Ukrainian Apple Price Decrease Due to Low Consumption and Export Volume

The export prices of apples in Ukraine are at their lowest level ever, trading at around USD 0.20/kg at farmgate prices. The primary reason is a decrease in domestic consumption caused by the evacuation of more than 20% of the Ukrainian population due to the Russia-Ukraine war. Another major factor is low export volumes due to logistics constraints into Europe via rail and international markets via the Black Sea. The situation is exacerbated by competition from imported fruit with bananas being the main competitor of Ukrainian apples. Imported bananas are three times more expensive than apples, reducing the competitive pressure slightly. Ukrainian apples can also withstand lower price pressure and the devaluation of the hryvnia better than imported fruit. The Ukrainian government is considering imposing a 10% import tax on all the products to protect the domestic industries.