HomeNewsFood City wholesale market in Moscow is oversaturated with Uzbek table grapes — prices are very low and will keep falling
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Food City wholesale market in Moscow is oversaturated with Uzbek table grapes – prices are very low and will keep falling

The supply of Uzbek table grapes on the Russian market is beginning to significantly exceed demand, and this ratio has formed a downward trend in prices, EastFruit analysts report. Russian purchasing retail chains have reduced purchasing prices for Uzbek table grapes by 25-30% over the past month.

At the same time, market participants foresee a further decline in prices for Uzbek table grapes in the near future, despite the current prices being already 20-30% lower compared to the same period last year.

Since the export season of Uzbek table grapes starts in July and its most active phase, which accounts for most of the annual export volumes, lasts from August to November, now is the peak season. Therefore, we can already draw conclusions that the prices for Uzbek table grapes in Russia are not favorable for their growers and exporters.

In an interview with EastFruit, Nodirbek Musayev, the head of one of the largest export companies in Uzbekistan, Musaevs Exim LLC, commented on the current developments: “I estimate the total volume of grape production in Uzbekistan to be higher this year than last year. Accordingly, the supply in the domestic market is higher and the prices are lower than in 2020. For example, in 2021, the prices that Uzbek exporters pay to producers and wholesalers are on average 30% lower compared to 2020”.

“In August, the supply volume of table grapes from Uzbekistan to the Russian market grew so rapidly that the largest wholesale market in Moscow, Food City, is now overloaded with Uzbek table grapes.” Mr. Musaev says.

Read also:  Afghanistan resumes imports of table grapes from Tajikistan

He also mentioned some of the varietal features of the table grape trade between Uzbekistan and Russia. “The delivery of the most popular Uzbek grape variety Toifi on the Russian market will start soon. However, Russian retailers are announcing a rather low price for it. At the same time, Uzbek farmers, taking into account the high prices last year, continue to adhere to high price targets (about $ 0.5 per kg), which makes the exports of Toifi table grapes not attractive  for exporters at this stage,” the expert notes.

The specialist also draws the attention of Uzbek growers to the high level of competition in the segment of white grape varieties on the Russian market.

“I would like to note that there are many offers of white varieties of Uzbek table grapes on the Russian market, for example, Khusaini and its subvarieties, such as Lady Fingers. In addition, there are also many offers for white table grape varieties in Russia from other countries, and the competition in this segment is quite high. But the Russian market has a higher level of demand for colored varieties, for which Uzbek exporters have few offers. As far as I know, it is white grape varieties that are planted on a considerable part of the new vineyards of Uzbekistan. This means that the supply in this segment in Uzbekistan will continue to grow. Today we already see difficulties with selling white table grape varieties. In other words, production is growing, but sales markets are not expanding. Nowadays producing any product is still half the battle. Finding to whom, where and how to sell it – requires as much effort given growing competition in the global markets” Nodirbek Musayev said.

According to the exporter, the downward trend in prices for Uzbek grapes on the Russian market is most likely to continue in the near future. As to new sales markets, according to EastFruit analysts, the prospects for Uzbekistan are far from promising. In particular, our recent material with a rating of the most popular varieties of table grapes in Uzbekistan clearly showed that the industry needs to take urgent measures. The current decline in prices for Uzbek tables grapes on the Russian market is confirming this.

Uzbekistan is the largest exporter of table grapes in Central Asia and is in the Top 15 of the world’s largest exporters. Moreover, table grapes are the main export position of Uzbekistan in the fruit and vegetable sector. From 2017 to 2019, the country exported from 117 thousand to 138 thousand tons of fresh table grapes, and export earnings ranged from $ 98 million to $ 121 million US dollars per year. In 2020, the volume of table grapes exports from Uzbekistan reached 141 thousand tons worth $ 133 million.

The main external markets for Uzbek table grapes are Russia, Kazakhstan and Kyrgyzstan, which together account for about 98-99% of the total export of fresh table grapes from Uzbekistan. Accordingly, Uzbek table grapes are almost unknown outside the post-Soviet space. Small-volume export deliveries of table grapes to Germany are also aimed at immigrants from post-Soviet countries living in this country.

EastFruit

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