SHAFFE Expects Difficult Conditions for Fresh fruit Exports to Russia and Ukraine

The Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE) has reviewed the Russian and the Ukrainian fresh fruit import markets and expects increasingly difficult conditions to maintain supply to both markets.

In 2020, Ukraine imported 795 million USD of fresh fruit with over 48% originating from suppliers like Turkey (citrus), Ecuador, and Costa Rica (bananas and pineapples). Total exports of fresh fruit from SHAFFE member countries (*) reached USD$54 million in 2020, representing 7% of the total fruit imports market in Ukraine. The main suppliers to Ukraine from SHAFFE member countries included South Africa, which exported mainly citrus with a value of USD$16 million and which represented 30% of the total value of exports registered by SHAFFE member countries in 2020.

In 2020, exports of fresh fruit from SHAFFE member countries to Russia reached 643.084 tons, which represented 17% of the total fresh produce import market During the same period, the main species of fruits exported by SHAFFE member countries to Russia included apples, pears, and citrus, which together represented 80% of the total exports of SHAFFE member countries to this market. The exports of fresh produce from SHAFFE member countries have been on an upward trend, registering a 29% volume growth, between the period 2017 to 2020. South Africa and Argentina are the main suppliers of fresh produce to Russia and represent 69% of the total volume exported by SHAFFE member countries in 2020.

According to SHAFFE, foreseeable negative impacts could include reduced exports to the Russian and Ukrainian markets and hence the redirection and oversupply of citrus, apples, and pears to other destinations such as the EU, U.S.A., or others. This could lead to an oversupply of those markets with resultant financial losses for exporters. Additionally, the entity foresees that this situation could compound even further the negative impact of the current rise of production and logistical costs facing the Southern Hemisphere exporters and growers. Sanctions by some Western countries against Russian banks as well as SWIFT payments will lead to add to the risks faced by exporters. It is hoped that the situation will be resolved soon.

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Webinar “Import of Cherries from Chile to Russia 2021. Questions and Answers”

During the webinar, Sharif Christian Carvajal, Marketing Director for Europe, Asia and the Middle East of the Chilean Association of Fruit Exporters (ASOEX), told about the current cherry season in Chile, as well as the plans of the Association to promote the Chilean cherry in Russia. During the webinar, participants will be able to ask questions to the speaker.

Speakers:

  • Sharif Christian Carvajal
    Chilean Association of Fruit Exporters (ASOEX). Marketing Director Europe, Asia and the Middle East
  • Ksenia Gorovaya
    Director of the consulting agency Crisp Consulting

The webinar was organized by the Chilean Association of Fruit Exporters (ASOEX).

Iran Increased Fruit Exports to Russia by 50% in 2021

Iran exported a record volume of fruits and nuts worth $196 million to Russia in the first three quarters of 2021. Fruit exports of Iran to the Russian Federation increased by 1.5 times in value terms in the first nine months of 2021 compared to the same period in 2020.

Andriy Yarmak, Economist at the Investment Centre of the Food and Agriculture Organization of the United Nations, told: “The growth in the supply of fruits and nuts from Iran to Russia is one of the reasons for the difficulties fruit suppliers from Moldova and Uzbekistan began to experience in the Russian market last year. Iran can offer a wide range of fruits and supplies them almost all year round, which distinguishes this country from its competitors.”

“Also, Iranian suppliers are active in promoting their fruits, while exporters from Moldova, for example, rarely resort to advertising their products. In particular, in the largest fruit and vegetable trading group EF Trade Platform in Telegram, Iran is often among the five most active countries, and Moldova is usually not even in the top 10.”

Apples are a key item of Iranian exports to Russia. In the first 9 months of 2021, Iran increased their exports to Russia 2.5 times to 125,000 tons. They are followed by kiwi, of which more than 37,000 mt were exported from Iran to Russia during this period, watermelons (27,400 mt), peaches and nectarines (26,600 mt), raisins (12,200 mt), dates (7,400 mе), cherries (7,300 mt), pistachio (7,100 mt), sour cherries (6,800 mt), table grapes (4,100 mt) and plums (3,400 mt). Experts note that these volumes may be underestimated since some of the fruits are exported from Iran to Russia through third countries.

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Export of Apricots from Uzbekistan Decreased 6.5 Times in May-June 2021

According to the State Statistics Committee of Uzbekistan, in the first half of 2021, the exports volume of apricot amounted to only 8.8 thousand mt worth $ 7.7 million. In the same period last year, the republic exported 6.5 times more – 56.9 thousand mt. Considering that the season for exporting fresh apricots from Uzbekistan to foreign markets lasts three months – from May to July, the above data for the first half of the year can be attributed to two months – May-June. Thus, the exports of Uzbek apricots in May-June 2021 decreased 6.5 times in physical terms compared to the same period last year. However, there is an important note: ​​the exports of apricots from Uzbekistan in 2020 was a record one.

Even without taking into account the record last year, the exports of fresh apricots in May-June 2021 decreased several times compared to the same period in previous years. For example: 5.3 times by 2019, 3.5 times – 2018, 2.2 times – 2017.

The three post-Soviet countries account for 96% of the exports of Uzbek apricot in May-June 2021:

Kazakhstan – 4.0 thousand mt (45% of the total exports volume of fresh apricots);

Russia – 3.1 thousand mt (35%)

Kyrgyzstan – 1.4 thousand mt (16%)

At the same time, 81% of the exports volume of fresh apricots was shipped to foreign markets from three regions of Uzbekistan – Fergana (47%), Tashkent (22%) and Namangan (13%) regions. Accordingly, the total share of the remaining 11 regions of the republic in the exports of fresh apricots was 19%.

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Fruit Imports to Russia in January 2021 were Marked by a Drop in Supplies of Bananas and Apples

Fruit imports in January 2021 remained virtually unchanged compared to the same month in 2020, but changes in the import structure were significant.

First of all, attention is drawn to the decrease in the volume of imports of two key items – bananas and apples. Banana imports to Russia fell by 12% to 115 thousand mt, while apple imports fell by 29% to 38 thousand mt in January.

Regarding the structure of Russian fruit imports in January 2021, the sharp increase in mandarin imports should be noted. The main increase in the supply of these citrus fruits was from Turkey, Pakistan, and Georgia. At the same time, the imports of mandarins from Egypt to the Russian Federation fell.

The import of oranges also increased, although not as sharply as the import of mandarins. Egypt became the main beneficiary here and increased supplies by 42% at once, in the same time the supply of oranges from Morocco to Russia fell by half in January 2021. The import of persimmons continues to grow rapidly – in January 2021, Russia imported 37% more of these fruits than in the same month of last year, and the main increase was provided by imports from Azerbaijan and Iran, which almost ousted Turkey from the Russian market.

In terms of countries, Moldova reduced supplies to Russia the most – by more than 30% in January. Moreover, the decline occurred in all key positions, except for fresh plums. Turkey increased its exports by 19%, Egypt – by 20%, Morocco, Azerbaijan, and Iran – by 5%, and Peru – by 30%. The decline in supplies from Ecuador was equal to the volume of the decline in banana imports.

Uzbekistan fell back to 24th place in the ranking of the main suppliers of fruits to Russia in January, having reduced exports by 11% to $2 million compared to last year. Georgia was among the 15 largest suppliers, having increased fruit exports to Russia in January 2021 2.3 times to $5.5 million – it exported almost three times more fruit to Russia than Uzbekistan.

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Shipping Route Launched to Export Egyptian Crops to Russia

Egyptian shipping company Kadmar Shipping Co. has announced the launch of the Russian Leader Line for transporting Egyptian agricultural crops between Alexandria and Russia. The company said that the line would start shipping citrus, potatoes, grapes, pomegranates and other produce this month.

The shipments will take place via weekly direct sailings between the Alexandria Container and Cargo Handling Co. terminal at Dekheila port and the Novorossiysk container terminal on the Black Sea. The inauguration of the Russian Leader Line comes in the wake of cooperation between Egypt and Russia and a presidential directive to increase Egyptian exports.

Temporary Price Increases for Fruits in Russia Predicted for Winter and Spring 2021

According to preliminary estimates from the Horticulture Union of the Russian Federation, the apple harvest in the commodity sector amounted to 708,000 mt in 2020, which is 30% lower than a year earlier due to late frosts in a number of major producing regions. However, experts have not yet noted an increase in fruit imports in relation to the decline in the harvest.

The company Technology Growth believes that fruit and berry imports in 2020 remained at the level of 2019. Russia imported about 1.7 million mt of traditional fruits – apples, pears, peaches, cherries, and grapes. “This result was achieved due to the high harvest in 2019 and in the first half of 2020 there were very few imports. Before the New Year, our enterprises were selling products harvested last autumn,” explains the general director of the company Tamara Reshetnikova. “However, in 2021, due to a low harvest, the import of fruits will increase since its supply will be limited. Prices for all fruits will increase in winter and spring,” the company experts predict.

However, the growth in import volumes and prices will be temporary believes the Horticulture Union believes. If there are no weather disasters, the fruit harvest in 2021 will exceed the record figure of 2019. “The fact is that 2018 and 2019 became record-breaking years for the establishment of perennial orchards and this year they will begin to bear fruit. Accordingly, in the new year one can expect not only a record collection but also a decrease in prices on the shelf and a decrease in imports,” Mikhail Glushkov, director of the Horticulture Union told Agroinvestor.

The Russian Farmers Association is also optimistic. Its president Igor Mukhanin recalls that in 2019, there were 16,000 hectares of orchards planted despite the original plan of 10,500 hectares and in 2020, another 14,000 hectares were added. “Apple production annually increases by 150,000-200,000 mt and the productivity of orchards is growing. If such rates continue, then in five to six years, our country will completely replace its demand for marketable apples, which is 2 million mt against 1 million mt being produced now,” he said.

Mr. Mukhanin adds that in a few years when Russian farmers saturate the market with apples of their own production, they will be able to export them. “We have high export potential. We grow apples with minimal use of herbicides and pesticides – three times less than in Poland and five times less than in Italy. Due to the fact that Russia has cold winters and a temperate climate, we do not have such an acute problem with pests, there is no need to cultivate orchards all year round,” Igor Mukhanin emphasizes. He is sure that horticulture is the industry that could help in the development of rural areas.

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Georgia Increases Fruit and Vegetable Exports to Russia Prior to New Year’s Eve

The period right before New Year’s is usually characterized by an increase in traffic on transit roads, which causes slowdowns and traffic jams. This is due to exporters trying to get their products on the markets before the New Year. According to exporters, this year, the road situation is no different from previous years and there are no significant disruptions or issues associated with the pandemic except in the search for drivers.

Prior to New Year’s Eve, fruits and vegetables – mainly mandarins, persimmons, apples, and herbs – are exported from Georgia. Russia is one of the main export countries for Georgia. According to information from export companies, by now, their products are already on their way to markets and there are no more new cargoes planned for December. Since sales are active during the period prior to New Year’s, trade is reduced after the New Year.

According to Vakhtang Bezhitashvili, the founder of Fruitilia in Georgia, the traffic on transit roads in the direction of Russia is increasing prior to New Year’s. “I cannot say that there are any special delays on the roads. High traffic and corresponding queues on the roads are common during this time. Our company carries out both the export and import of agricultural products. The resulting queues on the roads are a problem only for perishable goods in refrigerated trucks. A long delay of such a product on the road means a decrease in its quality. For example, if during the normal period a trailer reaches Russia in three days, it may take a week leading up to New Year’s. A solution to this problem is possible if the transportation of perishable goods is given priority on the roads. This implies allowing refrigerated trucks to enter the first rows so that they do not have to stand in line with trucks loaded with non-perishable goods. This is the accepted practice in the world. In Georgia, this practice is used only at customs, which, of course, is not enough. It often takes several days to get to customs.”

According to official data for the period from January to November 2020, the largest amount of mandarins and apples were exported from Georgia to Russia. Russia accounts for 92% of the total export value of apples and 80% for mandarins. In January-November 2020, apples worth $3.03 million and mandarins worth $3.66 million were exported from Georgia to Russia. However, the season is not over yet and, in January, both mandarin and apple exports will continue.

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Russia Allows the Export of Products from Several Azerbaijani Enterprises

The Azerbaijani Food Safety Agency and a number of relevant structures are taking the necessary measures to remove restrictions on the export of certain products to Russia. The export of apples and tomatoes from Azerbaijan to Russia was widely discussed during several meetings.

As a result of discussions between the delegations of the Food Safety Agency and the Federal Service for Veterinary and Phytosanitary Supervision of the Russian Federation., the export of tomatoes from Agroterm LLC (Khizi district), Geothermal Agro LLC (Kurdemir district), Gp Alfa greenhouse LLC (Salyan district), Hajigabul greenhouse LLC (Hajigabul district), and the enterprises belonging to Ilkin Shukurov (Masalli district) was allowed.

The export of apples from “TURAZ” LLC (Shabran district), Ran Fruit LLC, and an enterprise belonging to Vahid Asadov was also allowed. The relevant structure issued the export permits on the basis of the files submitted by the Agency on strengthening phytosanitary control, as well as on the results of relevant monitoring.

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Russia Bans the Supply of Selected Fruits and Vegetables from Uzbekistan, Armenia, Azerbaijan, and Turkey

The list of new bans announced by Rosselkhoznadzor citing quarantine issues with supplies of vegetables and fruits to Russia as they unfolded this week.

– Ban on the supply of greenhouse tomatoes and peppers to Russia from the Fergana region of Uzbekistan due to the detection of the tomato brown rugose fruit virus (ToBRFV);

– Ban on the supply of dried apricots and all plant products to Russia from the Fergana region of Uzbekistan after the discovery of a quarantine object – the khapra beetle (Trogoderma granarium Ev.) – in a batch of dried apricots for Russia and the EAEU member states;

– Ban on the supply of greenhouse tomatoes and peppers from the Kashkadarya region of Uzbekistan due to the discovery of the tomato brown rugose fruit virus (ToBRFV) and for the same reason from the Navoi region of Uzbekistan;

– Ban on the supply of greenhouse tomatoes and peppers to Russia from the Armavir region of Armenia due to the detection of the Pepino mosaic virus (PepMV) in a batch of products;

– Ban on the supply of apples and greenhouse tomatoes from Azerbaijan to Russia due to multiple violations of quarantine laws. This, according to EastFruit, will also affect a significant part of the supply of these products from Iran since a significant amount of Iran’s products enters Russia in transit through Azerbaijan;

– Ban on the supply of greenhouse tomatoes and peppers from the Izmir and Antalya provinces in Turkey due to the systematic identification of quarantine objects such as South American tomato moth (Tuta absoluta (Meyrick)), Western California (flower) thrips (Frankliniella occidentalis (Perg)), Pepino mosaic virus (PepMV), tomato spotted wilt virus (TSWV), and tomato brown rugose fruit virus (ToBRFV).

– Ban, more than a month ago, on the imports of tomatoes and peppers from Grodno, Gomel, Minsk, and Brest regions of Belarus due to the detection of the Pepino mosaic virus (PepMV).

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