The deficit of frozen raspberries in Europe is still increasing. Buyers from France, Germany, Poland, and other EU countries are actively seeking suppliers outside the region.
Due to unusually low stocks of high-quality raspberries in Ukraine and Poland’s ongoing blockage of Ukrainian agricultural product transportation through its territory, buyers are primarily looking to suppliers in Serbia and Morocco. Importers are also exploring options in Chile, Mexico, and even China for frozen raspberry purchases.
Since our EU frozen raspberry market review on February 6, 2024, prices for these berries have risen by another 20-30 euro cents per kg, and many anticipate further increases in the near future, as there is still considerable time before the new harvest.
“Since raspberry prices were at an extremely low level for more than a year, and its supply was huge, food manufacturers began to reintroduce this berry into their recipes. More juices, yogurts, baked goods, confectionery, and other food products with raspberries have reappeared on the shelves. As a rule, food manufacturers make such decisions at the end of the financial year, which is why we saw a sharp increase in demand for raspberries in January 2024. Accordingly, in the upcoming season, Ukrainian raspberry producers will most likely be able to count on significantly higher prices for their berries,” says Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).
Andriy Yarmak notes that a potential restriction on raspberry imports from Ukraine to Poland could benefit Ukraine, contrary to popular belief. “Poland retained a significant share of the added value from the sale of Ukrainian frozen raspberries. Ukraine was essentially a raw material supplier for large Polish companies that processed and re-exported Ukrainian raspberries to the EU, USA, Canada, and Asian countries at much higher prices. This cooperation was mutually beneficial until Ukraine had large volumes of its own raspberries available for export. Now, with Ukraine having around 50 thousand tons of frozen raspberries for export, local producers have the opportunity to move up the value-added chain by investing in processing, packaging, and marketing. This will allow them to increase the selling price of frozen produce, and the additional earnings can be used to expand raspberry production and further improve marketing. Essentially, Poland is now encouraging Ukrainian producers and processors to take this step,” says Andriy Yarmak.
It’s worth noting that raspberry prices follow a predictable cyclical pattern. We extensively discussed this phenomenon in an article dated March 17, 2023, and as you can see, our forecasts were entirely accurate.
According to EastFruit analysts, investments in raspberry processing and marketing in Ukraine in 2023/24 have surged and reached record highs in recent years, despite Russia’s ongoing military aggression. Coupled with the market’s rising prices and the potential removal of intermediaries like Poland in raspberry exports, these trends are highly favorable for Ukrainian farmers cultivating this berry.
