Background Tm Supermarkets

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Target Market Conf irmation Study

Conducted by CAMIB for USAID/CNFA‟s
Agribusiness Development Project

February 2007

KEY OBSERVATIONS AND RECOMMENDATIONS ................................................ 1
BACKGROUND .......................................................................................................... 2
PRODUCTION TRENDS ............................................................................................ 3
GLOBAL DRIED FRUIT IMPORTS ............................................................................ 5
DRIED FRUIT PRODUCTION IN UKRAINE ............................................................... 6
UKRAINIAN IMPORT TRENDS.................................................................................. 6
MARKET ACCESS AND TARIFFS ............................................................................ 9
INFORMATION ON COMPANIES INTERVIEWED .................................................. 11
Supermarkets Interviewed ................................................................................................ 11
Wholesalers/importers Interviewed .................................................................................. 12
Sources of supply .............................................................................................................. 12
Seasonality......................................................................................................................... 12
Major Clients And Markets ................................................................................................ 13
Channels of distribution .................................................................................................... 13
Produce Requirements and Preferences ......................................................................... 14
Packaging........................................................................................................................... 14
Labeling .............................................................................................................................. 15
Logo/Brand ........................................................................................................................ 15
Varieties and Trends.......................................................................................................... 16
Prices .................................................................................................................................. 16
Major Competitors ............................................................................................................. 17
Moldovan Dried Fruits Perceptions And Recommendations.......................................... 18

The market for dried fruits in Ukraine has developed dynamically in recent years, and continues
to grow. This development is the result of an increase in consumer demand for varieties and
types of dried fruits which were unavailable on the market until recently, including many dried
tropical fruits. In 2005 the market, including tropical fruits, was estimated at 25,000MT, with a
total value of USD13.3mln1.
Official Ukrainian data suggests that the largest volume of dried fruits in Ukraine are sold in retail
markets and to the processing industry (confectionery factories, bakeries, dairies etc.), however
there is a trend towards gradual redistribution of the market share in favor of retail chains
(supermarkets, Cash & Carry, etc.)
In the near future an increase in the numbers of dried fruit suppliers is expected as well as an
expansion of the range of products offered. The anticipated expansion is due to :
              The creation or adoption of new products
              The emergence of a large number of retail packed „ready to use‟ products
              New dried fruits, berries and nuts mixtures
              The development of new brands and trade marks (TM).
In the past only a small selection of dry fruits were available, mainly sold in bulk. The range of
products now available is much wider, with different types of pre-packed, branded products
available on the market. It is generally believed that those trademarks whose owners develop a
wide range of branded products will gain the largest shares of the dried fruit market.
Local production of dried fruits in the Ukraine is estimated at around 5% of total market size2, with
the remaining 95% of market share being filled by imported dried fruits of all types, but with exotic
fruits having the major share.
Locally produced products are not very competitive on the market because of a shortage of raw
materials and very high production costs for drying fruits (increased gas prices have lead to
higher production and storage costs). Imported dried fruits have advantages in the market
because of low prices, and consistency in quality, quantity, and delivery.
Most of the participants interviewed do not have extensive experience of working with dried fruits
exporters from the Republic of Moldova. Some respondents expressed their interest in importing
dried fruits (plums) from Moldova, provided that suppliers meet the following requirements:
              delivery of specified quantity of product;
              consistency in supply;
              attractive price and consistent quality.
Another recommendation from a survey respondent was that exporters providing retails packs of
dried fruit might consider focusing attention to a niche in the "children's" brands, which could
become a very promising segment of the market.

                                                                                          Page 1

The Ukrainian market for dried fruit has changed considerably in recent years. Several years ago
they could be purchased on the open market or in vegetable stores. The assortment was limited
to dried fruit which formed the classical "kompot" mixture: prunes, apple, raisins and
possibly/occasionally dates, pears, figs, cherries or dried peaches.
Nowadays, all types of traditional dried fruits such as dried apricots, raisin, apples and prunes as
well as a large assortment of exotic fruits, including pineapple, cantaloupes, papaya and others
are available on the Ukrainian market. These are all available in a wide range of types, varieties,
size, color and shape etc. For instance, apples are dark brown, light brown, golden or light - in
accordance with the variety of apples or drying treatment. Prunes frequently are distinguished by
the shape: round or flat. The dimensions of dried apricots in different mixtures can differ and
depend on the initial size of apricots. Dried cherries or sour cherries are offered pitted or with
The supply structure of the market has clearly changed in recent years due to the increase in
availability of exotic dried fruit, and the appearance of diverse fruit mixtures - fruit and berry or
fruit and nut mixtures etc.
In 2005 the market, including tropical fruits, was estimated at 25,000MT, with a total value of
USD13.3mln3. Raisins remain the market leader and hold 17% of the entire volume of supply.
Dried apricots hold the second place (15%) followed by prunes (11%). It is interesting to note that
fruit and nut mixtures have a 6% share of the market, after classical "kompot" mixtures (4%). It is
considered probable that the percentage of mixtures (fruits and nuts) will increase.

                   Figure 1: Dried fruit market share in Ukraine 2005, %

                                          Compote     Dried fruit       11%
                                           mixes        mixes
                                            4%           6%

                   Source: LigaBiznesInform

Generally the Ukrainian market demand for dried fruit is stable throughout the year, without
significant seasonal or monthly reductions in sales volumes. (unfortunately figures for dried fruit
demand are not available)
Dried fruits as snacks are unusual for the Ukrainian consumer and the development of this sector
of the market is contingent on the advertising and promotional policy of different brands. In the
future, the most successful trade marks, will be those whose owners know how to convert them
into valuable brands, whilst developing the commodity category as a whole. Today, the leading

                                                                                         Page 2
trade marks on the Ukrainian market for dried fruits are: "AMRA", "SantaVita", "Aromix", "Good
Food", "Jasmine".4


Global Production and Export of Dried Fruits
This report examines the Romanian market for the principle dried fruits that can be produced in
Moldova: Prunes, Apples, Apricots and to a lesser extent Cherries.
Accurate, uniformly compiled statistical information on the production of dried fruit by country is
largely unavailable. However, it is widely recognized that levels of production and export of dried
fruits are associated with levels of global fresh fruit production.
In 2005, the top five producers of fresh apples were Table 1: 2005 Production of Fresh Apples and
China (20.5mln MT), USA (4.8 mln MT), Turkey (2.5 mln Exports of Dried Apples by country leaders
                                                      Country        Production Exports % Share of
MT), France (2.2 mln MT) and Italy (2.2 mln MT).                     Fresh      Dried Global
                                                                           Apples  Apples value    of
The majority of processing apples are used in the juice                    „000 MT „000 MT Dried fruit
industry. For example, in 2004 in the USA 19% (circa                                       exports
                                                             World         59,444    20.75
920,000MT) of fresh apples were used for juice and cider     China         20,406    1.12   3
production, and only an estimated 2% of the fresh crop,      United States 4,477     3.92   20
around 97‟000MT, was used in the drying industry5.           Turkey        2,550     1.38   3
                                                             France        2,222     0.21   1
In 2005 the top five exporter countries of dried apples      Italy         2,192     2.12   15
                                                             Russian Fed.  2,050     -
were amongst the top 10 fresh apple producing
                                                             Poland        2,050     0.36   2
countries.    Dried apple exporters included:     Chile      Germany       1,600     0.91   6
(5560MT), USA (3920MT), Italy (2120MT), Argentina            Chile         1,350     5.56   32
                                                             Argentina     1,262     1.17   5
(1170MT) and Germany (910MT). China the largest
                                                             Romania       478       -      -
producer of fresh apples exported relatively small           Rep. Moldova 350        0.15
volumes of dried apples – 1120MT in 2005, 6% more            Sources: FAOSTATS/ITC COMTRADE
than in 2004.
                                                             Table 2: 2005 Production of Fresh Plums
Dried Prunes                                                 and Exports of Dried Prunes by country
China is the leading producer country for fresh plums,
                                                            Country      Production Exports % Share
producing 49% (4.6mln MT) of global production.                          Fresh      Dried    of Global
Germany and Romania, are the next major fresh plum                       Plums      Prune value of
                                                                         „000 MT    „000 MT Dried
producers, followed by the USA and Chile. See Table 2                                        fruit
Note: Very poor US harvests were experienced in 2004         World        9,458       154.7    100
and 2005, but the 2006 harvest was predicted to be           China        4,635       0.6      <1
good (National Agricultural Statistics Service, USA).        Germany      568         1.6      2
                                                             Romania      409         -        -
The United States, France and Chile are the world‟s key      USA          300         45.8     31
                                                             Chile        255         29.4     19
dried plum producers6, and also the world‟s largest
                                                             Spain        218         0.5      <1
exporters of dried plums. Typically, USA and France          Turkey       215         1.2      1
export 40% of prune production and Chile exports 90% of      France       215         29.7     23
                                                             Italy        185         0.3      <1
production, 45,800MT and 29,400MT respectively in
                                                             Russian      185         -        -
2005.                                                        Fed
The largest markets for USA produced prunes are Japan,       Ukraine      180         0.05     <1
                                                             Iran         147         1.2      <1
the UK and Germany; for France major markets are
                                                             Argentina    127         23.0     14
                                                             Poland       100         0.9      1
4               Rep.         35          2.3      1
5                                                            Moldova
 Source: US Agricultural Marketing Resource Centre
                                                             Sources: FAOSTATS/ITC COMTRADE
6 Source FAS USDA Global Trade Atlas
                                                                                        Page 3
Algeria, the UK, and Germany.           Chile‟s major client country is Mexico, but the EU is also

Table 3: 2005 Production of Fresh Apricots          Turkey and Iran are the leading fresh apricot
and Exports of Dried Apricots by country
leaders                                             producer countries exporting     370,000MT and
Country       Production   Exports    % Share       285,000MT respectively in 2005.
              Fresh        Dried      of Global
              Apricots     Apricots   value   of    However, globally Turkey is the major exporter of
              „000 MT      „000 MT    Dried fruit   dried apricots, 80,700MT in 2005, (accounting for
World        2,821     107.0  100                   72% of world exports by value), followed by
Turkey       370       80.7   72                    Tajikistan (11.400MT), and France with 3,400MT.
Iran         285       0.4    <1
                                                    See Table 3.
Italy        233       0.4    <1
Pakistan     215       0.2    <1                    The USA accounts for around 2% (74,000MT) of
France       181       3.4    8                     global fresh apricot production, of which nearly
Spain        133       0.01   <1
                                                    75% is used in processing, mainly in canning, with
Syria        101       0.1    <1
China        90        0.8    <1                    1,200MT of dried product exported.
Greece       84        0.4    1                     Romanian production of fresh apricots has
Russian Fed. 82        0.03   <1
                                                    declined rapidly, from 42,000MT in 2003 to
South Africa 82        0.9    2
USA          74        1.2    2                     6,000MT in 2005, with no recorded exports of dried
Tajikistan   30        11.4   3                     apricots
Germany      7         1.7    3
Romania      6         0      0
Rep Moldova 6          0.02   <1

                                                                 Table 4: 2005 Production of Fresh Cherries
Cherries                                                         and % share of Global Exports of Fresh
Globally, Turkey is also the major producer of fresh             Country           Production % Share of
                                                                                   Fresh        Global
cherries, followed by Iran, the USA and Germany. See                               Cherry       value    of
Table 4.                                                                           „000 MT      Dried fruit
                                                                 World             1,828        100
Of the 260,000MT of fresh cherries produced in Turkey            Turkey            260          14
in 2005 (sweet and sour cherries combined),                      Iran              224          12
approximately 15% of the total, (39,000MT), equal to             USA               205          11
                                                                 Germany           120          7
85% of the sour cherry production, were used in the              Russian Fed.      110          6
processing industry, dried fruit, canned, jams, juices etc.      Italy             101          6
(Source USDA Gains Report).                                      Spain             89           5
                                                                 Ukraine           88           5
Production of fresh cherries in China is relatively low,         France            69           4
                                                                 Greece            46           3
1% of global production in 2005, (17,000MT), but with
                                                                 Syria             40           2
steady growth in production from 12,000MT in 2001.               Poland            39           2
                                                                 Lebanon           34           2
                                                                 Chile             33           2
                                                                 Romania           32           2
                                                                 China             17           1
                                                                 Rep. Moldova      8            0
                                                                 Source: FAOSTATS

                                                                                              Page 4

Dried Prune import trends 2001 – 2005
                                                     Table 5: Global Imports of Dried Prunes 2005 (MT)
Global import volumes of dried prunes grew                               Value    US$ Quantity Unit value
slowly, by only 1% over the period 2001 to           PRUNES
                                                                         thousand     MT       (US$/MT)
2005, to 146,290MT in 2005 - with a 9%                World estimation     340,297     146,290 2,326
increase in value - to USD340million. See             Russian
Table 5.                                              Federation        8,924       16,751 533
                                                      Germany           36,853      12,700 2,902
The Russian Federation imported the largest           Japan             37,433      10,904 3,433
volumes, (16,751MT in 2005) but at the lowest         Mexico            20,856      8,685  2,401
value - USD533 per ton. Russian imports in            Brazil            18,311      8,568  2,137
2005 were primarily from Tajikistan (3,545MT),        USA               19,852      8,183  2,426
Chile (4,021MT) and Argentina (2,237MT).              United Kingdom    23,275      7,374  3,156
                                                      Italy             20,012      6,529  3,065
German import volumes fell 2% to (12,700MT)           Spain             12,435      5,673  2,192
in 2005, but values increased by 5% to                Belgium           14,704      5,581  2,635
USD36.9million – equivalent to USD2,902 per           Netherlands       13,071      4,877  2,680
MT. Major suppliers to Germany are the USA            Poland            9,567       4,538  2,108
                                                      Canada            12,688      4,410  2,877
(5,089MT in 2005) and Chile (4,703MT) in
                                                      Source: ITC calculations based on COMTRADE
In 2005, Japan had the highest unit value at USD3,433 per MT. Japanese imports in 2005 were
mainly from USA, 9,058MT (compared to 17,512MT in 2004) and Chile (598MT).
The 2004 and 2005 USA reduction in home grown volumes led to a 100% growth in foreign
imports by volume and 123% increase by value between 2001 and 2005, to 8,183MT and
USD19.9million respectively (2005). US Imports (2005) were mainly from France (4,150MT),
Chile (1,567) and Argentina (1,346).

Dried Apple import trends 2001 – 2005                 Table 6: Global imports of Dried Apples 2005
Global imports between 2001 and 2005                  APPLES
                                                                         Value         Quantity
                                                                         US$‟000       MT
increased 7% by volume to 25,792MT, and 13%                                                      (US$/MT)
in value to USD74.3million. See Table 6.              World estimation   74,372        25,792    2,884
                                                      Germany            16,698        6,135     2,722
Germany is the largest importing country;             USA                13,077        4,451     2,938
volumes increased by 3% between 2001 – 2005           United Kingdom     9,491         2,820     3,366
                                                      Canada             6,163         1,694     3,638
to 6,135MT, and by 12% in value to                    Australia          2,501         1,102     2,270
USD16.7million. Major suppliers in 2004               Russian
included China (2,255MT), Turkey (1,328MT),           Federation         558           1,054     529
                                                      France             3,484         700       4,977
Italy 684MT, and Chile 959MT                          Mexico             2,462         648       3,799
                                                      Poland             1,141         590       1,934
Highest unit values were for imports into
                                                      Saudi Arabia       537           585       918
Switzerland (USD5,951 per MT), but volumes            Romania            137           524       261
were low (488MT in 2005).                             Switzerland        2,904         488       5,951
                                                      Austria            2,455         433       5,670
Romania has the lowest unit value for imports of Source: ITC calculations based on COMTRADE statistics
dried apples, (USD261per MT in 2005). Major suppliers to Romania are Moldova (500MT in
2004), with 8MT from Hungary and 13MT from China.

                                                                                          Page 5
Dried Apricot import trends 2001 – 2005                       Table 7: Global imports of Dried Apricots 2005
Globally, volumes of dried apricots imported fell             APRICOTS                US$
                                                                                                 Quantity    Unit value
                                                                                                 MT          (US$/MT)
by 1% between 2001 and 2005 to 106,652MT,                                             „000
but values increased by 16% to USD213million.                 World estimation        212,853 106,652 1,996
See Table 7.                                                  Russian Federation      16,552    30,418 544
                                                              USA                     36,403    14,632 2,488
The Russian Federation was the largest importer               United Kingdom          32,020    10,653 3,006
of dried apricots, 30,4182MT in 2005, but values              Germany                 23,237    8,929  2,602
                                                              France                  23,770    8,597  2,765
were low at USD544 per MT. Major suppliers to
                                                              Ukraine                 2,470     4,853  509
Russia were Tajikistan 11,048MT in 2005 and                   Australia               11,086    4,508  2,459
Turkey 17,159MT.                                              Poland                  4,061     2,254  1,802
                                                              Canada                  5,424     2,188  2,479
The US is a major importer (14,621MT in 2005),                New Zealand             6,105     2,107  2,897
followed by the UK (10,653MT), France                         Switzerland             5,568     1,436  3,877
                                                              Italy                   3,445     1,313  2,624
(8,597MT), Germany (8,929MT). Turkey is a
                                                              Source: ITC calculations based on COMTRADE statistics
major supplier to these three countries. In 2005
Turkey exported 14,022MT to the USA, 8,587MT to the UK, 8349MT to France, and 7898MT to
Romanian dried apricots imports in 2004 were worth USD138,000 (volumes not available). Major
suppliers to Romania in 2004 were Turkey value USD107,000, and Netherlands USD24,000.


According to opinion of experts from Agriagency7 (2006), dried fruit production in Ukraine is very
small, estimated as 5% of total dried fruits market size (25,000MT including tropical fruits). The
reasons for the Ukrainian lack of production are the lack of raw materials and high production
Fifteen years ago the situation in Ukraine was quite different and consumers bought dried fruits
during winter months to ensure adequate vitamin intake. Supplies of dried fruits at that time were
assured by the state collection organization, Ukrpotrebsoyuz, which stored 15-16 thousand MT of
dried fruits annually8.
Ukrpotrebsoyuz no longer organizes storage of dried products, although Ukrainians do continue
to independently store dry fruit and berries. However, production of dried fruit requires large
volumes of raw materials. plus investment in storage facilities for both raw and dried product.
The high initial costs of raw materials and storage facilities, often means that the cost of local
finished product are higher than imported products. When increasing gas costs are added,
Ukrainian dried fruits have become less competitive. (


In the last few years volumes of dried fruits imported into the Ukraine have shown an upward
trend. Total volumes of dried fruit imports increased by 201%, from 2,780MT in 2004 to 5,598MT
in 2005, and in value terms by 148%, from USD2,5mln to USD3,8mln. Average import prices for
dried fruits in this period decreased by 22%, from USD0.9/kg to USD0.7/kg.9

  Some experts say the figure was 3-4 times higher.
  It should be noted that according to official data (Gostcomstat), imports of dried fruits in 2005 increased by 15%
compared with 2004, from 22 thousand MT (value of $11,3 mln) in 2004 to 25 thousand MT (value of $13,3 mln)
in 2005.
                                                                                                       Page 6
 According to an Agriagency10 report, the share of imported dried fruits in 2005 accounted for
 around 95% of the total dried fruits market size. Some local companies estimate annual import
 volume growth as 20% (“Prirodnye product”), 30% (“Imperia vitaminov”), and others estimate
 growth at 50% for specific dried products, eg candied fruits. It is anticipated that this growth will
 continue to increase in future years.
 Turkey was the leading supplier of dried fruits in Ukraine in 2005. Dried fruit imports from Turkey
 doubled in 2005 compared with 2004, reaching 4400 MT in quantity terms and increased by 2.6
 times, to USD2,302 thousand in value terms. Unit import prices (ie per kg) for dried fruits from
 Turkey increased slightly from USD0.4/kg up to USD0.5/kg during 2001-2004, and remained at
 USD0.5/kg in 2005.
 Uzbekistan was the second most important supplier of dried fruit to Ukraine in 2005; volumes
 increased by 2.3 times to 598MT and values doubled to USD186 thousand in 2005 compared to
 2004. The unit price for imported dried fruits from Uzbekistan in 2001-2005 show a decreasing
 trend from USD0.9/kg in 2001 to USD0.3/kg in 2005. During the last two years prices for imported
 dried fruits were stable at USD0.3/kg.
 Moldova is the fourth leading exporter of dried fruits to Ukraine. Dried fruit export volumes from
 Moldova are generally very small, but have increased continuously in the last few years. From
 2004 to 2005 volumes increased by 61% to 198.3 MT and values by 50%, reaching USD402
 thousand in 2005. Export values for dried fruit from Moldova during the period 2001-2005
 increased from USD0.6/kg to USD2.0/kg. The export value for dried fruits from Moldova was
 USD2.0/kg in 2005, 43% higher compared to 2004.

 Table 8: Dried fruit imports into Ukraine 2001-2005 (excludes tropical fruits)
              2001                2002                     2003                     2004                   2005
                         Import                   Import                   Import                 Import                 Import
Partner           Val,                   Val,                     Val,                     Val,                   Val,
           Q, t          price,   Q, t            price,   Q, t            price,   Q, t          price,   Q, t          price,
                  '000 $                 '000 $                   '000 $                   '000 $                 '000 $
                         $/kg                     $/kg                     $/kg                   $/kg                   $/kg
World      3331.5 1536.1 0.5      2745.8 1495.8   0.5      2534.9 1764.7   0.7      2780.0 2546.8 0.9      5598.1 3788.2 0.7
Turkey     3194.2 1387.0 0.4      1828.2 765.0    0.4      1632.8 788.0    0.5      1886.7 902.2 0.5       4400.2 2302.2 0.5
Uzbekistan 26.0 22.4 0.9          501.6 254.5     0.5      440.0 180.6     0.4      285.8 95.2    0.3      597.6 186.2 0.3
Moldova    6.8    4.1    0.6      35.9 39.2       1.1      25.1   33.1     1.3      122.9 171.1 1.4        198.3 402.4 2.0
USA        14.7 24.7     1.7      51.2 97.3       1.9      102.9 199.1     1.9      131.2 441.3 3.4        58.9 257.9 4.4
China      15.0 7.9      0.5      5.6    18.1     3.2      18.1   41.3     2.3      27.9 53.1     1.9      56.6 69.8 1.2
Germany 1.1       3.1    2.7      3.4    19.3     5.7      11.3   117.1    10.3     18.6 340.1 18.2        21.2 317.9 15.0
Tajikistan 6.0    2.1    0.4      83.4 28.0       0.3      169.1 47.2      0.3      220.2 65.5    0.3      20.6 64.6 3.1
Poland     3.2    8.1    2.5      23.6 59.5       2.5      10.7   137.8    12.8     17.0 172.8 10.2        18.9 90.4 4.8
Armenia    0.0    0.0             5.8    2.0      0.3      0.0    0.0               3.0    1.1    0.4      16.3 10.5 0.6
              66.3   76.8   1.2   140.2 212.8 1.5          86.1   220.6 2.6         67.1   304.4   4.5     21.4   86.4   4.0

 Source: Comtrade

 Dried Prunes
 The share of dried prunes in total dried fruits import volume in 2005 constituted 10%.
 The volume of dried prunes imported into Ukraine doubled in 2005 compared to 2004, to 567MT
 with a value of USD809,000 in 2005. Import prices per kg for dried prunes in 2005 were on
 average USD1.4/kg.
 Uzbekistan was the leading exporter of dried prunes to Ukraine in 2005. According to
 COMTRADE statistics, in previous years Uzbekistan did not export large volumes to Ukraine, and

                                                                                                                  Page 7
in 2004 none were recorded. In 2005 import volumes of dried prunes from Uzbekistan to Ukraine
were 290.5MT with value of USD85,700 and average import price of USD0.3/kg.
Moldova was the second major exporter of dried prunes to Ukraine. Import volumes continuously
increased during the period 2001-2005. In 2001 volumes were 6.8MT, and in 2004 they were
98MT, increasing by 202% to 198MT in 2005. Average export values for dried prunes from
Moldova to Ukraine during the period 2001-2005 continuously increased from USD0.6 in 2001 to
USD2.0/kg in 2005.
Volumes of dried prunes imported from the USA increased from 5MT in 2001 to 129MT in 2004,
but decreased by 55% to 58.9MT in 2005, with a 42% reduction in value to USD258,000 in 2005
compared with 2004. Average unit prices for USA dried prunes increased from USD2.6/KG in
2001 to USD4.4/kg in 2005.

Table 9: Dried prunes imports in Ukraine 2001-2005
                     2001             2002                  2003               2004             2005
 Source                   Val, Import      Val,      Import             Import      Val, Import      Val, Import
                     Q, t '000 price, Q, t '000      price, Q, t        price, Q, t '000 price,      '000 price,
                                                                 '000 $
                          $    $/kg        $         $/kg               $/kg        $    $/kg Q, t $      $/kg
 Total imports       70.8 44.0 0.6      150.5 274.9 1.8    181.2 312.3 1.7     278.3 770.5 2.8     567.5 809.4 1.4
 Uzbekistan          5.0    2.9   0.6   10.0 14.7    1.5   23.5   9.6    0.4                       290.5 85.7    0.3
 Moldova             6.8    4.1   0.6   35.9 39.2    1.1   25.1   33.1   1.3   97.9   171.1 1.7    198.3 402.4 2.0
 USA                 5.0    12.8 2.6    41.6 91.6    2.2   101.5 198.0 2.0     129.5 439.1 3.4     58.9   257.9 4.4
 Chile                                                     21.8   41.8   1.9   15.0   33.2   2.2   6.0    20.7   3.4
 China                                                                                             6.0    3.0    0.5
 France                                 21.8 52.7    2.4   3.1    10.1   3.3   21.9   79.9   3.6   5.0    24.8   5.0
 Germany                                0.8   1.6    1.9   1.9    3.5    1.8   1.9    3.5    1.9   2.5    13.5   5.5
                     0.5    1.3   2.6   1.1   4.5    4.0   4.4    16.1   3.7   2.2    6.9    3.2   0.4    1.5    3.9
 Turkey              52.0 19.5 0.4
 Poland              1.1    2.4   2.3   7.8   15.4   2.0
 Greece              0.4    1.0   2.5
 Netherlands                            30.0 54.9    1.8
 Areas. nes                             1.5   0.4    0.3
 Serbia        and
                                                                               10.0   36.8   3.7

Dried apples
Import volumes of dried apples represented only 0.26% of all Ukrainian dried fruit imports in
2005, and are generally insignificant and unstable. Import volumes increased continuously from
2.4MT in 2001 to 15MT in 2005. Total values also increased continuously, from USD10,300 in
2001 to USD55,500 in 2005, but average per unit values fluctuated widely from USD4.2/kg in
2001 to USD2.2/kg in 2003, and USD3.7/kg in 2005.
According to COMTRADE statistics, Hungary was the largest supplier of dried apples to Ukraine
in 2005, supplying 9MT with a value of USD32000, and a unit price of USD3.8/kg. No exports
from Hungary were made in previous years.
Hungary is followed by China with total exports of 6MT of dried apples in 2005, 5% more than in
2004. Dried apples unit prices increased by 16% in 2005 in comparison with 2004 to USD3.7/kg.
See Table 10.

                                                                                                     Page 8
Table 10: Dried apples import in Ukraine in 2001-2005
                  2001               2002               2003               2004               2005
                              Import      Val,   Import        Val, Import             Import                     Import
                       Val,                                                     Val,                       Val,
                  Q, t        price, Q, t '000   price, Q, t   '000 price, Q, t        price, Q, t                price,
                       '000 $                                                   '000 $                     '000 $
                              $/kg        $      $/kg          $    $/kg               $/kg                       $/kg
World             2.4 10.3 4.2       3.3 11.2    3.4    9.0    19.8 2.2    10.6 45.9 4.3      14.8         55.5 3.7
Hungary                                                                                       8.5          32.1 3.8
China                               0.9   2.9    3.2   8.0     15.6 1.9    5.8 18.4 3.2       6.1          22.4 3.7
Poland                              1.9   7.3    3.9                       0.5 0.8     1.6    0.2          0.3 1.7
Germany                             0.1   0.6    4.2   0.0     0.1 3.1     0.1 0.2     3.2    0.04         0.5 13.3
                                                       1.0     4.1     4.2    0.3   1.3     4.0     0.03   0.1    6.4
Netherlands       2.1 10.3 5.0                                                0.1   0.1     1.4
Areas, nes        0.4 0.0 0.1       0.4   0.4    1.0
Italy                                                                         3,5   24,9    7,1
USA                                                                           0,3   0,2     0,6

Ukrainian volumes of imported dried fruits              Figure 3: Ukrainian Dried fruit imports
from Moldova registered a continuous                    from            Moldova             MT
increase during the past three years. The                250
most significant increases occurred in 2004              200
and 2005: 198 MT were imported in 2005,                  150
61% higher than in 2004. The value of
imported products doubled to USD403,000,
and from USD1.5/kg to USD2.0/kg in 2005,                     50

compared to 2004.                                            0
                                                                     2001    2002    2003         2004     2005

                                                        Source: State Customs Department, Moldova
Market Access and tariffs

Importers from Ukraine faced a value-added tax (VAT), import tax and other fees while importing
dried fruits. VAT is levied at 20%, based on the customs value on the invoice. Generally, the
importer pays the VAT at the time of customs clearance. Agricultural enterprises are exempted
from VAT. In January 2000, border checkpoints began collecting a new uniform customs duty,
combining seven import fees: customs clearance, sanitary, veterinary and phytosanitary
inspection, radiation, ecological control and other fees. Ukraine employs a two-tiered system of
general (full-rate) tariffs and preferential (partial-rate) tariffs. Import duties largely depend upon
whether a similar item to that being imported is produced in Ukraine. If so, the rate tends to be
However as a result of the Free Trade Agreement between CIS countries, dried fruits produced
and exported in Moldova are free of import duty in Ukraine.
Further information on Ukrainian tariffs can be obtained from the website:
Non-tariff import regulations applied in Ukraine include:
             Import licenses
             Import quotas
             Registration of contracts
             Import restrictions/bans
             Certification

                                                                                                           Page 9
          Narcotic drugs control
          Veterinary, phytosanitary and ecological control
At the present time, import quotas are generally only applied for cane sugar imports. (Source:
Import documents needed for import of dried fruits in Ukraine are as follows:
          Invoice
          Packing list
          Certificate of Quality (Сертификат качества)
          Certificate of Origin (Сертификат происхождения )
          SMGS - СМГС накладная (ж/д)
          Certificate of fumigation (Сертификат о фумигации)
          Phytosanitary Certificate
          Sertif Aflotoxines on the request for additional payment +USD 10/MT (Сертификат
           на афлотоксины)
          Export declaration
          Insurance
Source: - shipment

Marketing standards
Moldovan exporters would be wise to familiarize themselves with international marketing or
quality standards, as these are minimum standards that dried fruit producers in other countries –
Moldova‟s competitors - apply.

1.     There are no EU marketing standards for dried fruits. However, rules governing EU
       minimum standards for prunes (which form part of aid schemes intended for EU growers -
       not marketing standards) can be found in 20 languages at:!celexplus!prod!CELEXnumdoc&numd
       oc=31999R0464&lg=en These standards should be of interest to dried fruit producers.

2.     UN/ECE standards
       The Economic Commission for Europe of the United Nations (UN/ECE) has established
       standards for the marketing and quality control of a range of dried fruit including dried
       apples, apricots, dates, figs, grapes, pears and prunes.

       These standards are in line with the demands of EU countries and can be downloaded in
       English, French or Russian from:

3.     USA standards
       These standards are only offered in the English language, and they do not legally apply to
       European countries. However, they are worth consideration by Moldovan exporters as
       they set out the minimum standards applied by the USA as a major dried fruit
       manufacturer, consumer and exporter to markets of interest to Moldovans.

       USA standard for dried prunes:
       USA standard for dried apricots:

                                                                                      Page 10
       USA standard for dried apples:

Examples of quality (and prices) offered by Chinese exporters to Ukraine, can be
found in Russian, on the Chinese website:


The growth in the retail sector and increasing presence of European retail chains has resulted in
increased retail competition in Ukraine and contributed to the growth in sales of processed food
products. Ukrainian supermarkets maintain a wide product mix, and the largest proportion of
imported goods. Despite the rapid expansion of supermarkets in large urban areas, many food
products continue to be sold through open-air markets and small convenience stores.

Supermarkets Interviewed

1    Megastore “Karavan” The largest mall in Ukraine (total area 42
     thousand square meters).

2    The Austrian supermarket concern Billa first arrived in Kiev in 2000.
     There are currently eight Billa supermarkets in Ukraine and three of
     them are in Kiev.

3    Furshet supermarkets. The Furshet supermarkets range in size from
     1,200 to 5,000 square meters, and specializes in selling exclusive
     delicacies,      produced       in      Ukraine  and       abroad

4    The “Silpo” supermarket network, numbering 40 stores in different
     cities all over the country, is a recognized leader on the market in
     Ukraine, with stores in Kiev, Odessa, Dnepropetrovsk, Zaporozhye,
     Rovno, Nikolaevo, Chernovtsy, Cherkassy and many other cities.

5    METRO CASH&CARRY hypermarkets are located in: Kyiv
     (Teremky), Kharkiv Dnipropetrovsk, Kyiv (Pozniaky), Odessa , Lviv,
     Kyiv      (Petrivka), Donetsk, Luhansk     and      Kryvyi    Rih.

6    “Mega Market” supermarket chain includes 4 supermarkets, of which
     3 are located in Kiev and one in Brovari. There is also an on-line
     “Megamarket”                                          supermarket.
     “Velika Kishennya” (Kviza Trade) The supermarket network “Velika
     Kishennya” includes 29 entities (25 supermarkets and 4
     hipermarkets), based in Kiev and Kiev region, (Obuhov), Harkiv,
     Kherson, Mikolaiv, Dnepropetrovsk, Ivano-Frankovsk, Poltava,
     Ujgorod, AR Krimea (Yalta), Lutsk.

                                                                                      Page 11
Wholesalers/importers Interviewed
1         ARIOL LTD. is the leading operator in the Ukrainian dried fruit market. In 2000 the
          company concluded the contract with the manufacturer for exclusive promotion of
          dried fruits of the TM “AMPA” in Ukraine.

2         “ARO - METRO” is a company importer: the official Metro distributor. It offers a large
          assortment of food products including dried fruits.

3         “Good-food” Group – A Russian producer of dried fruits whose product range
          includes a wide variety of dried fruits and nuts. The company sells both bulk packed
          products (to be packed according to the weight required by the consumer), and pre-
          packed retail packages already weighed (generally 250g, 500g etc), labeled with
          weight and price. The company‟s products are present in a large variety of
          supermarkets and shops.

Sources of supply
Dried fruits are produced in Ukraine in small amounts. According to the companies interviewed,
around 95% of the dried fruits present on the market are imported and only 5% are of local origin.
Dried fruits are imported into Ukraine from CIS neighbouring countries, as well as from California,
USA (25-30%), from Chile (20-25%), Moldova (20-25%), France (10-15%) and Iran.
According to the survey respondents the main supplier of dried apples to Ukraine is the Russian
Federation (about 45-55% of imports). Another big supplier of dried apples is China (40-45% of
imports). Dried apples are also imported from the Republic of Moldova and Poland (5-10), with
some produced domestically (1-2%).
According to the survey, sour cherries are sold in two supermarkets out of six (Furshet and
Karavan). The main suppliers of these fruits are China and Thailand, plus some local production.

The survey respondents indicated that during the regional harvest seasons of June to October,
Ukrainian and regional dried apples, prunes and cherries are scarcely available.          From
November to May local dried fruits are available in large volumes, along with products from
Moldovan and Russia. This is confirmed to some extent by export statistics for Moldova from the
Moldovan State Customs Department, see Figure 4. Imports from other countries are available
all year round but in small quantities.
Figure 4: Export seasonality of dried fruits from Moldova, t

                           2004                                              2005
    140                                                250
    80                                                 150
    60                                                 100
     0                                                  0

Source: State Customs Department, Rep. of Moldova

                                                                                                         Page 12
Major Clients And Markets
Nearly 97% of foodstuffs consumed in Ukraine are produced domestically. Imported food
products are mainly those not produced domestically, including dried fruits and snack foods.
Demand for dried fruit including apricots, prunes and raisins is particularly strong in the expanding
Ukraine food processing sector. (Source: US Gains report, Ukraine, Food Processing Ingredients
Sector 2005)
In 2003, according to official GOU statistics, there were 597 open-air markets selling foodstuffs
(10% less than in 2002`), of which 99 markets are located in Kiev with a total floor space of
599,000 square meters. Sales of dried fruits are strong in open-air markets. In many cases,
these products are smuggled into Ukraine and remain popular among consumers due to
competitive prices; the majority of consumers believe that purchasing food at open-air markets is
cheaper than in supermarkets.
Some central markets, eg Bessarabskiy and Vladimirskiy markets in Kiev, are used by foreign
diplomats and the Ukrainian elite. These markets are of interest to exporters of mixtures of exotic
dried fruits, nuts, and other products.
The number of convenience stores in Ukraine is significant and is presently the second largest
retail business sector after open-air markets. Convenience stores are located all over Ukraine, in
big cities, towns and big villages. Many of them are privatized Soviet convenience stores that
have not changed their trade practices much. Facing stiff competition from supermarkets, many
convenience stores have switched to 24-hour operations and have decreased the number of food
products offered. They are popular in small Ukrainian towns where construction of supermarkets
is not profitable.
Small kiosks that offered a wide variety of food products, tobacco and alcoholic beverages, are
quickly losing popularity.
It is expected that competition among retail chains will increase, taking into consideration that
existing players will continue to expand and new players will enter the market; supermarkets
such as Billa, Mega Market, Furset and others have announced their intentions to increase their
numbers of units in Ukraine in 2007-2008.
Wholesalers supply products to supermarket chains and other clients such as medium and small
food shops, hotels and restaurants all over the country. According to the survey, the majority of
respondents have a network of branch offices throughout the country, but mainly have their
headquarters in Kiev.
The respondents indicated that only wholesalers import dried fruits, but not supermarkets.
Channels of distribution
Usually processors/packers of dried fruit carry out limited processing and conditioning of product,
but are involved mainly in re-packing into smaller packs for the retail, catering and industrial
sectors. The size and branding of these products depends on the marketing strategy of the
processor/packer. Some of them have their own brand, whilst others pack according to their
customers' specifications, e.g. for supermarkets. Larger packers/processors are increasingly
buying directly from processors/exporters in the countries of origin.

                                                                                        Page 13
Scheme 1. Distribution channels for imported dried fruits

                                                        Foreign producers

(Commercial use)
                                            Importers                       Processing companies

     Large processing companies
                                                                                                        (Consumer use)

    Small processing companies        Wholesalers of food products            Wholesalers of confectionery products

                                                             Retail shops
                                              (supermarkets, shops, confectionery outlets)


Produce Requirements and Preferences
According to the interviewed importers the general requirements for dried fruits are the following:
good appearance, absence of impurities and the acceptable humidity level of production.

The most common specifications mentioned by interviewed importers were:

   the minimum size of dried prunes required is about 30-40 mm in diameter. Some importers
    however require the size of dried prunes to be 40-50 mm.

   For dried apples and cherries, customers interviewed required sugar content of 65%, +/-5%.

   In addition, for dried apples, specifications state that they should be between 18-24%
    moisture, with a maximum SO2 level of between 1700-2000ppm.


According to the survey respondents in Ukraine, the highly competitive environment in the
Ukrainian dried fruit market is becoming increasingly difficult.
Some years ago the agent‟s commission (also known as a „margin‟) for selling dried fruits was
about 50%, now it is around 5%. One respondent stated that a trader‟s revenue from selling a
kilo of dried fruit is now around 5-10USDcents.
In order to add value and increase returns, many entrepreneurs have begun to pack dried fruits
into retail packs. By doing this, a businessman can increase earnings by 5-10 times, however, the
cost of a packing line is around €100-120 thousand. The majority of producers prefer to save
financial resources by hand packing imported dried fruits into shallow polystyrene trays.
Another type of low cost package is the polyethylene pack. It can be an economy pack – a simple
polyethylene pack with a sticker carrying the company logo and product information, or a highly
colored polythene pack printed with product information.

                                                                                                    Page 14
Figure 5: . Retail pack samples Package types
 Package type                                       Example

 Polystyrene trays          Plastic packaging (economy packs ) Plastic    packaging
 (economy packs )

 Polyethylene sacs (economy)                        Example of a shelf with packed
                                                    dried  fruits in  a    Ukrainian

All food products sold in Ukraine must have Ukrainian language labels attached to the package
that contain the following information:
1) Name of food product;
2) Nominal quantity of food product (weight or volume in metric measurement);
3) List of all ingredients found in the food product, including other food products and food
additives used;
4) Nutritive values and energy, if applicable;
5) Expiry date or the date of production with indicated shelf life;
6) Storage conditions;
7) Name, country, address of producer, packer, exporter and importer of the product;
8) Terms of use (if any);
9) Presence of genetically modified organisms (GMO);
10) Consumption of food product warnings for certain consumer categories (children, pregnant,
senior people, athletes etc.)

In Ukraine promotion of dried fruits is only just beginning, and the market is still open for new
brands. One of the most popular brands on the market is “Santa-Vita”. The company “ARIOL LTD

                                                                                       Page 15
“has studied the competitive environment and the structure of the customer demand in the market
of dried fruits and nuts. It became evident that there were unoccupied segments in the market,
and segments with low competitive activity and unhappy buyers. Market research confirmed that
there is some space in the market for the entrance of new trademarks.
The company carried out further research on:
     expectations of consumers relative to the product (stability of its quality, attractiveness and
      convenience of package, benefit for the health, optimum correlation “price – quality”)
     the main reasons for consumer choices;
     the attitude of consumers to dried fruits in general;
     the low level of knowledge about the profit of dried fruits.
which suggested an increasing interest in a healthy way of life and healthy nutrition. The research
led to a differentiated promotion policy for the TM “Santa Vita”
According to survey respondents, besides TM “Santa Vita” as a leader, other trademarks include
“AMRA”, TM “Aromix”, TM “Good Food”, TM “Jasmin”. Dried fruits as a product still needs
development. Nevertheless some progress has taken place. Some years ago the main volume of
dried fruits and nuts were sold in nameless packs, now there are tens of trademarks present on
the market.
Figure 6: The most widespread trademarks on dried fruit market of Ukraine

Source: Respondents‟ data

Varieties and Trends
In the last few years the change in market structure/presentation has lead to growth in market
share for exotic fruit, dried fruit and berry mixes, and fruit and nut mixes.
According to this survey, Ukrainian traders classify imported dried fruits by shape and origin (but
not by variety).

Wholesale prices
Indicative wholesale prices for dried fruits sold by one wholesaler can be found in Russian at:
Figures are available for product sold by the kilo, in bulk packs or small pre-packed retail packs,
alongside figures for buyers of large quantities of fruits.

                                                                                        Page 16
These figures are not the prices paid to growers/processors, but do give a good indication of
comparative values for a range of different products.

Retail prices
Retails prices with supermarkets, for any product, are always much higher than prices paid to
suppliers. The retail mark-up (margin) does not represent only profit; it also covers the very
significant cost of building and equipping stores, recruiting staff and supplying their uniforms,
maintaining supermarkets/hypermarkets warm in winter and cool in summer, the cost of
centralized distribution etc.
Retail prices for dried fruit vary depending of many factors, including: product quality, quality of
packaging, brand and support for the brand (TV advertising, promotions etc), package capacity
(smaller packages are relatively more expensive to pack), etc. Some samples of Ukrainian retail
prices 2005) can be seen in Table 11 below.

Table 11: Dried fruit prices in Ukrainian supermarkets, UAH / pack / kg
                                              Pack        Price, Price,                  Supplying
                                              Capacity, g UAH USD                        country
Dried prunes
Dried prunes                                  100        4,8   0.9     Silpo             Ukraine
Dried prunes (Moldova)                        200        8.3   1,7     Furshet           “Aromix”
Dried prunes                                  200        6,8   1,4                       Ukraine
Dried prunes                                  200        8.8 1.8       Silpo             Ukraine
Dried prunes, large sized, sold by kg         1 000      40.0 8.0      Silpo             Ukraine
Dried prunes, medium sized, sold by kg        1 000      36.0 7,2      Silpo             Ukraine
Dried cherries
Dried cherries without stones                 125        8.8   1,8     Furshet           TM
Dried cherries without stones                 1 000      47.8 9,6                        Ukraine
Dried cherries with stones, sold by kg        1 000      52.8 9.6      Silpo             China
Dried apples
Dried apples                                  200        5.0   1,0                       Ukraine
Dried apples, rings, weighted out              1 000     30,0 6,0      Silpo             Russia
Fruit mixes
Dried fruit mix (dried apples, dried apricots,                         Karavan-
                                               350       3.9   0,8                       Ukraine
dried prunes)                                                          Megastore
Dried fruit mix (dried apples, dried pears)   412        7.6   1,5                       Ukraine
Dried fruit mix (apples, pears, prunes,                                Karavan-
                                        500              15,64 3,1                       Russia
apricots, peaches)                                                     Megastore
Source: Respondents’ data

Major Competitors
Ukranian imports of dried fruit have grown due as a result of the shortage of locally produced
dried fruit, and the unavailability of some types of dried fruit production in Ukraine (eg tropical
fruits). The competition on the market is increasing, and the present market players are those,
who can offer good quality products at competitive prices.

                                                                                       Page 17
Taking this into account Moldovan producers will have to work diligently to access the market,
and hold on to and expand their share of the market.
As the survey showed the major competitors on the Ukrainian dried fruit market are as follows: for
dried prunes – USA (California), Chile, Iran. France, Poland, Greece, Austria, Germany; for dried
apples - Russian Federation, China, Hungary, Netherlands, Poland; for dried cherries – mainly
China, Thailand etc.

Moldovan Dried Fruits Perceptions And Recommendations
According to the survey the majority of interviewed supermarkets and wholesalers sell dried
cherries and apples, and practically all shops sell dried prunes.
Dried fruits from Moldova were found in only one supermarket (Karavan). Other supermarket
representatives expressed an interest in buying Moldovan dried fuits only if the interrelation
between price and quality is acceptable, and Moldovan dried fruits suppliers meet contract
requirements for volumes, quality and timeliness of delivery.
It is advisable for Moldovan exporters of dried fruits to Ukraine to have international quality
certification, such as ISO, HACCP etc.
According to the respondents, even when dried fruits are delivered in bulk they should comply to
some standard requirements, such as being attractively packed in strong packages which protect
the products from moisture.
At present the majority of exporters are concentrated on the Kiev market, where the purchasing
power is the highest in Ukraine and the business climate is the most favorable. However Kiev is
not the only trade hub in Ukraine, and it was recommended that Moldovan exporters consider
other regions, and look for distributors with nationwide capabilities, including those in the cities of
Lviv, Odesa, Zaporizhzhya, Donetsk and Kharkiv. These cities are in important industrial regions
of Ukraine and are densely populated.
Survey repondents, including one major supermarket, reported that one of the main problems of
Moldovan dried fruit is the cheap packaging used. As the first thing the consumer or buyer sees
is the package, Moldovan exporters are strongly advised to use good quality, colourful packaging
for their dried fruits.
With regard to short term market strategy, Moldovan dried fruits exporters should take into
account dried fruit consumption growth in such sectors as musli production.
Supplying industrial clients is considered by some to be more profitable than supplying retailers,
because of the cost of branding and buying shelf space for retail sales. However, the industrial
market is already well established/supplied and the competition to enter this market is very tough.
Another recommendation from a survey respondent was that exporters providing retails packs of
dried fruit might consider focusing attention to a niche in the "children's" brands, which could
become a very promising segment of the market.

NOTE: Contact information for buyers in this market may be obtained from Agribusiness Development
Project (ADP): str. Bulgara 33/1, Chisinau, Republica Moldova 2001;
Tel: (373 22) 577-930, Fax: (373 22) 577-931;
Email: Website:

                                                                                          Page 18
Annex 1. List of reference materials

1.    State Customs Department, Moldova
2. - site of a consulting company
3. - site of a consulting company
4. - “Karavan-Megastore” Company site
5. - information about “Billa” supermarket
6. - information about “Furshet” supermarket
7. - information about “Silpo” supermarket
8. - METRO cash & Carry Company Site
9. - information about “Megamarket”
10.     -   information     about    “Megamarket”
11. – importing company site
12.   Eurostat Comtext
13. – international business catalog
14.   Market Study for Moldavian Dried Prunes on the German Market, CNFA, 2005

                                                                                   Page 19

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