine. Given the uncertainty, Ukrainian gardeners and vegetable growers simply act according to the situation, and so far have not developed any anti-crisis plans. Wholesale representatives who do not have their own production admit that they take into account the option of temporarily discontinuing business activities if the trade becomes significantly more complicated, because now the risks are too great.

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