Production of an expensive product in a poor country needs to be carefully thought out and focused mainly on exports, writes EastFruit, citing the words of Andriy Yarmak, the economist at the investment center of the Food and Agriculture Organization of the United Nations (FAO).
“If you offer an expensive product to poor consumers, then write at the very beginning of your business plan the “Bankrupt,” word in capital letters,” he says.
It could not be more applicable to the production of fruit, said Yarmak. They do not belong to the category of essential products, so the buyers decide whether to buy them or not, depending on the level of their income.
There are many people in Ukraine with such a low standard of living that the question of buying fruit is not worth it at all for them. A rather large stratum of the population would buy an apple, but would not buy blueberries, an expert compares.
The minimum retail price for apples is 6 UAH/kg, and for blueberries, in a season it is 150 UAH/kg.
“It is clear that the buyers of apples and blueberries are completely different categories of consumers,” Yarmak concludes. “But if you plan to produce blueberries in Ukraine, then from the very beginning you must understand who will be its consumer. In any case, remember that the world is not limited to Ukraine. ”
As we wrote earlier, the Moldovans earn 2-3 times more on blueberries than Ukrainian farmers.