According to EastFruit analysts, walnuts, which have been leading in terms of exports revenue in the fruit and vegetable segment for many years, in 2020 their leading position was taken by frozen berries for the first time. In 2021, the leadership of frozen berries in this category was further strengthened, especially given the rapid rise in prices for frozen raspberries.
Revenue from the exports of frozen berries and fruits in 2020 reached a record $111 million, having increased by one third in a year. On the other hand, revenue from walnut exports fell by 30% to the lowest level in the last 4 years and amounted to $97 million.
“Global walnut prices have set an anti-record in 2020 due to the oversupply of high-quality walnuts in the US market. This was the main reason for the decline in Ukraine’s export earnings in this category. Last year the planting of new walnut orchards almost stopped in Ukraine, nurseries had to dispose of the seedlings, as there was no demand, and some growers began to remove fruit-bearing walnut orchards. In my opinion, this was a rushed decision. The prices for walnuts are breaking records this year again, but this time they are already record high globally.” says Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).
“Unfortunately, many do not understand that walnut farming is a business for decades, so one cannot be guided by the prices of one year to make strategic business decisions. In 2020, I convinced many people that now is the perfect time to go into the walnut business, because high-quality walnut seedlings in 2020 and even 2021 could be bought really cheap. However, business needs to be viewed comprehensively and strategically. I will tell about the strategies of nuts, berries and other fruit and vegetable businesses and their successful cases on December 3 during the conference “Fruits and Vegetables of Ukraine 2021. New Investment Opportunities“. Given the opportunity of acquiring land ownership, fruit and vegetable investments are now becoming very relevant. I hope that my tips will help many to avoid mistakes at the initial stage of investment, or to adjust existing investment projects,” says Andriy Yarmak.
The expert explains the reasons for the new records in the exports of frozen berries not only by the rise in raspberry prices, but also by the growth in the production of frozen berries in the country.
“Back in 2017-2018, Ukraine could earn almost as much from the export of frozen berries as in 2020, but the freezing capacity was insufficient to process all the berries at that time, so some of berries were sold cheap to the fresh market, used for the production of juices, or even remained unharvested. In 2021, Ukraine will update the record for the exports of frozen berries. Moreover, the proceeds from their exports may even exceed $200 million! By the harvest of 2022, the capacity for freezing fruits and vegetables in Ukraine will reach its peak and Ukraine will be ready for new export records, however, global prices for raspberries in the new season are unlikely to be as favorable. Therefore, already now you need to consider the strategy for exporting frozen berries, so as not to continue losing money on delivering them to Poland, but to start a direct and more profitable exports. I also plan to tell you about this in detail during the conference” the FAO expert clarifies.
According to analysts at EastFruit, Ukraine’s exports revenue from walnuts in 2021 will also grow, but this growth will not be as sharp as the growth in exports of frozen berries. Accordingly, the revenue gap between frozen berries and walnuts will continue to narrow.
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