Ukrainian apples not competitive in Russia

Russian importers do not want to work with Ukrainian apples due to their high prices. Ukrainian apples are offered averagely at EUR 0.70-0.75/kg in Russia . At the same time, sufficient quantities of Serbian and Moldovan apples of comparable quality are offered at EUR 0.60-0.65/kg in the Russian market. Large wholesale lots of high-quality apples from Poland are sold at the same prices. In addition, every year, a high import duty on the EU apples currently in force in Russia is reduced 2 times on January 1 that traditionally increases the pressure on prices.

In Ukraine, current prices for apples are 15-20% higher year-on-year. Ukrainian farmers plan to start their sales of high-quality apples only since the mid-December. Those farms that are selling apples from storage offer their produce at prices not lower than EUR 0.59-0.68/kg and report of the stable demand in the internal market in the event of such prices. Apples not suitable for storage are offered at last year’s prices: EUR 0.27-0.45/kg.

Source: www.freshplaza.com

Russia gets fruity as largest importer of apples and pears

USDA announced that Russia became the world’s number one importer of apples and pears in the 2010 marketing year, a trend that is likely to continue throughout 2011, as the country trends towards healthy eating. This year, the USDA estimates the fruit hungry nation could import as much as 1.11 million metric tons and 412,000 tons of apples and pears respectively. Despite the magnitude of the country, Russia still depends heavily on imports because it only produces one-third of the fruit it consumes. “Russians are eating more fruit and diversifying the types of fruit they consume due to increasing disposable incomes and a trend toward eating more healthy diets,” the U.S. Department of Agriculture said in its Moscow attaché.

Still, the amount of fruit Russians consume remains much lower than their counterparts in the U.S., Europe, Japan and China. According to the USDA, the typical Russian person consumes only 71 kg of fruit per capita/year while an American would eat 122.5kg per capita/year. But with Russians already consuming 10% more fruit last year, growth rates are certainly alarming. Fruit consumption patterns in Russia vary depending on the part of the country. In smaller cities or rural areas, people tend to eat local produce while city dwellers in Moscow or St. Petersburg eat higher quantities of imported fruit.

Source: www.freshplaza.com

Retail chains in Russia and Ukraine waiting for offers

The 2011 situation in the Russian and Ukrainian market showed the importance of direct contacts between international suppliers and retail chains from the Eastern European. Retail chains in Russia and Ukraine are the largest purchasers of fruits, vegetables and potatoes, therefore Fruit-Inform decided to include the First Ukrainian-Russian Trade Forum in the program of the 8th International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter”.

The conference takes place in conjunction with Fresh Produce Ukraine 2011 (November 30 – December 2, 2011), the international fair for fruit and vegetable production, processing, storage and handling technologies of Ukraine and CIS with about 10,000 horticultural business professionals from Ukraine, Russia, Poland, Moldova and other countries.

Participation has already been confirmed by X5 Retail Group (Perekrestok), Viktoriya (Viktoriya Kvartal, Dyoshevo, Semeynaya Kopilka and Viktoriya retail chains), Tander (Magnit), Auchan, Metro, ATB-Market, Kontinent, Karavan, Klass supermarket chain, Ukrainskiy Retail (Brusnichka freshmarkets).

Source: www.freshplaza.com

Demand drives Russian fruit imports up

In June-July 2010, Russia became the largest importer of apples and pears in the world with a combined total import volume of 1,521,600 MT. Fruit consumption in Russia is going up, reaching 71 kg per person in 2010. This trend is likely to continue, supported by a trend toward healthy diets in Russia. Russia produces only 30% of the fruit it consumes and therefore relies heavily on imports.

In June-July  2011,  Russian imports of apples and pears are expected to go up slightly and reach 1,115,000 metric tons (MT) and 412,000 MT, respectively. The grape import forecast is around 403,000 MT, slightly lower the 2010 level. The long-term prospects for U.S. apple, pear and grape exports is good given that Russian production is not expected to increase significantly. In the short term, U.S. exports could face challenges based on price because of the weakening of the Ruble since September.

Source: www.freshplaza.com

Azbuka Vkusa launches its “green” program

Azbuka Vkusa has launched a massive eco-program which implies total switch to biodegradable shopping bags and packing. From now on all purchases are put into biodegradable bags which remain free of charge for customers.

Switch to eco-friendly bags is the first step of the new corporate social responsibility program, carried out by the retailer.

As further steps Azbuka Vkusa is planning to broaden the line of craft bags of different size and eco-friendly jute bags. The company is considering the option of total refusal of plastic packaging.

Source: www.retail.ru

Russia hopes to finish WTO talks by yearend

Russia hopes to finish talks on gaining membership of the World Trade Organization (WTO) by the end of the year, Russian President Dmitry Medvedev said on Sunday.

Russia has been in membership talks with the 153-nation WTO for 17 years and remains the only major economy still outside the organization.

Medvedev is now accepting in Moscow Swiss President Micheline Calmy-Rey, who said: “I hope that today’s talks will be successful and…Russia will join the WTO till the end of the year.”

“We would also like it,” Medvedev added.

Source: en.rian.ru

Russia is close to joining the WTO after being offered a compromise by Georgia

Georgia, like all WTO members, has an effective veto on Russia’s membership, and it is the last to agree. Its offer of a compromise deal was the climax of a long negotiation, overseen by Swiss mediators, about how to handle trade through two breakaway regions of Georgia that are loyal to Russia.

Russian negotiator Maxim Medvedkov said Russia would give its response by early next week.

For Russia, which has strong exports of oil and gas, the benefits of WTO membership may be slow to materialize, though the World Bank estimates it could increase Russian GDP by 3.3 percent in the medium term.

Advocates of membership say Russian consumers will benefit and Russia will have to become more efficient, making good on the government’s mantra of diversification by putting the oil-dominated, state-led economy on a diet of rule-based openness.

Source: www.reuters.com

Ukraine may double apple exports in the current season

According to Fruit-Inform, in August and September 2011, the Russian Federation’s apple imports from Ukraine grew year-on-year.

As of October 2011, internal prices for apples are higher year-on-year in Ukraine. Such a fact is connected mainly with big producers not hurrying with sales of their produce. Practically all fresh apples harvested by them are stored. Moreover, Ukraine’s storage capacity significantly expanded in the past year. Farmers plan to start their main shipments in early December. Many of them expect to increase their exports to Russia 1.5-2 times year-on-year.

How the current season situation will favor Ukrainian producers’ plans? This and many other questions will be answered at the 8-th International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter”. The event will take place in conjunction with Fresh Produce Ukraine 2011 Fair which will be held at IEC, the most up-to-date exhibition center of Ukraine in Kiev, from November 30 to December 2, 2011.

The conference’s third day will be fully devoted to the Trade Forum involving key Russian and Ukrainian retail chains, importers and wholesalers that will enable the participants to receive the unique information about the Eastern European fruit and vegetable sector.

Source: www.freshplaza.com

Russia and EU agreed on WTO terms

Russia and EU have solved all bilateral issues pertaining Russia’s entrance into WTO. There is only one obstacle left on the way to WTO – Georgia’s opposition. Georgia’s opposition is the final barrier, and Russia needs to solve this before a WTO summit on December 15.

Karel de Gucht, the EU trade commissioner, has called on Georgia to drop opposition. “There is now very little time left to reach a bilateral agreement between Georgia and Russia. I call on both parties to continue their efforts to find a solution in a spirit of compromise,” The Financial Times quoted de Gucht as saying last week.

In televised comments last week, Russian President Dmitry Medvedev said his country would “survive” if it didn’t get WTO membership.

Source: www.retail.ru, en.rian.ru

Russia to Raise Production of Grapes

In 2011 the volume of grapes grown in Russia will rise to 350-360 thousand tones vs 324,000 tones in 2010.

These figures were reported by Leonid Popovich, the President of the Russian Union of winegrowers and winemaking, on the annual meeting in Abrau-Durso. Unfortunately the vineyards lost due to severe frost 5 years ago haven’t been restored yet. In 2010 there were 60.9 thousand hectares of vineyards in contrast to 61.3 thousand hectares in 2006.

Source: www.fruitnews.ru