Peach prices in Uzbekistan will have to drop dramatically to compete with Turkey on Russia's market

The peach export season from Uzbekistan's Fergana Valley has commenced with unusually high prices, doubling compared to previous years, leading to concerns about market sustainability. Despite these high prices, Uzbek peaches remain competitive due to their quality and importance as the country's second most significant fruit export after grapes. In 2020, Uzbekistan exported nearly 86,000 tons of peaches, generating around $65 million. The majority of these exports were sent to Russia, with other destinations including Kyrgyzstan, Kazakhstan, Turkmenistan, the UAE, Tajikistan, Afghanistan, Belarus, and Mongolia.

The current high prices might be a result of increased demand and reduced supply, with farmers in Uzbekistan shifting from apricot to peach cultivation. However, the high prices could also be influenced by the significant increase in peach imports from Turkey, which has become the largest supplier to the Russian market. This influx of cheaper peaches could potentially lower the demand for Uzbek peaches if their prices do not adjust.

The article also highlights the regional differences in peach prices, with Uzbekistan having the highest wholesale prices, which could be attributed to its high export costs and the need to maintain quality. The prices in other countries, such as Tajikistan, Moldova, and Poland, are lower due to lower production costs and imports from countries like Greece and Turkey.

Uzbekistan's peach export dynamics might influence its market position, especially considering the competition from other exporting countries like China, Iran, and Italy. The article suggests that Uzbekistan's peach export volumes and market share could increase, given its strategic location, ongoing agricultural modernization, and efforts to improve export infrastructure. However, maintaining high prices and competing with larger exporters could present challenges.