Oversupply and Low Demand Impact Uzbekistan and Neighboring Markets
The watermelon market in Uzbekistan and other Central Asian countries is currently facing significant challenges, according to analysts at EastFruit. Producers are struggling with a lack of demand, leading many to leave their watermelons unharvested in the fields or to feed them to livestock. The wholesale prices for newly ripened watermelons in Uzbekistan have hit a record low of just 8 cents per kilogram, making sales at these prices unprofitable.
One of the main reasons for the drop in prices and lack of demand is the unprofitability of exporting watermelons to the primary market in Russia. Prices in Russia have also plummeted, making it difficult for Uzbekistan to compete. Similarly, exporting to Eastern European and EU countries is challenging due to low prices in those regions as well.
Bakhtiyor Abduvohidov, an international vegetable and fruit business expert, notes that the situation in Tajikistan is similar, with small watermelons being given away for free and larger ones being sold at reduced prices. However, some market participants are hopeful for a potential slight recovery in the price of high-quality watermelons in Eastern European countries due to unusual hot weather leading to crop loss or decline in quality.
Despite this potential for price recovery, there is also concern that mass harvesting in the coming weeks could further lower price levels in the Ukrainian market. The watermelon industry in Central Asia is currently facing a challenging period, and producers are looking for solutions to overcome these obstacles and find profitability in their businesses.
