This week, the trend of rapidly falling blueberry prices continued in the Ukrainian market. According to EastFruit analysts, farmers are now offering their berries at prices starting from 80 UAH/kg, which is less than $2 USD per kg. More precisely, it's about $1.9 or 1.8 euros per kg.
This marks an all-time low for blueberry prices in Ukraine. Meanwhile, raspberries for the fresh market are being sold wholesale for no less than 100 UAH/kg, and raspberries for freezing range from 60 to 80 UAH/kg. Experts had predicted this development several years ago.
Previously, a price drop to $2.5 per kg was shocking for producers, but such declines were episodic and typically lasted no more than a week or two. When most blueberry plantations were established in Ukraine, the average wholesale price for this berry did not fall below $6-7 USD per kg.
The serious devaluation of the hryvnia due to the full-scale invasion by Russian forces has obviously played a role, but even in hryvnia, blueberry prices in Ukraine are now at a record low.
What has caused this once premium and expensive berry to lose its status and even cease to be the most expensive of the mass-market berries, despite labour shortages for harvesting, high cultivation costs, and its "superfood" properties and health benefits?
Andriy Yarmak, Economist in the Investment Department of the Food and Agriculture Organization of the United Nations (FAO), identifies several factors that have led to this situation but does not view it as a tragedy for Ukraine's blueberry industry.
"Falling blueberry prices are an inevitable result of increased global production. Prices below $2 per kg of fresh blueberries have long been common for farmers in the largest exporting countries. This is crucial for the future of this berry, as an affordable price stimulates consumption and forces producers and other market participants to find ways to increase cultivation and marketing efficiency," says Andriy Yarmak.
"At the same time, Ukraine does not necessarily have to sell blueberries at such a low price. Ukrainian berries can have several undeniable market advantages over competitors, but these advantages need to be effectively communicated and marketed, similar to how Ukrainian apple producers do. Even in the early stages of blueberry production development, we repeatedly warned that the existing market structure in Ukraine would inevitably lead to such price shocks for farmers. To enter direct export, producers must be able to collect, cool, sort, and pack 20 tons of blueberries of uniform quality within two days. Currently, 99.9% of producers lack this capability, forcing them to sell on the local market, which has limited opportunities that have further decreased after the full-scale invasion," notes the expert.
Despite the relatively low price, Yarmak believes that blueberry cultivation in Ukraine can and should remain profitable. However, those unable to enter direct export need to either continue consolidating and investing in infrastructure or join forces with other farmers. Even now, direct sales for small blueberry producers do not yield the results they did 3-4 years ago, and it will be even more challenging for them to "stay afloat" in the future.
Regarding new investments, EastFruit suggests that the conditions in Ukraine are not the worst, even despite the low price. A significant advantage is the accumulated experience in growing blueberries in Ukraine, tested varieties, developed technologies, and effective marketing approaches. The example of Yevhen Kharlan from "Nikdariya" (TM iBerry), who sells fresh blueberries directly to supermarkets in Germany, Spain, and Luxembourg, demonstrates that success is possible. We hope to see direct deliveries of fresh blueberries from Ukraine to supermarkets in the Middle East this year.
"I believe that this year we will see significant growth in the frozen blueberry segment in Ukraine, despite terrorist attacks on the country's energy infrastructure. 3-4 years ago, the frozen blueberry market barely existed, but now it is becoming substantial. There is demand for Ukrainian frozen blueberries both in the EU and Asia. This provides additional support for the fresh blueberry market and its producers," adds Andriy Yarmak.
It is worth noting that China has opened its market for frozen blueberries from Ukraine, although the market for fresh blueberries remains closed.
Source: east-fruit.com