Ukraine: in the nearest future consumption of fresh vegetables (especially tomatoes) will increase considerably – ProAgro Company research
Taking into consideration the trends that developed in the tomato market we can forecast its further development and saturation. During the recent years, this branch has been developing mainly intensively. Thus, the area sown with tomatoes in 2008 decreased by 24.5% compared to 2000, whereas productivity and production volumes increased by 76% and 33%, respectively.
It can be explained by the growth of the share of tomato production by professional producers and by refusal of part of population from growing tomatoes in the unprofitable backyards. The growth of real incomes of population leads to the increased demand for high quality horticultural products that entails the growth of prices for them that makes this agricultural branch more attractive for investors.
According to the specialists’ forecasts, in the nearest years the growth of consumers’ incomes will be accompanied by a significant growth of consumption of fresh vegetables (especially tomatoes), especially during the period from October to June when vegetables grown in the open ground are not supplied to the market. These trends will cause further development of the production base, including hothouse tomatoes.
Together with the growth of the volumes of production and sale of horticultural products one can expect development of the infrastructure for selling products, and namely the growth of consumption of products by supermarkets and creation of a civilized wholesale market of vegetables and fruit.
In 2010, the harvest of tomatoes is expected to increase by 5-10% compared to 2009. It is expected that by 2015 production of tomatoes will increase by 35-45% and exceed the level of 2-2.3 mln t. At the same time, the share of tomatoes grown in the protected ground will increase from 9.4% in 2008 to 12-13% in 2015.
The Ukrainian market of tomato juice, according to the experts, has huge growth potential. In the nearest future if the present growth rate continues one can expect the increase of competition, including competition of prices: new tastes and packages will appear, and standards for products quality will become stricter. Experts forecast that in 2010 the production volumes will grow by 5-8%, and that the positions of the top three leaders will become stronger. Until 2015, production of tomato juice in Ukraine will exceed 110,000 t.
Market knowledge presenter by ProAgro Company in its research "Ukraine: Tomato Products Market" and, as a consequence, an appropriate positioning in this food industry will assist your company in placement of market accents on Ukrainian tomatoes and their by-products market, as well as in getting potential investors interested.