Author Archives: CrispConsulting

Berry Production in Russia Is Forecast to Decrease This Year

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As of August 4, the production of commercial berries in Russia amounted to 10,800 MT, which is 35% more than in the same period of 2019 (8,000 MT), reports the Ministry of Agriculture. Kabardino-Balkaria, Altai Territory, Oryol, Moscow, Lipetsk Regions, and Krasnodar Territory are the leading regions in terms of gross harvest.

However, industry analysts believe that this year’s overall harvest of the berries will be lower than in 2018. According to the company “Technologies of Growth”, the production will amount to 18,000 MT, compared to 18,700 MT a year before. According to the forecasts of the Berry Union, the berry harvest this year will be about 20% lower than in 2019.

The Southern District was affected by frosts and hail, so the gross harvest of strawberries in the Krasnodar Territory decreased compared to last year harvest. Rains also affected the quality and quantity of the crops. Due to the restrictions imposed during the coronavirus crisis, most berry producers dealt with a shortage of seasonal workers as they could not enter Russia from the neighboring countries. Many farms had difficulties with the sales and shipments of their products.

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Russian Central Bank: Russia’s Further Economic Recovery Can Be Unstable

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Russia’s further gradual economic recovery may be unstable amid restrained consumer behavior, the Central Bank said in its report on monetary policy.

According to the Bank of Russia, further gradual economic recovery can be unsustainable due to the decline in income, restrained consumer behavior, cautious business sentiments, as well as restrictions on the part of external demand.

“Taking into account these factors, according to our forecast, GDP will decline by 4.5-5.5% this year,” the regulator said.

Earlier, head of the regulator Elvira Nabiullina noted that after a pandemic of a new coronavirus infection the Russian economy could recover in more than 1.5 years. At the same time, the regulator does not yet see the need for additional measures to support the economy. The Central Bank expects that the revival of the national economy will not “fizzle out” in the fourth quarter and the recovery will continue.

www.tass.com

Euro Reaches 88 Rubles First Time from March 30

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The euro added 1.56% and climbed to 88 rubles during the trading session on the Moscow Exchange on Friday, according to trading data.

The euro was at such level last time on March 30 of this year.

The euro decelerated later on to the increase by 1.13% and was traded at 87.63 rubles. The dollar rose by 1.6% to 74.34 rubles at the same time.

Brent oil futures prices with settlement in October 2020 dropped by 0492% to $43.04 a barrel on the London-based ICE today. The WTI oil was traded at $39.76 a barrel, down 0.4%.

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Russia Strengthens Controls over Tomato and Pepper Imports

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From July 20, the Rosselkhoznadzor has strengthened its controls over imported tomatoes and peppers. The shipments arriving in Russia will undergo additional laboratory tests, as stated by Nikolai Vlasov, deputy head of the Rosselkhoznadzor, to the National Fruit and Vegetable Union.

The letter from the Rosselkhoznadzor says that this is mostly being done to prevent the entry of the tomato brown rugose fruit virus and the tomato spotted wilt virus. The All-Russian Plant Quarantine Center has already analyzed the phytosanitary risk of these viruses and processed their inclusion in the Unified List of Quarantine Objects of the EAEU.

The initiative to strengthen controls over imported vegetables came from the National Fruit and Vegetable Union. In June, the Union sent a letter to the head of the Rosselkhoznadzor, Sergei Dankvert, in which it asked to reduce the risk of importing some of the most dangerous tomato diseases into Russia. The letter said that the virus can infect tomatoes and peppers, causing reductions in fruit size, delays in the ripening, a loss of natural color, and deterioration in the product quality.

In Russia, cases of the virus have not yet been officially registered, but they could arrive in infected vegetables from other countries. Detections have already been reported in China, Turkey, the Dominican Republic, France, Greece, Italy, Jordan, Mexico, or Spain.

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Fruit Import to Russia Decreased in Volume Term, but Grew in Value in Q1 2020

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In Q1 2020, Russia imported 1.5 mln MT of fresh and dried fruit (-2.7% year-on-year), worth $1.3 bn (+8.4%).

Fresh and dried fruits were shipped to Russia in the first quarter of 2020 from 64 countries. The main exporting countries were Ecuador, Turkey, and Egypt.

Imports from Ecuador in January-March 2020 amounted to 428,300 MT of fresh and dried fruits, 2.5% more than during the same period last year. In value terms, import increased by 2.6% to $317.7 mln. Bananas accounted for almost the entire volume.

Import from Turkey increased by 50.3% up to 256,400 MT and by 61.6% to $201.4 mln with citrus fruits prevailing.

Import of fresh and dried fruits from Egypt amounted to 177,000 MT (-4.3%), worth $118.7 mn (+6.6%). More than 90% of the supplies were citrus fruits.

Fresh and dried bananas accounted for the largest share of imports amounting to 438.7 mln MT (+2.8%), worth $326.3 mln (+3.1%). Ecuador was the main bananas exporting country accounting for almost 100% of all Russia’s banana imports, both in volume and value terms.

The import of apples declined by 2.2% down in volume terms to 239,600 MT, but increased by 26% up to $153.8 mln in value terms. The largest apple exporters were Serbia and Moldova.

Import of oranges amounted to 189,700 MT (-0.7%), worth $ 121.4 mln (+12.3%) mostly coming from Egypt and Turkey.

The largest exporters of mandarins to Russia in the first quarter of 2020 were Pakistan, Turkey, Morocco, and Egypt. During the reporting period, 167,600 MT of mandarins (+6.5%), worth $121.2 mln (+7.9%) was imported.

Lemons and limes imports accounted for 56,700 MT (-2.6%), worth $51 mln (+19.7%). The main exporter was Turkey.

Import of fresh and dried grapes increased by 0.6% up to 50,100 MT in volume terms and by 7% up to $79.7 mln in value terms. The largest volumes came from India, Moldova, Peru and South Africa.

Pears import amounted to 45,100 MT, 33% less than during the same period in 2019. In value terms, pears import supplies increased by 7.5% to make $43.1 mln. Most of the volume came from Argentina, South Africa, and Turkey.

 

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Vegetable Export from Russia Grew in Q1 2020

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The Russian Federation exported 396,700 MT of vegetables in Q1 2020. This is 20.3% more than during the same period in 2019. In volume terms, exports increased by 11.6% to $98.3 million.

During the first quarter of 2020, vegetables were exported from Russia to 64 countries. The major countries of destination were Ukraine, Pakistan, Azerbaijan, and Turkey.

A large share of the export was peas. In January-March 2020, 125,400 MT (+5.1%) of peas, worth $31.7 million (+8.2%) was exported. Pakistan, Italy, Bangladesh, and Nepal accounted for a significant share of supplies. Potato export increased to 125,000 MT worth $14.4 million (2.2 times up). The main countries of destination were Ukraine, Azerbaijan, Moldova, and Turkmenistan.

Chickpea exports came to 78,600 MT (+6.4%) worth $28.4 million (-0.4%). Most of the volume was shipped to Pakistan and Turkey. Onions and garlic exports came to 22,900 MT (-27.8%) worth $3.4 million (-35.8%), mostly to Iraq, Ukraine, Georgia, Azerbaijan, and Moldova.

Cucumber export increased by 3.5 times in volume terms to 5,200 MT by 6.8 times in value terms to $4.1 million. Cucumbers were mostly designated for Belarus and Ukraine.

Exports to Ukraine increased by 87% up to 73,500 MT in volume terms and by 67.9% up to $9.4 million in value terms. Most of the shipments were potatoes.

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Vegetable Imports to Russia Grew in Q1 of 2020

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In Q1 2020 Russia imported 575,200 MT of vegetables worth $583.5 million. In volume terms, imports increased by 1.1% compared to the same period in 2019, while in monetary terms it was up 8.9%.

During the first quarter of 2020, vegetables were imported to Russia from 96 countries. The main exporting countries were China, Turkey, Israel and Egypt.

Tomatoes make the largest share in Russia’s vegetable imports. During the first 3 months of 2020, thy account for 154,300 MT (+5.8%) worth $200.9 million (+8.9%). The major exporters of tomatoes to Russia were Turkey, Azerbaijan, Morocco, and China.

Imports of peppers increased by 15.5% to 58,800 MT worth $86.7 million, up 22.6%. The largest volumes came from Israel, China, and Turkey. Imports of cabbage amounted to 52,800 MT (-14.7%), worth $29.2 million (-6.7%). Most of these products came in from China and Uzbekistan.

Import of onions and garlic decreased by 11.7% down to 44,600 MT worth $41.3 million, up 19.7%. Onions and garlic were mainly imported from China, the Netherlands, and Egypt.

Egypt was the major exporter of potatoes to Russia in the first quarter of 2020, accounting for more than 90% of deliveries in both volume and monetary terms. During the reporting period, 44,500 MT (+8%) of potatoes worth $17.6 million were imported.

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Russia to Extend Preferential Trade Regime with Moldova, Says Dodon

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 Starting from July 1, Moldovan exports of fruits, vegetables, preserved food and wine products to Russia will be exempt from customs duties, according to the republic’s President Igor Dodon. Russian authorities have agreed to extend duty-free treatment for Moldovan exporters, as well as to provide additional privileges for transport companies, the republic’s President Igor Dodon said following a meeting with Deputy Chief of Staff of the Russian President’s Executive Office, Special Presidential Representative for the Development of Trade and Economic Relations with Moldova Dmitry Kozak in Moscow on Thursday.

“Russia agreed to extend preferences on duty-free supplies of Moldovan goods, which means that starting July 1 of this year Moldovan fruits, vegetables, preserved food and wine products will be supplied to the Russian market free of customs duties, which will enable Moldovan producers to save at least 20-25 mln euro per year,” Dodon wrote on his Facebook page.

Russia will also consider the possibility of providing assistance in the form of diesel fuel to agriculture producers affected by the drought this year, he added.

www.tass.com

 

McCain Plans to Open French Fry Production Plant in Tula Region

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McCain is set to begin the construction of its first plant for the production of French fries in the Russian Federation. In June McCain Foods Holland B.V. & McCain Europa BV established McCain Foods Rus LLC in the city of Uzlovaya, Tula Region, whose activities include the production of finished products and dishes, and the processing of potatoes.

A source in the market confirmed that McCain working on a project of a plant for the production of French fries, which is supposed to be placed in the SEZ “Uzlovaya”. Among the conditions for investors are zero import duty and VAT rate until 2065, and the first ten years, the income tax rate is 2%. In the European office McCain prompt comment was not provided. The Development Corporation of the Tula region said that they could not yet disclose information about the project.

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Russia’s Greenhouse Vegetable Production Grows by 24%

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According to the operational data of the regional agro-industrial complex management bodies, as of June 10, 2020, 604,600 MT of vegetables were harvested in winter greenhouses, which is 24% more than in the same period of 2019 (487,500 MT). Out of that, greenhouse cucumbers account for 406,200 MT (+22.5%) and tomatoes for 188,000 MT (+26.9%).

Traditionally, the Lipetsk, Moscow, Volgograd, Kaluga, Stavropol, and Krasnodar regions are leaders in the protected cultivation of vegetables.

The Russian Ministry of Agriculture is systematically working to improve state support and regulations for the agricultural market in order to increase the country’s agricultural production, meet its domestic needs, and develop its export potential.

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