The growing supply of local greenhouse tomatoes and rather strong competition with imports provokes a further price decline on the tomato market in Ukraine, EastFruit analysts report.
Back in late May, Ukrainian greenhouses sold tomatoes at 50-80 UAH/kg ($1.69-2.70/kg), but due to the seasonal factor and the constant availability of imports on the local market, prices kept declining.
To date, prices for locally produced red round greenhouse tomatoes have fallen to 30-50 UAH/kg ($1.01-1.69/kg). At the same time, their main buyers have almost no complaints about the quality of Ukrainian greenhouse tomatoes, which, nevertheless, does not help local greenhouse complexes.
Firstly, there are also imported tomatoes on the Ukrainian market. As of mid-June, greenhouse tomatoes from Turkey are offered in Ukraine cheaper – UAH 30-40/kg ($1.01-1.35/kg). In the premium segment of the Ukrainian market, there are also tomatoes from Poland and the Netherlands at prices reaching up to 50 UAH/kg ($1.69/kg).
Secondly, the objective reasons for the current market conditions in the country also affect the situation. Due to the mass exodus of people outside Ukraine due to Russian aggression, the demand for tomatoes and other fruits and vegetables has dipped significantly. In addition, the incomes of people remaining in the country decreased, further narrowing the opportunities for sales in the domestic market.
These reasons will remain fundamental factors in the Ukrainian market, and the further situation will depend on the ability to balance the fall in demand for products in the country with a decreased supply from the occupied regions. Apparently, farmers with summer greenhouses and sellers of field tomatoes from Kherson and part of Zaporizhzhia regions will not be able to enter the Ukrainian tomato market.
It is still quite difficult to say how this will enhance the situation for stationary greenhouses in the remaining regions of Ukraine in summer. On the one hand, the Ukrainians are gradually returning to the country, but the purchasing power is still quite low. On the other hand, the traditional fierce competition in summer may well be replaced by suppliers of imported tomatoes, which are still one of the main reasons for the continued price decline on the market.
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