According to EastFruit analysts, Ukraine set a new record for monthly exports of frozen raspberries in August 2021. In just one month, Ukraine sold 5.6 thousand tonnes of frozen raspberries to foreign markets, earning $21.5 million. Another record was the average export price of raspberries at $3.6 per kg.
However, these records are most likely to be broken by the end of September 2021, because it is in September that the peak of frozen raspberry exports from Ukraine is usually noted. In addition, prices and demand for frozen raspberries in the global market continued to grow in September, and Ukrainian berry growers are usually actively harvesting and processing remontant raspberry varieties this month.
The previous monthly record for the export of raspberries in physical terms was set in September 2020, when more than 4 thousand tonnes were exported from Ukraine for the first time. Accordingly, exports in August 2021 exceeded the previous record by 44% at once.
It is also interesting to look at the development of average export prices for raspberries in recent years. As you can see in the chart below, an absolutely unprecedented jump in prices occurred at the very beginning of the 2021/22 season. The record for the price is most likely to be set again in September 2021. We wrote in detail about the reasons for the rise in prices for raspberries and the consequences of such a sharp increase in the profitability of the raspberry business in the article “Raspberry Boom 2”.
“Global food prices in 2021 are breaking records. The reasons are rooted in a sharp rise in global inflation due to money supply in many countries and the disruption in the supply chains, a sharp rise in the cost of logistics and even labor shortages due to complicated movement of unskilled labor between countries. However, the rise in global prices for raspberries stands apart – in fact, they have grown more than for any other food product,” says Andriy Yarmak, economist at the Investment Centre of the UN Food and Agriculture Organization (FAO).
“Frozen raspberries are a very small product on a global scale. International trade in frozen raspberries accounts for less than $1 billion, or about 0.05% of international food trade and 0.7% of all fruit and vegetable trade. Its popularity has grown in recent years because of its low cost, therefore, current price rise is a consequence of a sharp rise in the popularity of raspberries. This year the main factor that led to the explosive growth in prices starting from June were the low yield and quality of raspberries in Serbia which is leading the global market” explains the FAO expert.
He also draws attention to the fact that global prices for frozen raspberries began to grow back in 2019. That’s why many countries, including Ukraine, gradually increased the areas planted with raspberries in 2020 and dramatically expanded them in 2021. Raspberry seedlings for spring 2022 are also already sold out in many countries. Therefore, the world may face another round of overproduction of this berry.
“As we have already noted in our analysis of trends in frozen raspberry imports, there has been a downward trend in imports to many of the leading importing countries in 2021 due to the rapid rise in prices for raspberries. When prices rise, consumption tends to decline. Since there is a very wide and growing selection of various types of berries in the world, there is something to replace raspberries for producers of yoghurts, smoothies, confectionery and bakery products. If production grows and, at the same time, demand decreases, the consequences can be bad for prices,” warns Andriy Yarmak.
EastFruit experts believe that as early as next season, growers will not be able to count on the same high level of raspberry prices, unless affected by unfavorable weather condition . By the way, you can read about how to protect a raspberry plantation from frost here.
A detailed analysis of the prospects for the berry business in Ukraine and strategies for its development, will be presented by the leading berry experts of the region during the 17th international conference “Fruits and Vegetables of Ukraine-2021. New Investment Opportunities” on December 2-3, 2021 in Kyiv (Ukraine). In order not to miss this event, register to participate via this link.
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