Wednesday, 07 December 2016 15:09

Lessons of the Russian embargo. Results of the thirteenth international conference "Fruits and Vegetables of Ukraine-2016. Profitable solutions"

Despite the Russian embargo, Ukraine continues to increase export of fruits and vegetables. For example, strawberry export from Ukraine in 2016 has increased by 25 times! In September this year export of watermelons and melons has reached record levels, blueberry suppliers to foreign markets grew by 4 times. The major buyers of these berries were the EU countries. Besides, Ukrainian farmers increased the exports of greenhouse tomatoes to the EU by 60%. All this is happening in those conditions when only a couple years ago Russian Federation was the only market for Ukrainian fruit and vegetables export.

Fruit and vegetable market experts are unanimous in opinion that European importers focuses, first of all, on reliable partners that can provide with a stable supply of quality products and not on the searching process of the cheapest options.

For successful entry of Ukrainian farmers to European markets, first of all, we need to develop competent commodity production and improve supply system.

During his speech, Denis Sazonov, Managing Director of LLC "Green Team" has noted that Ukrainian farmers are mostly guided by the current market trends, adjust their plans which depend on the possibility to make money today and now without counting on the long-term perspective. As a result, manufacturers are totally depend on market changes which often leads to losses.

Currently, company "Green Team" is successfully exporting peeled onions to the UK and we hold this position on the market for years. Accordingly, we have experience on this market and we are always ready to share this experience.  Moreover, the secret of exports to the EU is only one - one should work for the future perspective. This is what leads to the fact that export gets systematic, not only for one-time use. For example, when we started to export peeled onion to the UK we understood that we could sell onions in the domestic market in 3 times more expensive. However, we also understood that this will allow us to establish a long-term relationships with foreign partners.

Besides, European importers are willing to buy only high quality product. Thus, saving on preselling preparation, packaging and logistics can be a result of potential customers’ loss.

«We are constantly experimenting. Experiments were as successful and as not, but it allowed us to get the necessary experience and came to conclusion that the quality of transportation and packaging must meet the products and partners quality requirements. The savings can lead to customers` loss and as a result to financial losses. For example, we try to move to the full mechanization, despite the cheap labor. First of all, it promotes to "predictability of production" and the fulfillment of duties towards partners "- emphasizes Denis Sazonov.

Thus, Ukrainian manufacturers of products with high added value which for many years have been working in tough market conditions, relying only on themselves, prove that they are ready to face all market challenges. Despite very difficult two years, the fruit and vegetable segment of Ukraine`s agribusiness is growing as the fastest as it possible!

The most interesting phenomenon of fruit and vegetable market is that its rapid growth does not only exhaust its possibilities but also creates new much more promising niches for investments that promote well-being in rural areas due to very high demand of labor and other resources and allow to significantly increase export earnings of the country. Based on http://www.fruit-inform.com 

 

 

Last modified on Tuesday, 13 December 2016 11:49

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