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East-to-West Re-Routing: How EU Tariffs Are Pushing Ukraine’s Berry & Produce Sector into New High-Margin Markets

by Roman Cheplyk
Friday, June 13, 2025
2 MIN
East-to-West Re-Routing: How EU Tariffs Are Pushing Ukraine’s Berry & Produce Sector into New High-Margin Markets

As Brussels reinstates quotas, growers and processors pivot toward MENA, North America and Asia—opening fresh entry points for foreign investors

Berry Trade: From Polish Gatekeeper to Global Portfolio

  • Historic flow. Since the 1990s Ukraine has ranked among the world’s top exporters of wild-harvest blueberries, raspberries and strawberries—initially via Poland, later directly into Western Europe.

  • New tariff wall. The EU’s 5 June revision of “autonomous trade measures” reinstates duties and TRQs on several agri-foods, including frozen berries.

  • Immediate pivot. According to Taras Bashtannyk, President of the Ukrainian Fruit & Vegetable Association (UPOA), Polish obstacles in 2022 already nudged exporters toward Germany, Spain and the Baltic states. The new duties will accelerate a second redirection to the Gulf, East Asia and North America, where Ukrainian IQF berries are cost-competitive and tariff-free.

  • Risk node. Bulk pickers and small forest-berry cooperatives—dependent on EU brokers—face the sharpest squeeze and will need working-capital support or co-op consolidation.

Tomato Paste: A Post-War Greenfield Play

  • Current gap. Four of Ukraine’s large paste plants—clustered in Kherson and Mykolaiv—were lost or damaged under occupation, turning the country into a net importer.

  • Rebuild thesis. Bashtannyk forecasts robust ROI for new, south-based 250 kt/yr facilities once security stabilises. CapEx tickets of €25–30 m per plant, IRR 18-20 % with blended EBRD/IFC financing and off-take contracts into MENA confectionery firms.

Apple Concentrate: Western Backing, Trans-Atlantic Growth

  • Market share. Ukraine delivers c. 8 % of global apple-juice concentrate; three of its four flagship plants are Austrian- or German-owned.

  • Demand pull. US beverage blenders have doubled Ukrainian purchases since 2022, offsetting the EU quota reset.

  • Smallholder pinch. Household orchards and marginal farms—critical raw-fruit suppliers—need aggregation tools (digital marketplaces, crop-insurance pools) to maintain throughput under new price pressure.

Investor Takeaways

Segment Pain Point Investment Angle
Frozen berries EU tariff re-routing Logistics hubs in Lviv, air-freight cold chain to Gulf (capex €8 m, payback <3 yrs)
Tomato paste Destroyed capacity Greenfield processing in Odesa/Mykolaiv with solar steam integration
Apple concentrate Raw supply volatility Orchard-modernisation funds, drone-based crop management, micro-credit for growers

Foreign direct investors able to pair war-risk insurance (DFC, MIGA) with concessional debt can capture discounted asset valuations while aligning with Ukraine’s export rebalance. The window opens now—well before EU quota talks resume in 2026.

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