According to EastFruit analysts, Turkmenistan, to a greater extent, and Uzbekistan, to a lesser extent, are facing significant challenges in selling greenhouse vegetables. The biggest issue currently is in the segment of greenhouse tomatoes, although usually it is the peak season for this product. The main reason for the very slow demand is the decline in the purchasing power of Russian buyers.
As of today, Turkmenistan’s greenhouse farmers report enormous difficulties in selling their products even at a price of $1 per kg. Actual prices are already below this psychological threshold. They complain about a sharp drop in demand for their products in the Russian market, which is constantly putting pressure on prices. It is worth noting that Turkmenistan has been rapidly increasing its greenhouse areas and production volumes of greenhouse tomatoes in recent years.
Tomatoes are not much more expensive in Uzbekistan either. Prices are on average 32% lower than last year. Moreover, the wholesale price of greenhouse tomatoes in Uzbekistan is one of the lowest in the past five years in US dollars. Currently, small wholesale volumes of round red greenhouse tomatoes in Uzbekistan can be purchased for $1.17 per kg, and for large batches going for exports, the price will be comparable to that in Turkmenistan. However, due to the quality differences, price is presently higher than on the local market, as Uzbek exporters prefer selling better quality tomatoes to foreign markets.
Exporters from Uzbekistan mention that the devaluation of the ruble and overall instability in the Russian financial market are worsening the prospects for exporting greenhouse products to this country.
Read also: Greenhouse business expansion of Turkmenistan continues: tomatoes are now exported to Uzbekistan!
Interestingly, according to insider information from wholesale trade representatives, Uzbekistan has lifted the informal ban on importing greenhouse tomatoes from Turkmenistan into its own market, and the first batches of products are already being prepared for exports. This could further increase the pressure on prices in the domestic market of Uzbekistan.
In reality, both countries urgently need to seek opportunities to diversify their greenhouse vegetable exports because high dependence on the most unreliable trading partner in the world, which is Russia, always poses a huge risk.
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