Russia and Ukraine - main importers of Azerbaijani pomegranate: What should market expect?

The continuation of the war between Russia and Ukraine will have a negative impact on the export of Azerbaijani pomegranate, Chairman of the Board of the Azerbaijan Pomegranate Producers and Exporters Association Farhad Garashov told Report.

He noted that Russia and Ukraine are the main markets for pomegranate exports:

“Currently we are in the process of growing pomegranate. The export of pomegranate continues from the end of September, including December. Therefore, today the war does not have any effect on us. But if the processes go like this, if the imposition of economic sanctions against Russia continues, the purchasing power of the Russian market will decrease, which will reduce our export potential. Today, about 80% of the pomegranate exported from Azerbaijan is supplied to the Russian market, and 20% goes to Ukraine.”

He added that a slight increase in pomegranate production costs is expected this year, given the high prices for imported medicinal fertilizers: “The fall in the value of the Russian ruble will lead to an increase in pomegranate prices in the markets. We already grow pomegranates at a high price due to costs. As for the Ukrainian market, if the situation continues, we will lose this market.”

The head of the association noted that at present, pomegranate products are sold in Russian retail chains at the old prices: “But domestic producers are thinking about raising prices. Because the depreciation of the ruble due to the current situation is not so beneficial for our entrepreneurs. For this reason price growth is inevitable,” Garashov added.

Last year Azerbaijan exported 21,716 tons of pomegranate for a total of $29.253 million. Of these, 15,042 tons ($26.638 million) fall on the Russian market, 4,975 tons - on the Ukrainian market ($1.951 million), 438.93 tons ($169,130) - on the Belarusian market, 156.85 tons ($70,930) - to Kazakhstan, 41 tons ($27,250) - to the share of Turkmenistan and 29.85 tons ($13,840) - to the share of Moldova.