Author Archives: CrispConsulting

Russia’s Inflation Picks Up After Ruble Crash

Written by

Russia’s inflation rate rose to 2.5% in March, official statistics showed Monday, reversing a months-long trend of slowing increases in consumer prices and an early indication of the impact of a crash in the value of the ruble and the coronavirus pandemic.

The year-on-year inflation rate ticked up in March from 2.3% the month before, mostly due to an increase in food prices, according to the state statistics agency.

Russians started to stockpile food in March amid the coronavirus pandemic, which hit Russia shortly after oil prices and its currency the ruble slumped as a result of a collapse in talks between Russia and the OPEC cartel.

Among food prices most affected were those for sugar which rose by 13.5% on average, while grains and legumes were up by 13.4%, and butter by 9.2%.

The Central Bank warned on March 20 that the ruble’s depreciation could spark price increases, but insisted this would only be “temporary” and would be offset by the slowdown of the global economy.

The central bank added that inflation could now surpass the government’s objective of 4% for the year.

February’s inflation rate of 2.3% was the lowest in two years.

www.themoscowtimes.com

An Increase of 33% in Greenhouse Vegetable Production in Russia

Written by

As of March 17, 2020, 198,400 MT of vegetables were harvested in winter greenhouses, which is 33.6% higher than in 2019 (148,500 MT). The yield of greenhouse cucumbers is 142,000 MT (+42%), tomatoes – 52.500 MT (+ 17.7%), green crops – 3,900 MT (+39, 2%).

In 2019, the gross harvest of vegetables in winter greenhouses amounted to a record of 1.14 million MT. This is 14% more than in 2018 and 26.7% more than the average for the last five years. The leading regions are the Lipetsk, Moscow, Krasnodar, Stavropol, and Volgograd regions.

This year, the Ministry of Agriculture of Russia also expects a record production of greenhouse vegetables – at least 1.25 million MT, which is 6.1% higher than in 2019.

Over 5 years, more than 1,200 hectares of high-tech greenhouse complexes have been built and modernized. Production volumes have increased by 87.9% compared to 2014. By 2025, the Ministry of Agriculture plans to increase the production of greenhouse vegetables to 1.6 million MT.

www.mcx.ru

In Russia, the List of Fruits and Berries Taxed at a Reduced VAT Approved

Written by

New HS codes were added to the list of food products taxed at a reduced VAT rate (the decree of the Government of the Russian Federation No. 1952 dated 12/31/2019). Fruits and berries from the list are subject to 10% VAT instead of 20% from October 2019.

In particular, it concerns Russian and imported fresh fruits: apples, pears, quinces, all categories of citrus fruits, grapes, apricots, cherries, cherries, peaches, nectarines, plums, thorns and cherry plums, watermelons, melons, papaya, avocados, dates, figs, pineapples, guava, mango, mangosteens, kiwi, persimmon, barberry, feijoa, medlar; berries: strawberries, raspberries, blackberries, black, white or red currants, gooseberries, cranberries, blueberries, blueberries, cornel, wild berries; as well as planting material of fruit and berry crops: seeds, seedlings, roots, cuttings, and layering.

Bananas, plantains, nuts, as well as any kind of fruit and berry processing products, are not included in the list.

The full version of the document can be found on the Official Internet portal of legal information.

www.fruit-inform.com

Turkey to Resume Tomato Exports to Russia

Written by

On March 7, after a month-long disruption due to the yearly quota limit, Turkish tomato exports to Russia have resumed. Moscow decided to lift the yearly quote from 150,000 MT to 200,000 MT after some containers carrying Turkish tomatoes were returned last month, saying that the quotas were already met.

“We exported 98,000 MT of tomatoes to Russia in 2019. Turkish exporters can send 50,000 MT [of tomatoes] in a couple of months. Thus, we want the quote to be removed completely,” said Hayrettin Uçak, chairman of the Aegean Union of Fresh Fruit and Vegetable Exporters.

Turkish Trade Minister Ruhsar Pekcan and Agriculture Minister Bekir Pakdemirli are in talks with their Russian counterparts to lift the quotes in bilateral trade and they expect the trade diplomacy to bear fruits in the upcoming months, said Uçak.

Turkey’s tomato exports to Russia increased 181% in 2019, bringing the country a total of $74.5 million.

In January 2016, after Turkey downed a Russian fighter jet violating its airspace, Russia banned imports of Turkish fruits and vegetables including tomatoes, oranges, apples, apricots, cabbage, broccoli, mandarins, pears, peaches, cucumbers, plums, strawberries, onions, cloves, and poultry.

Russia relaxed these trade sanctions during the summer of 2017.

www.freshplaza.com

Rising Price of Imported Pears in Russia

Written by

In winter, imported products traditionally prevail in the pear market in Russia, reported EastFruit project analysts. The main countries supplying pears during this period are Argentina, Belgium and the Netherlands. At the same time, it is worth noting that prices for imported pears have always been significantly higher than for domestic products. And today, prices for imported pears continue to rise.

According to market operators, the main reason for the fairly high prices in this segment is the growing demand for these fruits and the low yield of pears in most EU countries and the countries of the Southern Hemisphere this season.

On the Russian market, imported pears are consequently sold for 114-150 rubles / kg ($1.74-2.29/kg), which is on average 14% more expensive than at the end of the previous working week.

According to market participants, several factors explain the price increase. Firstly, the supply in the countries that traditionally deliver these products to the Russian market during the winter is already running out, and therefore it can be difficult to acquire the volumes needed. Secondly, fluctuations in exchange rates continue to have an impact.

It is worth noting that at the moment, imported pears in Russia are already on average 15% more expensive than at the end of February last year. This price increase does not please the suppliers of imported products, since the consumption of pears in Russia will fall rapidly as they rise in price. Importers believe that further appreciation of these fruits may lead to a sharp drop in the volume of pear imports to Russia.

www.freshplaza.com

Russia Imported Less Fruit and Vegetables in 2019

Written by

Russian imports of fresh fruit and vegetable have seen a recovery in recent years after introducing the boycott on food products from the European Union, USA and some other countries in 2014. However, in 2019, these imports declined again. Compared to 2018, 4% fewer fruit and vegetables were imported.

The import of fresh vegetables remained at the same level as in 2018. Fresh fruit imports shrank by 5%. There was a sharp decline in the import of apples, pears, and peaches/nectarines. These fell by 17, 16, and 15%, respectively.

Mandarins are the second most imported fruit in Russia. Imports of this citrus fruit have never been as high as they were last year. The import of the major product groups such as tomatoes, oranges, and grapes was less.

Russia imported 7 million MT of fresh fruit and vegetables last year. Compared to the years before the import ban, this is 1,5 million MT less. This volume still makes Russia the third-largest importer of fresh fruit and vegetables. In first and second places are the United States and Germany.

(more…)

Russia Proposes Raising Turkish Tomato Import Quota by 50,000 MT

Written by

January 31, Russia’s Agriculture Ministry proposed increasing Turkey’s tomato import quota by 50,000 MT to 200,000 MT, the RIA news agency reported.

Russia lifted a ban on vegetable imports from Turkey in November 2017 but set quotas as tensions between the two countries eased after Ankara apologized for downing a Russian military jet.

www.reuters.com

Turkish Tomato Exports to Russia on Rise, Totaling $86 Million in 2019

Written by

Turkey’s tomato exports to the Russian Federation saw a 186% increase in 2019, compared with the previous year, reaching $86.05 million in value.

According to the Southeastern Anatolia Exporters’ Association (GAİB), the country’s overall tomato exports totaled around $304.5 million in 2019, with exports to 56 countries around the world recorded at $291.8 million in 2018.

Russia ranked first among countries to which Turkish exporters sent tomatoes, with a total of $86.05 million in revenue, increasing from $30.6 million in 2018. Romania and Ukraine followed with export volumes worth $36.4 million and $30.01 million, respectively.

Greenhouse Investors and Producers Association (SERA-BİR) and GAP Greenhouse Gardeners Association Chairman Müslüm Yanmaz told Anadolu Agency that 2019 saw a decline in crop volume due to seasonal conditions, which did not reflect negatively on exports.

Yanmaz said that exporters sought to bring the tomato export volume to the levels prior to a diplomatic row between Ankara and Moscow after Turkey downed a Russian aircraft that violated Turkish airspace in March 2015.

In January 2016, Russia banned imports of Turkish fruits and vegetables, including tomatoes, oranges, apples, apricots, cabbage, broccoli, mandarins, pears, peaches, cucumbers, plums, strawberries, onions, cloves and poultry.

However, in the summer of 2017, Moscow relaxed trade sanctions placed on the country.

Official data demonstrated that Turkey’s fresh tomato exports in 2014 were valued at $426 million while $275 million of this amount came from exports to Russia, which signifies that Russia alone constituted 65% of Turkey’s fresh tomato exports.

Yanmaz noted that exporters were actively in search of other new markets, including China.

www.dailysabah.com

Vegetable imports 2019

Written by

According to the SeaNews TSVT service, in January-November 2019, 2 million MT of vegetables worth $1.5 billion were imported into Russia.

In physical terms, imports fell by 14% compared to the same period in 2018, in money terms – by 3.6%.

Most of all, tomatoes are brought to Russia. According to the results of 11 months of 2019, their deliveries amounted to 484,400 MT (-6.8%) in the amount of $ 544 million (-3.1%). The largest importer of tomatoes to Russia was Azerbaijan. Significant volumes also came from Turkey, China, Morocco and Belarus.

Potato deliveries in monetary terms decreased by 39.7% to $131 million, in physical terms – by 48.1% to 295,500 MT. The largest volumes of deliveries were from Egypt, Azerbaijan, China and Pakistan.

Onion imports (this includes both onions and shallots, leeks and other varieties) amounted to 192,700 MT (+ 21%) and $79.9 million (+ 36.8%). Most of the products came from Egypt and China.

The import of carrots decreased by 2.7% to 166,399 MT; in money terms, on the contrary, it increased by 3.7% and amounted to $ 75.2 million. The largest volumes came from Israel, China and Belarus.

The largest exporters to Russia of cabbage (cabbage, cauliflower, kohlrabi, leaf and others) in January-November 2019 were China, Uzbekistan and Iran. During the reporting period, cabbage was delivered to Russia 149,700 MT (+ 15.9%) for $70.9 million (+ 31.1%).

138,200 MT (-3.4%) were imported in the amount of $167.9 million (+ 0.6%). The main suppliers were China and Israel.

Cucumbers were imported 79,600 MT, 22.3% less compared to the same period in 2018. In monetary terms, supplies decreased by 16.2% to $ 82.6 million. Most of the volume accounted for Iran, China and Belarus.

The supply of garlic in physical terms increased by 3.9% to 48,400 MT, in money terms – by 8.8% to $67.1 million. The largest volumes came from China.

The main suppliers of canned vegetables were India, dried – China and India, frozen – Belarus, China and Serbia.

In January-November 2019, vegetables were imported to Russia from 76 countries. The main supplying countries were China, Azerbaijan and Egypt.

In January-November 2019, 453,900 MT of vegetables were imported from China, an increase of 3.4% compared to the same period in 2018. In monetary terms, imports amounted to $369.7 million (-1%).

Supplies from Azerbaijan decreased by 3.1% to 235,800 MT. In monetary terms, the import of vegetables increased by 1.5% to $210 million.

229,700 MT of vegetables (-46.7%) worth $ 118.1 million (-30%) were imported from Egypt.

www.a-ipp.ru

Russia Approves New Food Security Doctrine

Written by

Russian president Vladimir Putin has approved a new doctrine on the country’s food security, updating the previous decree from 2010.

The decree came into force from the day it was signed on January 20. Putin instructed the government within three months to develop and approve an action plan to implement the provisions of the new doctrine.

According to the new doctrine, “Russia’s food security is the state of the country’s socio-economic development, whereby the food independence of the Russian Federation is ensured, the physical and economic availability of food products that meet mandatory requirements is guaranteed for every citizen of the country, in volumes not less than rational food consumption standards needed for an active and healthy lifestyle.”.

In the previous version of the Doctrine, to assess the state of food security, the specific weight of domestic products in the total volume of commodity resources of the domestic market, taking into account carry-over stocks, was used as a criterion. In the new document, the approach has been changed: now food independence is defined as the level of self-sufficiency, which is calculated as the ratio of the volume of domestic production to the volume of domestic consumption of the products.

The document also highlights the interests of the state for the long term. Among them are the sustainable development and modernisation of agriculture and fisheries, agricultural production, feed, livestock breeding, seed selection. Also in the long term, the state is interested in banning the import of GMO, raising and breeding animals whose genetics were changed.

The document also sets thresholds for certain product groups, with self-sufficiency rates of at least:

  • 95% for grain;
  • 90% for sugar;
  • 90% for vegetable oil;
  • 85% for meat and meat products;
  • 90% for milk and dairy products;
  • 85% for fish and for fish products;
  • 95% for potatoes;
  • 90% for vegetables and melons;
  • 60% for fruits and berries;
  • 75% for seeds of the main crops of domestic selection;
  • 85% for table salt.

The previous version of the food security doctrine did not mention the category of fruits and vegetables.

www.iegvu.agribusinessintelligence.informa.com