Author Archives: CrispConsulting

Russian apple prices lower year-on-year

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The Russian apple market participants say about stagnation in the sector.

For the present, many apple growers have already finished their season. Still selling farmers do not revise prices in view of stably low demand for apples and often low quality of offered produce.

As a result, growers’ apple prices vary between RUB 15-30/kg (EUR 0.27-0.55/kg), depending on quality and production region. It should be reminded that in the mid-March 2013 domestic apples were offered at RUB 0.31/kg and higher.

As regards imported apples, the demand for them also remains extremely low, and prices are still stable.

www.fruit-inform.com

InterFood Krasnodar 2014

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InterFood Krasnodar 2014

April 16-18, 2014

Krasnodar, Russia

InterFood Krasnodar is a key business platform and a venue for leading Russian and international producers to showcase their food products. All the achievements of the industry will be on display at the event, helping it to play a major role in promoting quality food products in Southern Russia.

InterFood takes place alongside four other specialised food events: Food Industry Krasnodar for food equipment and packaging, Vinorus.Vinotech for wine and winemaking equipment, Kubanprodexpo for Krasnodar-based producers, and Profitable Hospitality for catering and hospitality equipment and technology.

InterFood Krasnodar is a discussion platform for professionals of the food industry. The multiple exhibitions on related topics complement each other by strengthening inter-industry links and giving a clear insight into the developments of Southern Russia’s agricultural sector.

For more information see: www.inter-food.su

Food Industry 2014

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Food Industry 2014

April 16-18, 2014

Krasnodar, Russia

Food Industry is an important specialized business platform at the South of Russia presenting domestic and foreign equipment for food and processing manufactures, raw materials and ingredients. The distinctive feature of the exhibition is the complex approach to presentation of industry achievements – from foodstuffs to technologies and production equipment.

The exposition is divided into two main sections: “Food Technologies” and “Packaging”. The first one shows a wide spectrum of food and processing equipment, control systems, spare parts and consumables, components, ingredients and raw materials for food production.

“Packaging” presents new kinds of packing and label products, packing materials and equipment, ready packing products, consumables for label production, equipment for labeling.

For more information see: www.foodexpo.su

Possible ban from Russia big problem for EU exporters

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With Russia being a large importer of fresh produce, the current political situation between European nations and Russia could have significant ramifications for European exporters. The threat that the political climate could negatively impact their business has many European shippers hoping for a quick resolution to any political issues EU countries and Russia may have.

“If Russia bans any European produce, then it’s obvious that this will be a big problem for exporters currently working with Russia,” said Eric Guasch, President of AFRAA, an organization dedicated to promoting trade between the two nations. AFRAA is already working to lift the Russian ban on European potatoes and pork, and any further restrictions on European products would further hurt the continent’s shippers.

As for Israeli exporters, any action taken by Russia would only have an impact on some commodities, explained Rafi Zuri of Galil Export in Israel.Also Spanish kaki fruit from Spain would suffer, which will probably be a benefit for Sharon  fruit from Israel in winter, as they compete on persimmon during the winter. Other commodities wouldn’t have an advantage. Part of that has to do with the competition Israeli exporters face from Turkish exporters. Because products from Turkey are cheaper, and the Russian market prioritizes low-priced produce.

But throughout most of Europe, worries are much more prevalent, and the feeling is that any ban would eventually hurt Russia as well as Europe. Because of the potential impacts the current situation could unleash on those working in the fresh produce trade in both countries, everyone hopes political tensions can be resolved quickly.

www.freshplaza.com

Siberian food products. Packing. Equipment 2014

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Siberian food products. Packing. Equipment 2014

April 15-18, 2014

Irkutsk, Russia

The XX “Siberian food products. Packing. Equipment” Specialised Exhibition will be held on April 15 —  18, 2014 in Sibexpocentre Irkutsk Exhibition Complex.

The exhibition is organised by Sibexpocentre OJSC with official assistance of the Government of Irkutsk Region, Administration of Irkutsk, East Siberian Chamber of Commerce and Industry, “Partnership of Producers and Entrepreneurs” Irkutsk Regional Association of Employers, Non-Profit Enterprises Partnership of Food and Processing Industries.

More than 60 companies from Irkutsk Region, Krasnoyarsk, Novosibirsk, Barnaul, Tomsk, Buryatia, Moscow and Moscow Region and other regions of Russia, as well as from Bulgaria will be presented at the exhibition area of 2000 sq.m.

Russian and regional food producers will present meat and sausage products, meat pack, dairy products, cheese, oil products, fish, fish pack, vegetable products, baked goods and beekeeping products. People will be able to see modern equipment for enterprisers of food services, retail equipment and techniques for automation of trade, bakers’ machinery, as well as package and label.

For more information see: www.siberian_food_produc.sibexpo.ru

Slowdown in Pyaterochka refurbishment process

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The X5 Retail Group, a prominent grocery retailer, has announced that the total number of Pyaterochkadiscounters to be refurbished this year will be less than previously planned. This is because the project has proven to be more challenging than the company had estimated.

The retailer had planned to revamp 1,100 stores in 2014 and to complete the refurbishment of the entire chain by the end of 2015. The average cost of reformatting one establishment is $360,000 (€259,000). In October 2013 X5 planned to spend between $160m and $440m (€115-317m) on this over 18 months.

At the end of last year, X5 was operating 4,544 stores in total. These included 3,822 Pyaterochka discounters, 390 Perekrestok supermarkets, 83 Karusel hypermarkets, and 189 differently branded express stores.

www.ceeretail.com

Russian Ruble Devaluation March 2014

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The Russian ruble has hit five-year lows against the Central Bank’s foreign currency basket of dollars and euros – a politically worrying trend for the Kremlin because of the accompanying rise in the cost of living.

As for March 13, it stands at 36.45 against the dollar and 50.80 against the euro, rates are even higher than in months of Russia’s 2008-2009 financial crisis; in February 2009 it was 35,81 against the dollar.

The growth since the beginning of January has been already more than 20%.

Picture shows the fluctuations of the Russian ruble since 1998 to March 2014.

 

Sources: www.bloomberg.com, www.dawn.com, www.cbr.ru

Apple holdings down 3%

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About 61.5 million bushels of U.S. fresh market apples had yet to be shipped as of March 1, 3% less than last year at the same time.

The March 1 total is, however, 6% above the 5-year average of 58.2 million bushels, according to the March Market News report from the Vienna, Va.-based U.S. Apple Association.

Washington accounted for 53.1 million bushels of the U.S. total still in storage on March 1. Michigan had 3.9 million bushels, New York 3.3 million bushels and Pennsylvania 762,000 bushels.

Volumes of red delicious, galas, fujis, golden delicious and Pink Lady were down from last year.

Red delicious holdings fell from 23.9 million to 21.2 million bushels; galas from 9.6 million to 9.3 million bushels; fujis from 9.9 million to 6 million bushels; golden delicious from 7.4 million to 6.5 million bushels; and Pink Lady from 1.95 million to 1.9 million bushels.

Volumes of granny smiths increased, from 6.6 million to 8.5 million bushels.

www.thepacker.com

Selgros comes to Volgograd

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Selgros, a grocery wholesaler, entered the local Volgograd market by opening a cash and carry hypermarket in Marshala Yeremenko Street on 6 March 2014. The outlet offers a range of more than 40,000 food and non-food SKUs and operates on a trading space of 8,500 m2. The amount invested in the project was RUB 1bn (€19.8m).

In addition to the new store in Volgograd, there are seven Selgros hypermarkets in Russia: in Altufyevo, Kotelniki, Vnukovo and Biryulevo (all four are Moscow’s districts) and in Rostov-on-Don, Kazan and Ryazan.

www.ceeretail.com

Metro IPO plans in doubt due to Ukraine crisis

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The stock valuation of German hypermarket chain Metro has taken a heavy hit over the past week, and the retailer’s plans to launch an initial-public-offering of its Russian unit has been thrown into doubt due to the fallout of the current situation in Ukraine.

Over the weekend, Metro shares fell by over 5% in early trading on the German mid-cap stock exchange to €28.50.

Metro had hoped to raise around €1 billion by selling 25% of its stake in its Russia cash-and-carry unit in a London listing but due to Russia’s involvement in the political chaos surrounding Ukraine, details of the group’s plans aren’t currently clear.

A Metro spokesperson said it would “monitor the situation in Ukraine closely” because market conditions need to be favourable in order to launch an IPO.

Metro planned to use the proceeds from the IPO to expand its cash-and-carry business in Russia, its most profitable unit and the country’s fourth-biggest retailer behind X5, Magnit (MGNTq.L) and French chain Auchan.

Metro operates 72 stores in Russia and achieved sales of 183 billion roubles in 2013.

www.freshplaza.com