Author Archives: CrispConsulting

Russia’s Vegetable Production Has Grown by 6%

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According to the operational data of the regional governing bodies of the agro-industrial complex, as of October 27, 2020, about 5.3 million mt of vegetables have been harvested in Russia, which is 6% more than in the same period of 2019.

In winter greenhouses, 1.1 million mt have been grown, which is 18.2% more than last year (930.5 thousand tons). The harvest of greenhouse cucumbers amounted to 647 thousand mt (+14.3%) and that of tomatoes to 410.1 thousand mt (+18.6%). In spring greenhouses, 1.13 million mt of vegetables have been harvested during the period at hand. Lipetsk, Moscow, Volgograd, Kaluga, Novosibirsk, the Krasnodar and Stavropol Territories and the Republics of Karachay-Cherkessia, Tatarstan, and Bashkortostan are among the top ten regions leading the production of vegetables in winter greenhouses.

As of the above date, 4.15 million mt of vegetables have been harvested in the open ground. The biggest share corresponds to onions (22.3%), tomatoes (18.5%), cabbage (17.8%), and carrots (13.6%).

These results are a direct consequence of the support measures implemented by the state, which have contributed to the sector’s development. Within the framework of the incentive subsidies, the constituent entities of the Russian Federation have the right to choose priority areas, which allows the regions to provide additional support to growers engaged in the production of vegetables. There are also mechanisms of grant support for producers and cooperatives and a set of other measures being implemented.

www.freshplaza.com

Ukraine will Harvest Less Potatoes and Vegetables

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Gross production of potatoes in 2020 is expected to reach 20 million mt, vegetables – at the level of 9 million mt against 20,3 million mt and 9,7 million mt, respectively, in 2019 (data from the State Statistics Service).

This is reported by the portal “Economic Truth”, quoting the words of the Deputy Minister of Economy of Ukraine Taras Vysotsky.

Two concepts of the Ministry of Economy have been submitted to the Cabinet of Ministers for consideration: the concept of the industrial potato development program for 2021-2025 and the concept of vegetable growing until 2025, which will subsequently be submitted to a government meeting.

“In 2021, it is planned to introduce state financial support for the installation of drip irrigation systems and the purchase of materials necessary for such work. A separate program will also be introduced to support the potato growing industry in Ukraine, ”Vysotsky wrote.

en.potatosystem.ru

Russia is the World’s Fourth Largest Banana Consumer

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Russia ranks 4th in the world in terms of banana consumption per person per year, and banana imports to Russia are forecast to continue to grow in the coming years. This was reported by Clinton Machado, head of Maersk’s Banana and Pineapple Shipping Division, at the 17th International Banana Convention.

Latin America remains the main banana exporter. The combined share of all supplies from Latin American countries is 73% of all exports. Most of the bananas grown in Latin America are exported to the United States and Europe.

“In 2019, global banana exports reached 20 million tons, up 5% compared to 2018. The Philippines and Ecuador remain the largest banana exporters in the world,” said Clinton Machado.

The main importing countries of Philippine bananas are China and Japan, but exports to these countries decreased slightly in 2019 due to the opening of trade between China and Cambodia. According to the Ministry of Agriculture of Cambodia, the export of bananas to China during the first five months of 2020 amounted to 121 thousand tons, and by 2021 the country plans to double the volume shipped.

“According to the forecasts of the Food and Agriculture Organization of the United Nations (FAO), the world’s banana production will increase to 126 million tons by 2029,” Clinton Machado added.

India is the world’s largest banana producer, but most Indian bananas are intended for the domestic market. According to Clinton Machado, government investment in the industry has allowed Indian producers to export more of their products, and if this initiative is successful, India will be able to supply bananas to the Middle East and Mediterranean regions.

www.freshplaza.com

Russian GDP Growth of 2.7% in 2021 Suggested by Conservative Outlook, Says the Economic Development Ministry

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The conservative scenario of Russia’s macroeconomic outlook suggests GDP growth of 2.7% in 2021, and 2.9% in 2022, with further stabilization at the level around 2.5% amid persisting lower business activity in a number of sectors, according to the country’s social and economic development outlook for 2021 and the planned period of 2022 and 2023 presented by the Economic Development Ministry.

According to the base case scenario of the outlook, Russia’s GDP will contract by 3.9% in 2020, and grow by 3.3% in 2021, 3.4% in 2022, and by 3% in 2023.

“From the viewpoint of domestic conditions, the conservative scenario suggests lower business activity persisting long in the sectors, whose activities were restricted in response to the novel coronavirus infection spread. Meanwhile structural changes in consumer demand, both global and inside Russia, will slow down the recovery of such sectors as entertainment and leisure, tourism, personalized consumer services,” according to the outlook.

The conservative scenario “is based on the assumption that the sanitary and epidemiological situation in the world will become less favorable, a protracted recovery of the global economy and structural slowdown of its growth rates in the mid-term due to the aftermath of the novel coronavirus infection spread.” The base case option depicts the most probable scenario of Russia’s economic development considering the expected external environment and the economic policy measures being taken.

“In the conservative option of the outlook the global economic recession triggered by restrictions imposed in the biggest countries will deepen the structural problems accumulated before the pandemic,” the ministry emphasized.

Among them are a high debt burden in developed states and a number of emerging economies, a slowdown of global trade growth due to mounting trade frictions between the largest countries, slow growth of labor efficiency, an increase of global inequality. “Amid this environment global economy will be recovering slower than suggested by the base case scenario,” the outlook said.

The conservative option of the macroeconomic outlook also suggests oil prices in the range of $43-45 per barrel in the mid-term amid weak energy demand.

“Weak demand for energy resources will put additional pressure on global crude oil prices. That said, the OPEC+ agreement will continue influencing the oil market, the same as output reduction in the US and the countries with high production costs. In those conditions, oil prices are projected in the range of $43-45 per barrel in the mid-term in the conservative scenario, which is lower than base-case parameters,” the ministry explained.

Moreover, the accumulated corporate losses in the conservative scenario will restrain the recovery of profits and, as a result, of investment activity. “Amid this environment growth rates of fixed investment are projected at the level of 3.7% in 2021 and around 4.5% in the mid-term,” according to the outlook.

“Considering more moderate, than in the base case scenario, economic growth rates, growth rates of real disposable income of households in the conservative option are expected in the range of 1.6-1.9% in the mid-term, which will have a restraining effect on consumer demand,” Russia’s Economic Development Ministry said.

It estimates the growth of retail trade and charged services to consumers in 2021 in the conservative scenario at 4.5% and 5.6%, respectively, whereas in 2022-2023 both will continue growth by 2-2.3%.

www.tass.com

China Becomes Russia’s Biggest Fresh Produce Market

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Data from the Agricultural Export Center of the Russian Ministry of Agriculture show that as of September 20, Russia exported 2.67 billion US dollars worth of produce to China, experiencing an increase of 27% over the same period last year. China is the largest buyer of Russian produce, accounting for 14% of total agricultural exports from Russia.

At the same time, China is also actively exporting produce to Russia. In early September, 906 tons of fresh vegetables were successfully shipped to the Zabaikal region. Fresh vegetables exported to Russia include eggplants, radishes, cucumbers, and zucchini. 275 tons of fresh garlic, 400 tons of peppers, 132 tons of onions, 44 tons of carrots, and 33 tons of ginger were exported.

www.freshplaza.com

Morocco remains the biggest blueberry exporter to Russia

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Russia has increased its imports of blueberries by 61% (value) between January and June 2020. In fact, they reached 4.200 mt worth 30,5 million dollars. For the Russian Federation, Morocco is at №1 in the ranking of the main supplier countries of these fruits.

The Russians spent $13,7 million on Moroccan blueberries. They imported 1.900 mt of these blueberries from the Kingdom, 36,4% more than a year earlier. Chile, which occupies the second place in the ranking of suppliers, has more than doubled its shipments of “blueberries” to Russia, up to 1.000 mt.

Blueberriesconsulting.com explains this means, Morocco and Chile account for almost 80% of all imports of this agricultural product in Russia. The third and fourth largest exporters of blueberries to Russia are occupied by Peru and Serbia. In fact, these two countries increased their exports of this fruit to Russia by 75% and 95%, respectively.

www.freshplaza.com

Euro rises above 90 rubles first time since February 2016

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The euro rose by 0.98%, reaching 90.1 rubles on the Moscow Exchange on Monday.

The last time the euro was above 90 rubles in February 2016.

As of 13:15 Moscow time, the euro rate was at around 89.97 rubles (+0.83%), and the dollar rate grew by 0.92% to 76.13 rubles.

At the same time, the price of November futures contract for Brent crude oil on London’s ICE decreased by 1.78% to $41.9 per barrel. WTI crude was trading at $39.39 per barrel (-1.89%).

www.tass.com

The Ministry of Agriculture expects an increase in apple harvest within 10 years

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The Ministry of Agriculture expects an increase in apple harvest within 10 years. In the next five years, the total apple harvest in the country will double, said the first deputy head of the department, Dzhambulat Khatuov.

“Today we consume 3.5 million MT of apple, we produce just over 1 million MT. The existing ambitions suggest that in the next five years we will double the volume of production. <…> And this dynamics, as we see it, will last at least 10 years “, – said Khatuov.

He explained that, among other things, modern technologies that are being introduced by farmers make it possible to increase production volumes: they create new apple orchards using new technologies, most of them based on the principles of intensive gardening.

“The most important thing is the state support measures. <…> The south of the country is Krasnodar Territory, Stavropol Territory, Kabardino Balkaria, Ingushetia, Dagestan, Crimea, Belgorod, Voronezh, Lipetsk are the main players that are growing in production volumes,” the deputy minister added.

www.tass.ru

X5 Opens New Logistics Facility in Tatarstan

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X5 Retail Group, a leading Russian food retailer that operates the Pyaterochka, Perekrestok, and Karusel retail chains, announces the expansion of its logistics infrastructure in the Volga region and the opening of a Pyaterochka distribution centre (DC) in the Republic of Tatarstan.

With a total floor area of 18,000 sq m, the Yelabuga DC features four storage zones for fresh products, fruits and vegetables, dry goods and alcoholic beverages. Each zone has a specific temperature band that is best suited to keep relevant products fresh.

Once it reaches design capacity, the new DC will supply food products to 600 Pyaterochka stores in 300 localities across the Republics of Tatarstan and Udmurtia. The logistics facility is expected to process 1,500 tonnes of goods per day, with its seamless operation supported by more than 250 employees and some 100 vehicles. Overall, Pyaterochka has generated over 10,700 jobs in the Republic of Tatarstan.

The launch of the new DC will enable Volga region food producers not only to reduce their transportation costs, but also to expand the geography of their sales. At full capacity, the logistics facility will be able to handle about 500 suppliers, further increasing the share of Tatarstan producers in the chain’s regional sales beyond the current level of over 30%. Today, Pyaterochka retail chain works with 88 local suppliers, of which 18 were added to the supplier list in 2019.

The Yelabuga DC is the second advanced logistics facility opened by Pyaterochka in the Republic of Tatarstan. In November 2019, the Kazan DC was opened in Zelenodolsk, bringing the total floor area of Pyaterochka’s warehouse facilities in the region to over 57,000 sq m. Today, the Republic of Tatarstan has more than 700 Pyaterochkas, including 24 stores that opened this year.

The opening ceremony was attended by Alexey Pesoshin, Prime Minister of the Republic of Tatarstan, Sergei Goncharov, General Director of Pyaterochka, and executives of suppliers from the Volga Federal District invited by X5.

www.x5.ru/en

Russia: Online Purchases Tripled

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According to a study by Russian Standard Bank, in H1 of 2020, the number of Russian online purchases has tripled compared to the same period last year.

“The first six months of this year showed that Russians easily replaced traditional shopping in stores with online shopping. An analysis of transactions with cards of all banks in the Internet acquiring network of Russian Standard Bank showed that their number, compared to the same period in 2019, increased three times, and the total turnover – 2.3 times. At the same time, the total average check for online purchases decreased by 22% and amounted to 1,673 rubles,” the bank’s representatives said.

Most often, Russians made purchases in clothing stores (the average check was 2,273 rubles) and in supermarkets (the average check was 2,267 rubles). After the quarantine restrictions were lifted, spending on online shopping began to grow again. In June, the average check increased by 8% compared to April and returned to the numbers of January 2020.

www.retail.ru