Author Archives: CrispConsulting

Result of Sanctions on EU Food Imports: Russian Consumers Pay an Extra $7 billion a Year

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The Russian sanctions on the import of EU food products is costing Russian consumers RUB445 billion ($7 billion) a year, or about $50 a year per head, according to a study by economists at RANEPA and CEFIR.

And the cost is mainly borne by consumers that absorb 84% of the increased costs, while food manufacturers carry only 3% of the extra burden, the study found. Food importers carry another 13% of the burden in net losses.

Russia imposed the agri-sanctions on Europe as a tit-for-tat measure after Europe and America slapped punitive sanctions on Russia following its annexation of the Crimea in May 2014. Since then President Vladimir Putin has said the Russian sanctions on food cost Europe €100 billion a year, although it is not clear where he gets this figure from.

However, mutual trade between Russia and the EU has fallen by about that amount in the last five years and many EU food exporters have been badly wounded by the Russian sanctions. Previously Russia was a major export market for things like pork and fruit. Previously Russia was a major export market for things like pork and fruit. High end processed food products like Italian cured meats and posh French cheese have almost entirely disappeared from Moscow shop shelves since the ban was introduced. (more…)

Prices for Iranian Fruit and Veg Expected to Fall in Russia

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Economists forecast a 3-4% drop in the prices paid for vegetables and fruits imported by Russia from Iran, as well as a 30% increase in their share in the Russian market.

This would be the result of the reduction in customs duties between the Eurasian Economic Union (EAEU) and Iran. For Tehran, tariffs will decrease by an average of 64% after the agreement on the creation of a temporary free trade zone comes into force.

Payments for nuts will be completely canceled; for vegetables, they will drop by 25-50%; for fruits, by 50% to 100%. Due to these declines, the price of tomatoes, cucumbers, potatoes or herbs should become cheaper.

For entrepreneurs from the EAEU (Russia, Armenia, Belarus, Kyrgyzstan and Kazakhstan), Tehran is in turn reducing tariffs by an average of 23%. The agreement will remain in force until October 2022, after which a fully-fledged free trade zone is planned to be created.

Experts have praised the agreement with Iran and said that trade between both countries could grow by $ 1.5 billion.

www.freshplaza.com

Russia Harvests Almost 1 million MT of Greenhouse Vegetables in First Nine Months of 2019

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In the first nine months of 2019, Russian producers harvested 966,700 MT of vegetables grown in protected agricultural production, out of which 897,000 MT were cultivated in winter greenhouses. This is 13.5% more than the figure reached in 2018 (790,400 MT). According to the report, as of October 22, 2019, 547,700 MT of greenhouse cucumbers had been harvested, which is 12.8% more than in the same period of 2018 (485,500 MT). Also, the tomato volume stood at 336,800 MT, which is 15.2% more than in 2018 (292,400 MT).

This year, the Ministry of Agriculture of Russia expects a record volume of vegetable production in winter greenhouses: 1.2 million MT. This is 18% higher than the target (1.02 million MT) and 20% more than in 2018 (1 million MT).

The leaders in the production of greenhouse vegetables are the Krasnodar and Stavropol Territories, the Lipetsk and Moscow Regions, and the Republic of Bashkortostan.

In recent years, the Russian greenhouse vegetable growing industry has given a significant boost to investment. Over the past five years, more than 1 thousand hectares of high-tech greenhouse complexes have been built and modernized. In 2018, 350 hectares of greenhouses were commissioned and modernized. The total acreage of ​​winter greenhouses over the years has increased to 2.5 thousand hectares, which is a quarter more than in 2014.

Considering that, in terms of performance, the new greenhouses do significantly better than previously built ones, the production volumes have increased by 65% ​​compared to 2014. By 2025, the Ministry of Agriculture expects the production of greenhouse vegetables to reach 1.5 million MT.

www.freshplaza.com

A Refrigerator Warehouse Will be Added to the Checkpoint with Latvia

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It is planned to open a warehouse complex in the Pskov region on the border with Latvia, the press service of the regional administration reports.

The facility will be located on the M-9 Baltiya highway near the Burachki international customs checkpoint. The volume of investment in the project is estimated at 240 million rubles.

“The warehouse complex will be located on the south side of the Burachki checkpoint. This is the only opportunity for the development of a customs post, ”says Andrey Dubenkov, deputy director of the Group Invest company.

The warehouse will be designed for one-time unloading of five trucks. In addition, an open area designed for 40 units of freight transport, as well as an area with freezers, will be provided on its territory. Representatives of veterinary and phytosanitary services will be able to carry out customs clearance of food products.

It is supposed to hand over the object in a year – in October 2020.

www.a-ipp.ru

Peaches were Turkey’s most exported fresh produce to Russia

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According to the Eastern Black Sea Exporters Association’s (DKIB) figures, in the first 9 months of the year, Turkey exported 505,547 MT of fresh fruits and vegetables to Russia, worth $412.6 mln. Peaches ranked first with an export volume of 73,455 MT and with an export value of $75.8 mln. Peaches were followed by tomatoes and grapes.

Last year, in the same period, Turkey exported 72,897 MT of peaches for $66.8 mln. Thus, peach exports to Russia increased by 1% in terms of volume and by %13 in terms of value.

The Black Sea Region was responsible of 101,883 MT of the overall fresh fruits and vegetables exports to Russia. The region earned $83.9 mln from these exports. Peaches also ranked first in Black Sea Region’s exports to Russia. 14,541 MT of peaches were exported from the area in exchange of $14.9 mln.

www.freshplaza.com

 

 

 

 

Russia Imported 197,400 MT of Juice, Worth $325 Million in 2018

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In 2018, Russia imported 197,400 MT of juice, worth $325 million, including the apple juice – 93,800 MT, worth $97.4 million, accroding to the Ministry of Agriculture of the Russian Federation.

Meanwhile, the Russian juice industry produced 2.4 billion liters of juice,1.6% more compared to 2017.

The average yearly consumption of juice products per person is 15.5 liters. Juice products include: juices (27%), nectars (52%) and juice drinks (21%).

www.fruit-inform.com

More Uzbek Vegetables and Fruits to be Exported to Russia

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Fruits and vegetables, exported from Uzbekistan, will be delivered to Russia according to a simplified scheme. The corresponding agreement was signed in Tashkent on 1 October during a visit to Uzbekistan by a delegation of Russian senators led by Valentina Matvienko.

Dozens of Russian companies now work in Uzbekistan, and the number of enterprises with Russian participation has long exceeded one thousand. More than 7 billion dollars alone are investments in the country’s economy by Russian oil giant Lukoil, while Gazprom is developing the second field here.

On 1 October, representatives of the government and business of Russia and Uzbekistan put their signatures under another document that will help bring more grapes, persimmons, figs, pink pomegranate, tomatoes and other famous Uzbek fruits and vegetables to our country. This is a “road map” that aims to quickly deliver fruit and vegetable products from Uzbekistan to the Russian Federation, including by simplifying customs procedures.

www.freshplaza.com

Russia to Create Green Corridor for Israeli Agricultural Products

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Russia will launch a “green corridor” to simplify the supply of agricultural products from Israel, Russian President Vladimir Putin said at an international conference of the Keren Hayesod Foundation.

“Bilateral cooperation in the agricultural sector is also of great importance. Currently, work is underway to launch the so-called ‘green corridor’ to simplify the supply of Israeli agricultural products to the Russian market,” the president said.

According to the FCS, food products and agricultural raw materials account for 35.99% of Russia’s total imports from Israel. Of these, vegetables and tubers were imported for a total of $177.7 million, and fruits, nuts, citrus fruit peel or melons for $53.4 million.

www.freshplaza.com

Ministry of Agriculture of the Russian Federation: Russia Reduced Fruit Exports and Increased Imports

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Russia reduced fruit exports and increased imports according to the Ministry of Agriculture of the Russian Federation.

The export of pomaceous fruit decreased by 33.8% to 12,000 MT in volumes and by 37.3% to $4.5 million in value. The volume of apple exports fell to 11,700 MT (-34.8%) or $4 million (-39.5%). Export of pears, on the contrary, rose to 440.6 MT (+8.6%) and $371,000 (-3%). Last year, export of stone fruits grew up to 864,500 (+17.5%), worth $ 462,300 (-15.6%). At the same time, the export of berries increased by 47.9% in volumes to 305.5 MT and by 18% in value to $499,900.

In 2018, the main importers of Russian fruits were Belarus, Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan, Ukraine, China, Mongolia, Kyrgyzstan, Armenia, Latvia, Lithuania, Finland, and Estonia.

In 2018, the import of pomaceous fruit amounted to 1.1 million MT (+13.9%) and $726.6 million (+20.9%). The import of apples accounted for 845.400 MT (+19%), worth $518.3 million (+26.8%), pear import accounted for 272,900 TM (+0.6%) worth $202.2 million (+8.5%). The volume of stone fruit import amounted to 449,700 MT (+0.3%) and $430.7 million (+3.9%). Imports of berries increased by 45.6% in value to $101.5 million, while the volumes increased grew by 7.9% to 59,900 MT. Import pf grapes amounted for 295,700 MT (-22.8%) for $324.7 million (-18.3%).

www.a-ipp.ru

For the first time since 2017, RosStat recorded a monthly deflation in Russia

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In August 2019, consumer prices in Russia decreased by 0.2% compared to July, according to RosStat. The last time a monthly deflation was recorded in August and September 2017.

In August, food prices fell by 0.9%, while non-food products and services rose by 0.2%.

In August, the seasonal reduction in prices for fruits and vegetables influenced the food prices. Tomato prices fell by 24.9%, potatoes – by 22.4%, carrots – by 22.2%, onions – by 20.7%, beets – by 16.7%, grapes – by 16% , cucumbers – by 12.1%. Meanwhile, oranges prices increased by 2.8% and garlic – by 1.8%.

Year-to-August, inflation is 2.42% and year over year inflation rate is 4.33%

tass.ru

statbureau.org