Author Archives: CrispConsulting

New restrictions on the supply of Turkish fruit and vegetables will not cause prices increase in Russia

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According to Igor Artemyev, head of the Federal Antimonopoly Service, new restrictions on the supply of fruit and vegetables from Turkey will not cause prices increase in Russia.

“Everything that could affect food prices in Russia have already happened. Immediately after the introduction of sanctions and counter-sanctions prices rose by 200-300%, mostly due to the loss of supply channels. Now new channels are created. We import fruit and vegetables from Iran, Abkhazia, Armenia.  Two years ago we were in a vacuum, and now there is no vacuum”- said Igor Artemyev.

In the spring of 2016, Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) banned the import of some categories of plant products from Turkey for phytosanitary reasons. So, in March and April, the agency banned the import of Turkish pepper, eggplant and pomegranate. On May 16, they banned shipments of lettuce and iceberg lettuce from Turkey, on May 19 – squash and pumpkins.

Rosselkhoznadzor representatives said earlier that the list of prohibited goods could be expanded, including Chinese cabbage, lemons and grapefruits. But due to the readiness of Turkey to discuss the current situation, further restrictive measures have not yet accepted. On Wednesday, Sergei Dankvert, head of department, told reporters that as for now Rosselkhoznadzor has no plans to ban import of all fruits and vegetables from Turkey.

January 1, 2016, Russia imposed a ban on the import of a number of agricultural products from Turkey. The country can not export to Russia strawberries, oranges, tangerines, grapes, apples, pears, apricots, peaches, nectarines, plums, some vegetables.

www.fruit-inform.com

Russian retail is negotiating the supplies of fruits and vegetables from Uzbekistan

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The largest Russian retail chains are negotiating the supplies of fruits and vegetables from Uzbekistan. Magnit, Auchan, 6 sotok, Essen and others showed their interest in Uzbek fruits and vegetables.

After the visit of the President of Uzbekistan to Russia and negotiations with Vladimir Putin, a number of Russian companies sent the request for Uzbek fruit and vegetables.

According to the inner source, a long-terms agreements for 5 and 15 years are being negotiated.  Uzbek companies suggest one price for the year.

Long-term agreements will allow Uzbek companies to focus on the production of the necessary volumes of exports of agricultural products and form logistics. Distributional centers for logistics, storage, processing, export will be created in 11 regions of Uzbekistan. Fruit and vegetables will be supplied there from the fields, where they will be stored in refrigerators for further shipment to export or processed into finished products.

When the sanctions are over, Uzbek companies will have some advantages, for example, Turkish companies work separately, and Uzbek companies act as a united group, although a lot is to be done.

www.fruit-inform.com

How Russians deal with the recession

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May 10, the forecast for 2016-2019, made by the Ministry of Economy, was published. The Office proposes to limit the salaries of state employees in 2016-2017. Sergei Naryshkin, State Duma Speaker, said that deputies may not support the limitation of salaries. Dmitry Peskov, spokesman of the Russian president, said that the Kremlin has no clear position on the proposals of the Ministry of Economy. How has the recession already affected the lives of Russians?

According to the research by the Institute of Social Analysis and Forecasting, for the first time in eight years Russians spent more than half of income, 50.1%, on food products.

In 2015, the real wages of Russians decreased by 9.5%, forcing them to revise their spending, as well as the budget for the vacation.

Russians also began cutting spending money on entertainment and eating out. For example, according to Nielsen study of September 2015, 49% of respondents admitted that they had not been in bars since the beginning of the year. The number of people who ear out at least once a month, has decreased by 10% on average.

According to the latest opinion poll, published on May 10, 1% of the respondents said that the situation in the country was great, 11% said it was good.

Business in crisis

British consulting company Global Counsel  published a report in late 2015 which stated that in 2016 Russia would leave many global companies. The conclusion was based on analysis of financial statements of 46 companies, including BP, Royal Dutch Shell, Deutsche Bank, Siemens, Lafarge.

The recession was the hardest for retail companies, especially in the middle segment. In 2015, many brands had to leave the Russian market, including American Eagle, River Island, Esprit, New Look, Finnish department store Stockmann, that was on the market since 1989. In 2014, the company’s losses amounted to €26 million.

Sales grew mainly in the low price segment. This is clearly seen in the fast food market: in 2015, leaders were KFC, Burger King and McDonald `s.

According to the Association of European Businesses (AEB), in 2015, sales of cars in Russia fell by 35.7% to 1.601 million vehicles. Some car brands had to leave the country, such as Opel, Honda, Seat. Chevrolet stopped selling most car models.

www.retailer.ru

Egyptian export figures to Russia

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The Egyptian export of fruit to Russia amounted to 183.59 million dollar last year. That is equal to 44 per cent of total Egyptian export to Russia. The main products were oranges, grapes and strawberries. Vegetable export amounted to 165.99 million dollars, or 40 per cent of Egyptian export to Russia. The main products were potatoes, onions, garlic and tomatoes.

Russian investments in Egypt are estimated at 62.77 million dollar. There are 408 Russian companies involved. With these figures, Russia is in 47th place of the largest investors in Egypt.

www.freshplaza.com

French parliament votes against sanctions

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French parliament debated about the extension of European sanctions against Russia. Voting indicated that a majority is opposed to the sanctions. The centre right party that requested the debate carried a motion to stop the sanctions. The French parliament only had indirect influence on the decision. European heads of government have to decide on the sanctions next month.

www.freshplaza.com

Russia lowers import tariffs

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According to Russian media, the country will lower the import tariffs for pistachios and dried fruit to a zero-tariff. At the end of May, import levies on broccoli, cauliflower and sprouts will also be lowered. Cultivation of these vegetables is difficult in the Russian climate. The main trade partners for dried fruit are Tadzhikistan, Uzbekistan, Iran, Turkey, Chile and Argentina.

www.freshplaza.com

Morocco profits from boycott

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Morocco profits the most from the Russian boycott of Turkish fruits and vegetables, according to Russian media. According to reports, the North African country is the most important supplier of tomatoes and oranges. The country supposedly has a market share of 55.6 per cent in citrus, 30.2 per cent in vegetables and 25.7 per cent specifically in tomatoes.

www.freshplaza.com

 

Fruit prices in Russia have increased almost by 60% for 2 years

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According to Rosstat prices for fruit in Russia have risen by 59.2 per cent since the boycott. Between July 2014 and March 2016, when the sanctions were imposed, fruit prices have risen by nearly 60 per cent. Prices for vegetables and frozen fish have also risen. The largest increase in prices was registered during the first months after the boycott was introduced. Prices have stabilised for now.

www.freshplaza.com

Demand for organic stagnates in Russia

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Demand for organic stagnates in Russia. While global demand for organic products is growing, demand in Russia is stagnating. The volume of organic products came to 10,800 tonnes in Russia. This is comparable with the volume of 2014. That year demand for organic products rose by 4.9 per cent. Despite the trend in healthy food, demand for organic products is stagnating.

www.freshplaza.com