Over the past week, the wholesale prices for shelled walnuts fell by 36% on average to $4.97/kg. Analysts explain the collapse of the market by reducing demand for them abroad, EastFruit reports.
The average price at which large wholesale shipments of nut kernels could be exported was $ 5.68/kg.
Ukrainian walnut was demanded in Europe due to its relatively good quality at a low price, but the large product supply this year on the EU markets reduced the demand for Ukrainian nuts.
According to European traders, the supply significantly exceeded the demand. The only thing that can help Ukrainians attract export partners is the price reduction.
Even though Ukraine is considered one of the leaders of the European nut market, many countries are ready to compete with it in all respects, including its closest neighbors.
So, Moldova, although it significantly reduced production and in 2018 got worse crop quality than usual, wins due to the fact that it sells its nuts at 28% cheaper than Ukraine.
The analysts even predict that part of the orchards will not be harvested there, but it is the Moldovan prices that today are the example for the European importers, experts say.
Moldova exports walnuts to France, Germany, Austria, the Netherlands, Italy, and Turkey. For comparison: the geography of the largest exporters of Ukraine is Belarus, Iraq, Azerbaijan, France, Greece, and Lebanon.
But Uzbekistan sells the walnuts even cheaper than Moldova, on average less than $4/kg. And this Central Asian country is strongly developing production and export.
As we wrote earlier, from 2019, walnut gardening farms will begin to unite to create large export lots.