Author Archives: CrispConsulting

Russian companies are interested in fresh fruit and vegetables from Turkey

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The West Mediterranean Exporters Association (BAIB) reported that they had received their first order of fresh fruit and vegetables from Russia after attending the WorldFood Moscow Exhibition, organised between the 12th and 15th September.

In August, Russian President Vladimir Putin and Turkish President Recep Tayip Erdogan re-established normal relations between the two countries, putting an end to a year of hostility, although the ban on import of some fruits and vegetables to Russian from Turkey has not been lifted yet.

BAIB president, Mustafa Satıcı, stated that they had attended the WorldFood Exhibition to raise awareness of Turkish produce as the fresh fruit and vegetable sector recovers and sanctions on Turkish exports are lifted.

Satıcı added that Russian companies had shown an interest in a wide range of fruit and vegetables including tomatoes, peppers, courgettes, pomegranates, oranges and lettuce.

www.freshplaza.com

EU acts to limit scope of Russian ban

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The European Commission is to take action to stop Russia from blocking overland shipments of Spanish fruit bound for China.

The announcement comes in response to complaints raised by Murcian MEP Ramón Luis Valcárcel that Russia’s actions go well beyond its embargo on imports of agricultural products from the European Union.

The Commission said it would employ every means at its disposal to force Russia to comply with WTO rules on the free movement of goods, including taking legal action if necessary.

The Commission has asked the Russian authorities for clarification on the terms of the veto on several occasions since it came into effect in August 2014, but their response has been “very ambiguous”.

Moscow claims its interpretation of the scope of the embargo is based on various pieces of national legislation, including the Customs Code of the Eurasian Economic Union.

Russia’s obstructions have led the Commission to explore alternative routes to the Chinese market. It is currently in discussions with the Ukrainian government, which is developing a transport itinerary with other countries in the Southern Caucasus and Central Asian region.

www.fruitnet.com

Import temporary suspension of Egyptian fruit and vegetables to Russia starts on September 22

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Russia announced a temporary suspension of imports of fruit and vegetables from Egypt beginning on September 22.

Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) did not disclose a full list of products that would be banned, but is is said that the list included citrus, tomato and potato. The official reason for the ban is “systematic breach of international and phytosanitary requirements” in “massive supplies” of Egyptian fruit and vegetables shipped to Russia.

Russia is one of Egypt’s top export markets for fruit. It sold some $350 million in agricultural commodities last year to Russia, including 400,000 MT of oranges, or 30% of its total orange exports, the trade ministry statement said.

Russia’s decision to suspend imports of fruit and vegetables from Egypt is not a counter-measure against Cairo’s rejection of Russia’s wheat, Interfax news agency quoted Russian Deputy Prime Minister Arkady Dvorkovich as saying on Tuesday. Before that Egypt rejected 60,000 MT wheat shipment from Russia due to issues with ergot fungus.

The ban will have no impact on Russia’s inflation, Dvorkovich said, according to TASS and RIA news agencies.

www.reuters.com, www.reuters.com, www.fruitnet.com

EU renews Ukraine-related sanctions against Russia

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The European Union is extending for six months the sanctions targeting people and entities involved in what the EU considers Russia’s illegal annexation of Crimea from Ukraine. The extension, officially announced Thursday, consists of an asset freeze and a ban on EU travel, and affects 146 individuals and 37 entities.

The measures, originally introduced in 2014, were last extended in March, the EU said in a statement. The latest action endorsed by representatives from the 28 EU member states means the punitive measures can remain in force through March 15, 2017.

On September 1, the United States has added 37 individuals and entities to its sanctions blacklist aimed at Russia over its continuing support for separatists in eastern Ukraine and the 2014 annexation of the Crimean Peninsula. The United States blacklisted a number of Russian companies operating in Crimea, including construction firms Mostotrest and SGM-Most which have been helping to build a bridge from Russia to the peninsula. Six separatist representatives in eastern Ukraine and 11 officials in Crimea were also sanctioned.

www.foxnews.com, www.rferl.org

Azerbaijani companies to supply major Russian food retailer

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X5 Retail Group, Russia’s second largest food retailer, will receive produce directly from member companies of the Azerbaijan Fruit and Vegetables Producers and Exporters Association (AMTIIA ), the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) reported.

The decision was taken within the framework of AMTIIA’s meeting with representatives of X5 Retail Group. The sides discussed the direction of mutually beneficial cooperation and took a decision on the direct export of fruit and vegetables to the Russian market.

Headquartered in Moscow, X5 Retail Group operates such trade networks as Pyaterochka, Perekrestok, and Karusel.

The newly-established AMTIIA is responsible for boosting Azerbaijan’s export potential in the fruit and vegetable sector as well as increasing overall production levels.

Currently, some 14 Azerbaijani companies are allowed to export their agro-production to the Russian market.

The northern neighbor is still one of the main trade partners of Azerbaijan, which has long had a well-established place on the Russian market. The country currently ranks fifth in Russia’s foreign trade with the CIS countries (following Belarus, Kazakhstan, Ukraine and Uzbekistan).

The trade turnover between Azerbaijan and Russia amounted to $1.06 billion in January to July 2016, while some $212.9 million of the figure accounted for the export to this country.

www.freshplaza.com

Russian producers against Iranian fruit and veg imports

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Russian fruit and vegetable producers have showed their opposition to the import of tomatoes, cucumbers, potatoes and carrots from Iran under a simplified customs procedure with reduced duties. In the first half of 2017, a free trade zone between Iran and the Eurasian Economic Union, which includes Russia, is expected to come into force.

Back in June, it was revealed that Russia may create a temporary free trade area (FTA) with Iran in the first half of 2017, lasting until 2020, leading to a reduction of customs duties for Iranian goods. A list has subsequently been prepared that features all products whose supply to Russia is a priority for Iran.

This list includes cucumbers and gherkins, tomatoes, potatoes, peppers and other vegetables; canned tomatoes, fresh garlic, onions, shallots, apples, trout, dry milk, meat, chicken and offal, oil palm substitutes for ocoa butter, white sugar, chewing gum and apple juice.

However, the Ministry of Agriculture, which has carried out a risk analysis on the impact of an increase in the import of certain categories of goods from Iran, has been asked by the National Union of fruit and vegetable producers to withdraw tomatoes, cucumbers, potatoes and carrots from the free trade regime.

The Association emphasizes that, in the framework of the state programme for the development of domestic agriculture, producers are facing many challenges, starting with the construction of about 1.3 thousand hectares of modern greenhouses up until 2020.

They recall that the programme was launched in 2013. According to the National Union of producers of fruits and vegetables, the construction of these greenhouses started in an area of 100 hectares at a cost of 20 billion roubles.

The viability of these modern greenhouse complexes will rely on the seasonal prices for the products in autumn and spring. In the summer, producers have been operating at a loss and selling their products below cost, and “shipments of imported products grown in milder climates have a direct impact on prices,” stated the producers.

According to the Association, the production of potatoes and carrots is currently actively developing in Russia. For example, potato production in 2015 amounted to 7.6 million tonnes and increased by 22% compared to 2014; meanwhile, the carrot production amounted to 713 thousand tonnes in 2015, 25% up compared to 2014. “This increase is due to the introduction of modern technologies of cultivation and storage, which requires a considerable investment by agricultural producers,” said the Association of Producers in a letter.

Import of fish and seafood to Russia decreased by 12% during 7 month of 2016

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According to preliminary data from the Russian Statistics Service, during seven months of 2016, the volumes of imports of fish products to the Russian Federation decreased by 12% (37,000 MT) compared to the same period of 2015 and amounted to 271,600 MT. Import of frozen capelin decreased by 67.9% – to 8,600 MT, import of frozen herring deceased by 50.2% – to 11,700 MT, import of frozen salmon deceased by 3.3% – to 25,300 MT, import of frozen mackerel dropped by 28.2% – to 31,800 tons. Meanwhile import of frozen trout almost doubled – up to 6,800 MT.

The structure of imports of fish and seafood to Russia consists of frozen fish (54.5%), prepared or preserved fish products (14.4%), fish fillets and other fish meat (11.2%), crustaceans, molluscs and other aquatic invertebrates (11%), fresh or chilled fish (4.5%).

www.fish.gov.ru

Russia imported 1.5 million tons produce less during first half of 2016

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Russian import of fresh fruits and vegetables decreased sharply during the first half of this year. During the first half of 2015, 20 per cent less was imported already, due to the import ban implemented in August 2014. This year it was another 16 per cent less. In total, due to the boycott of import from the EU and a number of other countries, one-third less fresh fruits and vegetables were imported during the first half of this year. This amounts to at least 1.5 million tons.

The boycott of Turkey was added this year. Poland and Turkey are most affected by the boycott. From January to June this year, 500,000 tons less fresh produce was imported in Russia from both countries compared with the first half of 2014. Compared with last year, losses for Turkey were even bigger. The import ban was not yet in effect for that country then, it was implemented 1 January of this year.

The Netherlands and Spain exported about 175,000 tons of fresh produce just before the boycott during the first half of 2014. Belgium was also an important supplier for Russia before the boycott.

It is striking that import from a number of countries not affected by the boycott also decreased sharply during the first half of 2016. Some examples are Israel (64,000 tons less than in Jan-Jun 2014), China (35,000 tons less), Morocco (34,000 tons less) and Argentina (27,000 tons less). It should be noted for Morocco that during the first half of this year a recovery was noticeable compared to the first half of last year.

After implementing the boycott a lot of fresh produce was imported by Russia via Belarus. This amounted to at least 1.1 million tons for all of 2015. The results of the boycott were less severe because of that. During the first half of 2016, the amount of import in Russia via Belarus sharply decreased. In total, 290,000 tons, compared to 600,000 tons in the first half of 2015, was imported by Russia from January to June this year. Mostly apples, pears and tomatoes were sent to Russia via Belarus during the first half of the year.

Egypt profited most from the boycott. During the first half of 2016, 360,000 tons of fresh produce were imported from Egypt. That is nearly 100,000 tons more than in 2014. The products imported most were oranges and onions. Serbia also profited from the boycott. Apples were imported either from or via Serbia, for the most part. The other countries profiting from the boycott are mostly former Soviet republics.

Interestingly, the import of the most important import product, bananas, reached record sizes during the first half of this year. From January to June, at least 745,000 tons of bananas were imported. These come almost exclusively from Ecuador. The second import product was apples during the first half of 2016. Import only amounted to 360,000 tons, compared with 860,000 tons during the first half of 2013, and 740,000 tons during the first half of 2014. During the first half of this year, 325,000 tons of tomatoes were imported, compared to 600,000 tons before the boycott was implemented. The import of pears decreased from 360,000 tons during the first half of 2014 to 150,000 tons during the same period this year. The decrease of oranges remained limited. Other products whose decrease remained limited, or which even increased, were grapefruit, sweet cherries, garlic, apricots and plums.

www.freshplaza.com

Apples from Moldova may do harm to apple growers from Krasnodar region

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Growers from Krasnodar region, South Russia, estimate the loss of 2 billion rubles due to competition with Moldovan apple suppliers until the end of the year. In the end of July, Moldovan suppliers began importing apples and plums to Russia and they are cheaper than Russian ones. Domestic producers turned for help to the Russian Ministry of Agriculture. However, experts believe that the request to ban the import is unlikely to be satisfied.

22 July, Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) allowed 43 Moldovan companies to export their produce to the Russian market, and the produce is cheaper than the Russian one. As a result, domestic production remains unclaimed. So, the price of a Russian plum fell from 12-14 rubles per 1 kg to 5-7 rubles per 1 kg.

According to the Union officials, over the past two weeks growers only from Krasnodar region lost more than 120 million rubles. And the total losses of fruit growers from Krasnodar region are estimated to be more than 2 billion rubles till the end of the year.

At the same time, growers from Krasnodar region believe that so far they have successfully contributed to import substitution program. For example, according to their data, they have increased domestic production of seedlings of fruit crops by 2.7 times, and fruit production has increased by 45.2% over the past five years.

Rosselkhoznadzor said that it would be impossible to ban the import of Moldovan plums and apples now without any risks of biological kind. In the summer of 2014, Rosselkhoznadzor banned imports of vegetables and fruits from Moldova because they did not match Russian phytosanitary requirements. In mid-2015, the import was renewed on a trial basis, and the number of companies authorized to ship products to the Russian market, is gradually increased. In March 2016, Rosselkhoznadzor temporarily suspended imports of vegetables and fruits with the Moldovan phytosanitary certificates via Belarus to the Russian market because of the suspicion of re-exports of apples and pears from the European Union.

In 2015, Moldova exported to Russia 42,000 MT of apples, according to the Federal Customs Service. The total import of apples to Russia was 890,000 MT. Domestic production was about 600 000 MT in 2015. As for plums, Moldova takes the second place – 13,000 MT, the total import of plums to Russia was 60,000 tons, while Russia produced only 6,000 -7,000 MT.

www.retailer.ru

62% of Ukrainian apples exports shipped to Belarus

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According to a marketing research “Apple market in Ukraine”, conducted by Alliance Capital Management, the biggest volumes of apples imported from Ukraine – 62% – were shipped to Belarus in the first half of 2016.

Georgia takes the second place – 11% of Ukrainian apple exports. It is followed by Moldova – 10% and Kazakhstan – 9%.

Belarus also imported the cheapest Ukrainian apples in the first half of 2016.

At the same time, Belarus successfully exports apples. In 2014, export of apples to Russia from Belarus increased by 104% up to 175 thousand tons, at the end of 2015 it increased already by 134% and reached 411 thousand tons.

According to Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor), the export of apples from Belarus has increased by five times after Moscow has introduced counter-sanctions. At the same time, the Federal Customs Service of the Russian Federation believes that this is a re-export of Polish apples, which are prohibited for import into Russia.

www.charter97.org