Due to the good climate, Ukraine grows very many kinds of fruits.
What berries It is profitable to grow in Ukraine, we will learn from this list:
- raspberries;
- strawberries;
- cherries;
- cherry;
- blueberries;
- gooseberries;
- red currants;
- garden strawberries;
- blackcurrant;
- sea buckthorn;
- watermelon;
- grapes;
- blueberries.
The market for freezing berries in Ukraine is just forming. At the moment it is a new market segment, which is developing very actively.
In 2015, the production of frozen berries exported to the foreign market for half a year amounted to 24 thousand tons. This is significantly more than in the crisis year of 2014. Sales of frozen berries in 2015 brought Ukrainian farmers 9.4 million USD. – This is 3 times more than from the sale of fresh berries.
So why is it profitable to run a frozen berry business? Here’s why:
- berries are easy to transport;
- Frozen berries have a longer shelf life;
- they’re in demand during the off-season;
- berries do not lose their marketable appearance during transportation;
- a more reasonable price in the off-season for fresh berries;
- you can make smoothies from frozen berries. This is a more profitable option for businesses to use the products;
- compote companies buy this type of berry because the raw material is much cheaper for them.
Thanks to the investments poured into the Ukrainian berry business, Ukraine is the third largest exporter of frozen berries in the world. And this is just the beginning. The country is gaining rapid momentum in the production of these products, and soon it will be able to take the first place in the world. For this purpose Ukrainian farmers need to improve and purchase special equipment for freezing and cooling of berries. Also, each producer needs to obtain special certification.
The most popular berries for export are:
- cranberries;
- cranberries;
- blackberries;
- blueberries;
- raspberries.
Countries to which Ukraine exports frozen berries: USA, Lithuania, France, Poland, Netherlands.
List of Ukrainian companies for freezing berries:
LLC “Razdolnoye”, LLC “Sirius – Agro”, LLC “Ternopil Fast-Frozen Products Plant” TM “Sim-Sim”, Moroz, PJSC “Zhytomyr Butter Plant” TM “Rud” TM “Shef-Povar” TM “Khutorok”, EuroDnepr LLC TM “Darus”, PrJSC “Frutika”, Olvita LLC, ARTI LLC TM ARTICA, TM Azhur, Leopolis-Agro OJSC, Ukrainian Berry LLC, TB Fruit, Sanata-L LTD, LLC, Smelyanskaya Khlodnya, LLC.
Frozen berries: European companies
Hortex, Hortino, 4 Seasons, Tolosto, Planet of Vitamins, Berry World, Marteco, StrelaDOO, Sarafruit, Melitopol Cherry, TANDEMUS JSC, Jagodowa Polana, Berry Point, Agro Etalon, AGRI-UNITED, Agroland, NATURALBIO, BELLER HOF, Easy Harvester.
Ukraine’s main competitors in frozen berry exports
Poland, Spain, Serbia, Belarus, Czech Republic.
Frozen berries: Trends in packaging design
The design of packages is bright, colorful, laconic. Ukrainian manufacturer Rud has the most original packaging (on the photo on the left). The Spela company can also boast of a good package design. This manufacturer has two types of packaging: the first one is a 300 g pillow bag (right), and the second one is packed under vacuum in a 200 g cardboard box.
The design of the package is focused on the colorfulness and saturation of colors. It is made in the form of a pillow bag, the material is very high quality, as well as the product itself.
The company “Darus” decided to sell its products not only in bags, but also in cardboard boxes and plastic containers. For consumers, this is very convenient. As for the design, it is quite good.
Packaging is the face of the product. You can order packaging design development in KOLORO. We will find a solution for your brand.
Frozen berry commercials
To promote a frozen berry product, you can use several methods, such as placing advertisements on the internet.
Email newsletter services. For this type of advertising it is necessary to attend various conferences and exhibitions that relate to this type of business, optimize the company’s website and offer customers to subscribe to the newsletter. With the help of your own mailing list you can keep your customers in the tone, and with a good and useful mailing list you can attract new customers.
Television advertising. This is another good way to promote your project. Most consumers watching TV commercials learn about new products that appear on the market. If you need to develop an advertising campaign, contact KOLORO.
Blog advertising. For selling frozen berries, this type of advertising is, oddly enough, very suitable. Now a large number of people are subscribed to different types of blogs. For example: cooking blog or healthy eating blog. The trend of healthy eating is very high, more and more people are trying to eat right, so they visit blogs with healthy recipes.
Frozen berries on the Ukrainian market
Unfortunately, advertising of these products is very underdeveloped in the Ukrainian market today. Potential buyers know little about producers and their products, which affects the purchase of different types of berries. There have been comments from foreign investors that Ukrainian entrepreneurs invest little in the promotion of goods.
In Ukraine, the demand for frozen berries is not very high. This is due to the low income of citizens and the high cost of goods.
According to the State Statistics Committee, Ukrainians have started eating worse. Consumption of fruits and berries in 2015 decreased by 3-4%.
Who buys frozen berries and for what purpose
Most often Ukrainians use berries:
- for making jam (35%);
- as a snack (25%);
- as a filling and decoration in confectionery products (25%);
- for compote (15%).
In our articles you can also read about the situation on the Ukrainian juice market.
Consumer portrait. In many supermarkets that focus on budget goods, frozen berries are sold by weight. In such stores, the consumer’s choice usually falls on them. The key factors here are:
- the price is lower than for pre-packaged berries,
- possibility to buy any quantity (100 / 600 / 1333 grams),
- the product can be seen and touched.
Frozen berries in such stores are bought mainly by working women and housewives with low income (from 4 thousand UAH per family). People with high income (from 7 thousand UAH) buy frozen berries in cushion packs from trusted producers.
Buying situation
Almost every consumer coming to the supermarket knows exactly what they need to buy. When it comes to buying frozen goods, the customer pays attention to:
- packaging (it should be bright and colorful);
- price (must be acceptable);
- expiration date;
- weight;
- CBP (berries labeled “organic” will be purchased more readily);
- of the manufacturer.
Forecasts for the coming years for frozen berry production
Experts and analysts say that among all types of frozen foods, it is the market for frozen berries that is the most important IQF technology will develop most intensively. The global IQF berry market is expected to grow to $14.8 billion by 2026 alone, i.e. the average annual growth rate will be about 6.5%.
IQF (Individual Quick Free zing) is a quick freezing technology for small food products (peas, berries and seafood).
Local farmers give the most optimistic forecast for frozen blueberries. This is due to the fact that blueberries are very valuable for the production of organic cosmetics, medicines and herbal teas. Also today, blueberry has become a major trend among berries. It is also used in large quantities by confectioners in their desserts.
Fresh berries
Popular berries among Ukrainians:
- Blackcurrant;
- Blueberries;
- Strawberries;
- Raspberries.
“Black berry ” – currants and blueberries, not a very “capricious” kind of berries. They do not need very careful care. In addition, there are several types of currants: red and black. Growing currants is not very costly, which can not be said about the blueberry shield. But still the latter is very much in demand among consumers. Gaining popularity among Ukrainian farmers and strawberries. It is grown in almost every region of the country.
In 2014, berry production in Ukraine reached its lowest level. The drop in berry production was due to the annexation of Crimea, the shaky political situation in the country and the economic crisis. In 2014, not only was the berry harvest significantly reduced, but also the Crimean grape crop became unavailable for the Ukrainian market. The volume of gross harvest of fruits and fruits in Ukraine decreased by 13%. Berry supplies to Russia were also suspended, which had a negative impact on the Ukrainian economy.
Since 2015, the berry market in Ukraine has grown significantly. Fortunately, today, with the help of foreign investments, the annual increase in berry production is 4%. According to Serhiy Feofilov, CEO of UkrAgroConsult, in 2016, more than 190-200 thousand tons of crops were harvested – that is more than 250-300 million dollars.
The demand for berry production among Ukrainian farmers has increased a lot. This is due to the low costs of seedlings, care and harvesting. The country’s agrarian business is growing thanks to the climate, good land and investments.
Over the past five years, not only the range of berries in Ukraine has expanded, but also the planting areas. Every year they are increasing.
In 2016, the international conference “Berries of Ukraine 2016: freezing and fresh market” gathered a record number of delegates from around the world for the last seven years. The largest number of representatives was from:
- The Netherlands;
- UK;
- Poland;
- Denmark;
- Belgium;
- France;
- Turkey;
- Germany.
The best-selling berries in Europe:
- blueberries;
- raspberries;
- garden strawberries.
Annual consumption of garden strawberries in Ukraine is 60-70 thousand tons.
Unfortunately, in 2016, due to the political conflict, export supplies of berries to Russia stopped. Ukraine lost its main markets for frozen berries (47%) and almost the only importer of fresh strawberries (98%).
Also at the international conference “Berries of Ukraine 2016: freezing and fresh market” it was said that in 2016 Ukrainian farmers managed to collect a record harvest of cherries for the last 10 years – 90 thousand tons. As for cherries – this type of berries occupies leading positions in exports. But this year export for cherries will be closed. This may have a negative impact on the utilization of this berry.
Today, organic products have become popular all over the world. Delegates from European countries suggested that Ukrainian farmers should emphasize the cultivation of organic berries, as it will not only strengthen the alliance with foreign customers, but also increase the level of sales and, accordingly, the level of the country’s economy.
According to “APK-Inform”, in 2016 the raspberry harvest increased by 10%, which is 69 thousand tons. We rank sixth in raspberry cultivation, but the leaders in raspberry exports are still Poland and Serbia.
Raspberry production in Ukraine: international trade in fresh and frozen berries, thousand tons.
Frozen raspberries: international trade
Strawberries are very popular among Ukrainians. Last year’s harvest amounted to 70 thousand tons. Ukraine ranks seventh in Europe in terms of export of this berry. Every year the productivity of this crop grows by an average of 5%.
As for blueberries, they planted one and a half times more seedlings than last year. Bilberry is an expensive crop, but according to farmers it is very profitable. Since everyone knows about the useful properties of the berry, it is bought for the production of various medicines, as well as for making jam or for freezing.
We can see from this graph that strawberries were the highest yielding crop in 2016.
New berry crops
Sea buckthorn and blackberries are new crops for the Ukrainian market. They have not yet become so popular berries among Ukrainian agrarian business. But in a few years, they will occupy large areas of land. In Europe, these types of berries are very popular. Goji berries, açai berries, black fruit chokeberry are popular among healthy eating. They are used in cosmetology and in supplements for proper nutrition.
Vinnitsa region is the leader in berry growing. In this region a lot of attention is paid to the production of: raspberries, strawberries, blueberries.
In recent years, Ukrainian berry exports have increased to 12.5 million dollars. This is about 8% while the demand for soft berries in the world is – 20%. Every year Ukraine finds new countries to export its products. These countries are: EU, South Africa, Middle East, negotiations with the Emirates are also underway.
European traders like Ukrainian organic berries better. They noticed: the taste of Polish and Italian strawberries and blueberries is less juicy, more “plastic”. Ukrainian berry has a very sweet and natural flavor. It is worth noting that Ukrainian farmers sell their goods 30% cheaper than European ones, which generates demand among exporters.
As we can see from this chart, the Ukrainian berry market started to develop rapidly and bring very good profits. The most profitable year for Ukraine was 2016.
Prices for fresh berries in 2016
In 2016, the sale of berries brought Ukrainian farmers a good income. According to analysts, the average purchase price was:
- raspberries – from 25 to 50 UAH per kg;
- blueberries – from 300 to 350 UAH per kg;
- Currants – 35-50 UAH per kg;
- strawberry 25-60 UAH per kg.
According to UkrAgroConsult, the annual growth of the berry market in Ukraine is 2-4%, and its capacity is estimated at 190-200 thousand tons or more than $ 250-300 million.
Forecast for 2017
Berry prices in 2017 cannot be predicted yet, as weather conditions have a serious impact on the harvest – frosts in the middle of spring often destroy the crop. Also, the price depends on the conditions dictated by the domestic market. The price of cherries will decrease due to the conflict with Russia. In general, the price of berries will depend on the dollar exchange rate, as well as the yield of berries.
Factors that affect berry yields:
- weather conditions;
- soil composition;
- climate zone;
- berry variety;
- seedling planting time;
- level of agrotechnics, irrigation systems, fertilizers;
- quality of pest control and disease prevention;
- harvesting system: manually, with special machinery.
The largest berry growing companies on the Ukrainian market
BETEK, U-BERRY, HAYBERRY, OOO “Ukrainian Berry”, Brusvyana, Small Fruit, FRUTIKA, AGRANA FRUT LUKA, AGRO FRUTIKA BYSHKOV, ADANA-3, ARTEMIDA, LLC “Silverstone Investment”, Polyukhovich, PE, Sanata-L LTD.
World producers of raspberries, strawberries, black currants. In Russia, more than 300 tons of black currants and 160-170 thousand tons of garden strawberries are grown per year. This country ranks first in the world in the production of these crops.
Morocco ranks second in strawberry cultivation , followed by Mexico, Korea, Tunisia, Egypt, Iran and Turkey. Strawberry cultivation has also doubled in South Africa and Australia.
To summarize, once again, we note in which areas berries will be most in demand and with which businesses growers are partnering:
- Making frozen foods.
- Supply to plants producing juices, compotes, various fruit drinks.
- Use in confectionery products.
- The use of raw materials for the preparation of jam.
- Use in the production of natural cosmetics.
- Baby food production.
- Used in tea (special fruit additives, as flavorings).
- Production of wine products.
- Use for various dairy products (fruit yogurt, cottage cheese, etc.).
The material was prepared for the magazine “Brutto”.
Need a forecast for your target market? Contact KOLORO and we will conduct a desk study of the desired segment.
