Author Archives: CrispConsulting

Russia Became World’s Second Largest Banana Importer Last Year

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In 2017, fresh fruit and vegetable imports into Russia grew by 17% compared to the previous year and amounted to 7.1 million MT. Of this volume, 22% corresponded to bananas, 20% to citrus fruits, 10% to apples and 7% to tomatoes. Last year, Russia became the world’s second-largest banana importer (1.5 million MT), losing first place to the US and overtaking Germany. Also, there was a significant increase in the supply of mandarins, watermelons, celery and avocados.

The agency’s experts associate the growth of imports with the lifting of restrictions on the import of Turkish products, a record import of Ecuadorian bananas, and the establishment of relations with China, Egypt, Azerbaijan and Moldova.

The largest supplier of fresh fruits and vegetables last year was Ecuador, which accounted for 21% of the total volume of Russian imports in this category. Almost all imports from this country consisted of bananas, which, according to the FCS, stood at 1.4 million MT; 11% more than a year earlier. The second largest supplier was Turkey, which accounts for 14% of all Russian fresh fruit and vegetable imports. In fact, Russia absorbs one third of Turkey’s total fruit and vegetable exports. According to the Federal Customs Service, Turkey’s most important export product in 2017 was citrus fruits, with almost 600 thousand MT shipped, mainly in the fourth quarter of 2017. The Russian market also purchased Turkish grapes, peaches, nectarines and apricots.

In third place was China, whose share is 10%. The most important Chinese products were tomatoes, with sales volumes increasing by 26%, to 109 thousand MT, as well as apples (with a 13% drop, down to 100 thousand tonnes). China also supplied onions, mandarins, cabbage, grapefruit, bell peppers, carrots and pears. As noted earlier by the press service of the FCS, the physical volume vegetable imports from China increased by an average of 1.4 times.

Imports from Belarus, which ranked fourth, dropped to 540 thousand MT, compared to 630 thousand MT in 2016 and 1.1 million MT in 2015. The main Belorussian products exported were peaches and nectarines (88,000 MT), tomatoes (70,000 MT), pears (77,000 MT), potatoes (51,000 MT) and apples (47,000 MT).

www.freshplaza.com

EU Prolongs Sanctions against Russia until 15 September 2018

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On 12 March 2018, the Council prolonged the restrictive measures over actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine for a further six months, until 15 September 2018. The measures consist of asset freezes and travel restrictions. They continue to apply to 150 persons and 38 entities.

An assessment of the situation did not justify a change in the sanctions regime. The relevant information and statement of reasons for the listing of these persons and entities were updated as necessary.

The legal acts will available in the EU Official Journal of 13 March 2018.

Other EU measures in place in response to the Ukraine crisis include:

  • economic sanctions targeting specific sectors of the Russian economy, currently in place until 31 July 2018;
  • restrictive measures in response to the illegal annexation of Crimea and Sevastopol, limited to the territory of Crimea and Sevastopol, currently in place until 23 June 2018.

www.consilium.europa.eu

Putin: Import Substitution in Russia is Temporary Phenomenon

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The import substitution in Russia is a temporary phenomenon, a temporary tool for adjusting the current situation, President Vladimir Putin said on Wednesday.

“The idea of import substitution itself is not universal and is not what we should strive for in the long run, because import substitution should not undermine competition. This is an extremely important thing,” Putin said at a meeting with women entrepreneurs.

“We should understand, that all this import substitution is a temporary phenomenon. I want you to understand this. This is a temporary tool to adjust to the current situation,” he stressed.

“We should aim at producing such products of such quality and at such a price that it is competitive not on our own, but on the world market,” Putin added.

According to him, import substitution is primarily related to ensuring the security of the country, for example, in the defense industry. As an example Putin mentioned the fact that Russia has begun to produce marine engines, engines for helicopters, and this is being done compulsorily.

“In some cases we did it and are doing it to support the domestic producer in difficult economic conditions, especially in the situation when our partners violate and distort competition by imposing different sanctions, which are politically motivated, as they claim, but in fact are based on the ambition to gain an advantage,” he added.

www.tass.com

Azerbaijan: the Main Tomato Supplier to Russia in 2017

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Russian media, the citing Federal Customs Committee, reported that Azerbaijan was the leading tomato exporter to Russia in 2017.

Azerbaijan increased its export volume by 50 percent to 151,000 MT (worth some $151 million dollars). Azerbaijan’s share in the Russian tomato import increased from 22 percent in 2016 to 30 percent in 2017.

According to en.trend.az, Russia accounted for 99.8 percent of Azerbaijan’s total tomato export in 2017. China held the second place with 109,000 MT (a 26 percent year-on-year increase). Morocco went down to the third place (from the first place it held in 2016). The country’s share correspondingly decreased to 23 percent with 97,000 MT. Belarus with 70,000 MT and Iran with 9,000 MT also entered the Top 5.

www.freshplaza.com

Russian fruit and vegetable imports partially recovered

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When compared to the previous year, Russian imports of fresh fruit and vegetables have increased considerably over the last year. A total of 7,1 million MT was imported, 17% more than in 2016. It is, however, not nearly as much as in 2013. In the year before the boycott came into force, Russia imported almost 8,5 million MT of fresh fruit and vegetables.

The (partial) recovery of the imports is, firstly, due to the boycott of various Turkish products being lifted in 2017. In addition, a record volume of (Ecuadorian) bananas and products from other countries were imported. The most important of these countries are China, Egypt, Azerbaijan, and Moldova. The record volume of banana imports is particularly noticeable. Last year, Russia surpassed Germany and is now the second largest importer of bananas in the world, besides the United States. Russia also imported a record volume of mandarins, it’s second most popular import product. Russia is by far this product’s most important import country. Russia’s import volumes of all other regularly consumed products also rose in 2017. This country’s import volumes of lesser-known products, such as kaki, garlic, watermelon, celery, avocado, and mangoes, also reached record highs in the past year. (more…)

Food Imports Increased in 2017 Pushed by Fruit and Veg Purchases

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The import of food into Russia increased by 6% in 2017, according to data from the Federal Customs Service.

There hadn’t been growth for several years. After the collapse of the rouble and the introduction of the import ban in 2014, the import of products had been greatly reduced. In 2016, the country imported 20% less food than two years earlier.

The main reason why this trend is changing is due to the fact that Russia has been importing more fruit and vegetables.

“The import of fruit has grown due to the greater volumes of cherries and grapes from Turkey, bananas from Ecuador or citrus fruits from South Africa,” explained the Federal Customs Service.

Besides, several countries which are not subject to sanctions have also increased the sale of vegetables to Russia.

Experts say that the stronger rouble is also helping boost imports. The cost of foreign products is declining, and consumption is increasing. This indicates that foreign vegetables are not being replaced by domestic ones, but that people have been eating more vegetables and fruits, so suppliers have been buying more.

www.freshplaza.com

Ingredients Russia 2018

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Ingredients Russia

February 27 – March 2, 2018

Crocus Expo, Moscow, Russia

Ingredients Russia is a specialised exhibition for ingredients suppliers and consumers from around the world.

For the past sixteen years, the Ingredients Russia exhibition has reflected trends in the industry. Developers, manufacturers and suppliers of raw materials and ingredients for the food industry prepare innovative products specifically for presentation at the exhibition.

More than 7000 industry professionals visit the exhibition in search of new ingredients to improve product quality, create new products, and improve production cost-effectiveness.

For more information see: www.ingred.ru

Russian Apple Production is a Long Way From Self Sufficiency

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Despite efforts to become self-sufficient in apple production after the embargo, recent figures confirm that the country is far from being able to produce enough apples to meet domestic consumption.

According to the Ministry of Health, the average Russian consumes 50 kg of apples per year, yet, according to AB-Center, recent total production would only amounts to 5.8 kg per year per consumer. This amount includes all apples, including those for processing, so when it comes to the amount of apples for fresh consumption, the amount per person would fall even lower.

Although it seems like self-sufficiency is far from a reality, Rosstat has estimated that the total production of top fruits, a majority of these being apples, did grow by 15% in 2016. In addition, independent experts have reported that the share of imported products on shelves has, for the first time in many years, given way to Russian apples.

Although apple imports have decreased since the embargo, a recent report from UN Comtrade said that Russia is still number 3 on the list of largest apple importers in the world in 2016, with a share of 6%, totalling 678,600 mt of fresh apples. This amount had already reached 622,200 mt in the first 11 months of 2017.

In the first half of 2017, the majority of apple imports were coming in from Serbia and Moldova, with 32.1% and 26.2%, respectively. Other major suppliers include China, Belarus, Chile, Azerbaijan, South Africa and New Zealand. Bosnia and Herzegovina had also been a significant apple importer to Russia, but this is currently on hold after Rosselkhoznadzor placed a ban on the country following suspicions that they were exporting apples from Poland as their own.

www.freshplaza.com

Agricultural Watchdog Allows Five More Turkish Enterprises to Supply Tomatoes to Russia

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Russian agricultural watchdog Rosselkhoznadzor has allowed five more Turkish enterprises to supply tomatoes to Russia from February 1, 2018, the regulator said in a press release.The permission was granted under the guarantee of the Turkish Ministry of Food, Agriculture and Livestock.

Experts of Rosselkhoznadzor inspected those enterprises in December 2017. “The Federal Service for Veterinary and Phytosanitary Control informs that from February 1, 2018, under the guarantees of Turkey’s Ministry of Food, Agriculture and Livestock, it allowed five more enterprises to import tomatoes of the Turkish origin into the territory of the Russian Federation,” the ministry said.

Russia imposed a ban on imports of a number of farming products from Turkey from January 1, 2016 following the November 2015 incident with a Russian Su-24 fighter jet that was downed Turkish warplanes while returning from an anti-terrorism mission in Syria.

In November 2017, Russia allowed imports of up to 50,000 tonnes of tomatoes from Turkey. So far only three Turkish suppliers have been granted permits to supply tomatoes to Russia. The first shipment of tomatoes was delivered in mid-November 2017.

www.tass.com

Beviale Moscow 2018

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Beviale Moscow 2018

February 27 – March 1, 2018

Crocus Expo, Moscow

The third international trade fair in Russia covering the entire beverage production and marketing value chain takes place from 6 to 8 October 2015 in the form of Beviale Moscow. As an offshoot of the BrauBeviale exhibition in Nuremberg, it is taking the successful Beviale family recipe to the Russian market. Internationally renowned exhibitors will be devising innovative, locally adapted solutions through direct communication with Russian customers.

For more information see: www.beviale-moscow.com