Increased Import of Raspberries Causes Drastic Price Drop in Poland: Polish Farmers Demand Raspberry Import Ban from Ukraine

Poland’s raspberry market has witnessed a significant price decrease in the wholesale prices of fresh raspberries per kilogram over the past month, as indicated by the following data: on June 19, 2023, the price stood at 8.90 USD/kg, but it declined sharply to 6.57 USD/kg on June 26, 6.39 USD/kg on July 3, and further plummeted to 5.57 USD/kg on July 10. This drastic decline in raspberry prices has raised concerns among local fruit growers and the agricultural community at large. The root cause of this price downturn can be attributed to the increased import of raspberries from Ukraine, where the offered prices are significantly lower, often ranging from three to four times cheaper than those in Poland. As a result, Polish farmers are now urging for a ban on raspberry imports to protect their livelihoods and maintain a stable market for domestic produce.

Figure 1 below shows that the wholesale price of fresh raspberries in Poland has experienced a significant drop from Jun-23 to Jul-23. The price dropped to 5.57 USD/kg on July 10, 2023, which is a significant decrease.

Figure 1: Fresh Raspberry Wholesale Price in Poland for Jun-23 July-23

Source: Tridge

The association of Polish Fruit-Growers has appealed to Prime Minister Mateusz Morawiecki, requesting the suspension of Ukrainian fruit imports that they claim are causing a significant drop in demand for local products and leading to reduced prices.

According to the fruit growers, more than 40,000 metric tons (mt) of frozen raspberries were imported from Ukraine to Poland, accounting for half of the country's yearly production. Due to the decreasing prices, many growers have reportedly given up harvesting their crops.

The Fruit-Growers Association of Poland has emphasized that the situation in the raspberry export market is dire. They stated that the buying price is continuously plummeting, leading to several processing plants announcing purchase suspensions.

The significant price decrease in Poland's raspberry market has several potential implications, impacting various stakeholders within the industry and the overall economy. Here are some of the key implications:

Price Volatility

The sharp fluctuations in raspberry prices may introduce price volatility in the market, making it challenging for both producers and consumers to plan and manage their finances effectively.

Financial Strain on Local Farmers

The sharp decline in raspberry prices puts significant financial strain on local fruit growers in Poland. With lower revenues from their produce, farmers may struggle to cover their production costs, impacting their profitability and long-term sustainability.

Market Instability

The price decrease may lead to market instability as farmers face uncertainty about their incomes and future prospects. This instability could potentially deter investments in the raspberry sector and discourage farmers from expanding or diversifying their crops.

According to industry experts, it has been reported that on June 29, 2023, farmers in Poland took a notable step by blocking the first raspberry freezing enterprise. Their action was in direct response to their expressed dissatisfaction with the prices being offered by processors for raspberries. Specifically, the farmers in Poland were dissatisfied with the purchase price of PLN 5/kg, which is equivalent to USD 1.22/kg. The situation has garnered attention, highlighting a significant price discrepancy between the Polish and Ukrainian markets. Ukrainian farmers reportedly face substantially lower raspberry procurement prices for freezing, ranging from USD 0.5 to USD 0.8/kg. This pricing discrepancy has left Ukrainian farmers similarly discontented with their earnings in the raspberry market, as they can only dream of achieving the higher price levels observed in Poland during the same period.

Shift in Market Dynamics

The influx of cheaper raspberries from Ukraine has shifted the market dynamics in Poland. Local producers may struggle to compete with the lower-priced imports, leading to decreased demand for domestic raspberries.

In conclusion, Poland's raspberry market has undergone a significant price decrease in the wholesale prices of fresh raspberries per kilogram between Jun-23 and Jul-23. The drastic decline, as illustrated in Figure 1, has raised concerns among local fruit growers in Poland. The root cause of this price downturn is attributed to the increased import of raspberries from Ukraine, where prices are considerably lower, leading to intensified competition and reduced demand for domestic produce. To address these issues, the Fruit-Growers Association of Poland has appealed to the government, urging for the suspension of Ukrainian fruit imports to protect local farmers' livelihoods and maintain a stable raspberry market in Poland. The significant price decrease in Poland's raspberry market has wide-ranging implications affecting various stakeholders.