EastFruit recently published a market report on the very difficult situation for growers and freezers in Eastern European as it relates to the main product of this sector – frozen raspberries.
Today, EastFruit analysts provide a complete overview of the Moldovan market for all major berries and fruits used as raw material for freezing, as Moldova is the first country in Eastern Europe where the freezing of fruits and berries begins. Please note that the information is valid for June 17, 2023.
It is also necessary to immediately make a reservation that the market of fruit and berries use as raw material for freezing in Moldova is just beginning to form. So far, very small, even rather tiny volumes are being frozen, compared to what is sold fresh for exports and on the local market. In addition, other types of processing also still prevail in terms of raw material purchasing volumes compared to freezing.
Therefore, the price on the market of raw materials for freezing is actually formed according to the residual principle, while, for example, in Ukraine or Poland, it is the freezers that dictate the prices for individual berries, especially for the raspberries.
Accordingly, in Moldova there is still no specialization into growing products specifically for the needs of freezing enterprises and there is no differentiation according to varieties that are ideal for freezing.
Strawberries
The wholesale price for fresh strawberries on the Moldovan market is 20-27 MDL per 1 kg (1.04-1.40 EUR), depending on the quality. The domestic market consumes part of the berry supplies, and the highest quality produce is exported.
The current allowable level of purchase of raw materials for freezing is estimated by local freezers at 10 MDL (0.52 EUR), therefore, manufacturers of frozen products cannot yet purchase raw materials because the price is too high.
The impossibility of acquiring raw materials will most likely force Moldovan freezers to miss the 2023 season of strawberries.
Also, now there is no information about the active procurement of strawberries for the needs of freezing in Poland and Ukraine. The reason is the same – prices for raw materials are too high, taking into account available alternatives.
For many years, Egypt has been the country that determines prices in this market. Egypt, after the supply of frozen garden strawberries from China to the EU was banned, was able to significantly increase the volume of production and exports of frozen and fresh strawberries. Moreover, Egypt is now actively increasing the exports of frozen strawberries even to China and the USA. In fact, at the moment, no one in the world can offer a more competitive price for this frozen berry than Egypt.
At present, the price of Egyptian frozen strawberries has already dropped to an incredible $0.70 US per kg. Yes, consumers have traditional complaints about quality, but due to the economic instability in the world, the choice of consumers is increasingly dependent on the level of price, especially if the price difference is so huge.
The European berry could compete on BRIX, taste and smell, but not on the price. As a result, end-customers, and processors, and even the usually not very price-sensitive HoReCa segment tend to favor a cheaper product, which makes European processors refuse to freeze large volumes of strawberries.
This does not seem to bother market participants too much. After all, if Europe does not freeze the required volume of strawberries, then everyone has a clear “plan B” – sourcing these berries from Egypt or Morocco.
True, many people forget that the price of 70 US cents per kg for strawberries from Egypt is also not very encouraging for Egyptian producers. Yes, thanks to the devaluation of the Egyptian pound, exports temporarily seem profitable, but sustainable production in Egypt almost fully depends on imported inputs and equipment, which have risen sharply in price for Egyptian producers. Therefore, there is a real threat that the production of frozen raspberries will decline in Egypt due to these factors. And then the situation with prices for frozen strawberries in the winter period of 2023/24 could bring many surprises to consumers.
Apricots
The apricot harvest in Moldova, as in many other countries of the region, turned out to be relatively low this season. The reason were the frosts in the north, as well as in other regions of the country. In addition, the pollination process was also poor due to low temperatures during flowering of the orchards. Many farmers have also reported hail damage in the apricot orchards.
The price of an apricot damaged by hail is now approximately 0.50-0.60 EUR per 1 kg.
Now in Moldova early variety of apricots “Spring Blush” is being picked. It enters the market in small quantities so far, but in a week or two later varieties will begin to enter the market. In early July the harvesting of the Kyoto apricot variety and the mass supply of apricots to the market will begin. The apricot processing season in Moldova usually lasts until August inclusive.
At the moment, we note a high demand for fresh apricots in the Moldovan market, but the harvest forecast is pessimistic and prices may remain rather high. Realistic price of high quality apricots from the field is 20-23 MDL (1.04-1.19 EUR) per 1 kg. Some European customers have confirmed their readiness to buy these apricots from Moldova for 1.30 EUR without packaging costs. Accordingly, approximately at this level the net price for fresh apricots on EXW basis in Moldova can be formed.
It is interesting that, at the same time, the price of an apricot on the fresh market in Chisinau has fallen to 17 lei (€0.88) in recent days.
Participants in the market of frozen fruits and berries predict a high level of prices for frozen apricots in the new season. However, so far, none of the participants can specify the procurement price that freezers can actually pay for an apricot as for freezing.
Sour cherries
Tart cherries blossomed very well in Moldova. Unfortunately, this period coincided with low temperatures. Therefore, pollination was not optimal, development of fruit was uneven, as well as fruit ripening. Also in some regions, massive damage to the sour cherry crop by hail was noted.
Cherry harvesting in Moldova has already begun. The initial estimated price of fresh sour cherries for exports is 27-30 MDL (1.40-1.56 EUR) per 1 kg.
With sour cherries, there are also difficulties in purchasing raw materials for freezing and other types of processing, since so far there are not enough volumes on the market, and the price level is too high. The planned limit level of the price for cherries, which freezers can pay today, is 0.50-0.60 EUR.
Raspberries
In the fresh market of Chisinau, the price of raspberries is about 50 MDL (2.6 EUR).
In the north of the country, export prices for raspberries reach 25-30 MDL (1.30-1.56 EUR). Freezers expect the price to fall further, as the last year’s berries are still waiting to be sold in processors’ warehouses, and the demand for berries has fallen significantly on the global scale, as we predicted in the article “Frozen raspberry market overview at the verge of the new 2023 season: prices, demand, forecasts“.
The raspberry has again approached its cyclical low, as detailed in the EastFruit analytical article Raspberry Price Cycles and Forecasts for 2023.
Farmers predict the beginning of the mass harvest of raspberries this week. Despite the presence of ample frozen raspberry stocks from the last season, the freezers plan to purchase this berry for freezing needs if prices are to reach an economically viable level.
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