Author Archives: CrispConsulting

Russia significantly reduces pear imports

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According to Federal State Statistics Service of the Russian Federation, Russia imported 364,000 tons of pears in the season 2012/13, a decrease of 15% from the previous season and the lowest result over the past 4 seasons. For comparison, pear imports in the season 2011/12 reached record high 426,000 tons.

The peak of imports was registered in March-April. Argentina was the largest exporter of pears to the Russian Federation with the share of 30%. The Netherlands, Belgium, Poland and China also exported significant volumes.

Source: www.fruit-inform.com

Ukraine loses ground in Russian apple market

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Ukraine has been reducing apple exports to the Russian Federation for the fourth season in a row. Despite high production in the season 2012/13, Ukraine exported just 17,000 tons of apples to Russia, a decrease of 32% year-on-year and the lowest result ever. For comparison, Russian importers purchased 25,000 tons of Ukrainian apples in the season 2011/12.

Ukraine’s apple exports fell due to Russia’s accession to the WTO, which had led to lower import duties on European produce. In connection with that, Ukrainian apples’ competitiveness in the Russian market has sharply decreased.

In such a way, Ukraine ranked just tenth in Russia’s total apple imports in the season 2012/13. The Russian Federation still remains the main export market for Ukrainian apple suppliers.

Source: www.fruit-inform.com

China keeps on reducing apple exports to Russia

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China continues to reduce apple exports to the Russian Federation, according to the official statistics.

Russia imported just 118,000 tons of Chinese apples in the season 2012/13, a decrease of 9% year-on-year. For comparison, in the season 2011/12 China’s apple exports to the Russian Federation reached 129,000 tons. Over the past five years, Russia’s imports of apples from China have fallen by 41%.

However, despite lower exports, China has ranked third in apple exports to Russia for the third year in a row.

Source: www.fruit-inform.com

A decrease of 25% in Uzbekistan’s grape exports to Russia

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Uzbekistan reduced grape exports to the Russian Federation by a quarter in the season 2012/13. Exports reached just 47,000 tons, the lowest result in the past 5 seasons.

A decrease in exports was registered in almost all major grape suppliers of Russia with Turkey being an exception and maintaining its export levels. At the same time, despite a decrease in shipments, Uzbekistan still ranked second in grape exports to Russia with the share of 12%. The country has been the second largest exporter for the fifth season in a row.

Dixi revenue increases by 23.3% for six months in 2013

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For six months in 2013, the revenue of “Dixi” group of companies increased by 23.3% compared to the same period of the last year and amounted to 87.4 billion rubles.

Convenience stores “Dixi” sales increased by 53.5% to 66.5 billion rubles during six months 2013.

Meanwhile, sales of supermarket chain “Victoria”, that belongs to “Dixi” group of companies, declined by 38.5% to 12.5 billion rubles. The main reason of sales decline is the transfer of shops “Victoria” into the chain “Dixi”.

Hypermarket “Megamart” sales for the first six months of 2013 increased by 17.5% to 7.6 billion rubles. Hypermarket “Minimart” sales has reached 1.67 billion rubles, that is 25.2% more than during the same period of 2012.

For six months in 2013 “Dixi” has opened 133 stores and closed 25 stores. As of June 30, 2013, under its control there were 1,607 stores, including 1,496 stores convenience stores “Dixi”, 80 supermarkets “Victoria”, one store Cash and 30 hypermarkets “Megamart” and “Minimart”.

Source: www.retailer.ru

Russian Ministry of Agriculture changed the law on organic food production

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In Russia, there is still no legal concept of an “organic product” and its standards. For several years, the bill consideration was delayed, but in the fall 2012, the Ministry of Agriculture finished the bill after appeals of farmers that produce organic food. In the version of the project, published in November, it was said that agricultural products would be called organic or bio, corresponding to the Russian or foreign certification systems; and that certification would be valid for 5 years.

In the new version of the project, it is said that separate registration is required for each type of organic product products. The registration term is 3 years. As for the labeling of products that will meet the requirements of the law, only the term “organic” must be used.

Only those producers who have passed state registration, may get special state support.

There will be a system of fines for those who will violate the law. Legal entities will pay fines of 20,000-30,000 rubles (470-700 euros) for violation of organic food production, for violation of state registration – 5,000-10,000 rubles (120-230 euros), for illegal use of the brand “organic” – 30,000-40,000 rubles (700-940 euros), with confiscation of the all false branded items.

Source: www.freshmarket.ru

Low apple prices in Poland despite a decrease in EU production

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Despite lower apple production in the EU and, correspondingly, lower stocks, apple prices in Poland in the end of the season 2012/13 were averagely 32-33% lower year-on-year. Average prices over the season were 25% lower compared with the previous result.

Polish apple growers had to reduce their prices due to record high apple production in the country, which, correspondingly, led to larger stocks of apples during the season. Polish apple stocks amounted to 56,000 tonnes as at June 1, 2013, an increase of 4% from the same period of the previous year. Furthermore, Poland was the only country in the EU with larger stocks year-on-year: Italian stocks were 30% lower, French stocks decreased by 55%, and Italian apple stocks fell by 65%.

However, despite that, the Russian Federation still remained the main export market for Polish apples, while the demand for them in the EU was low. Furthermore, Russian apple production was rather high too, which intensified competition in Russia and also exerted pressure on prices.

Source: www.fruit-inform.com

Inflation in Russia under control

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The Central Bank of Russia expects inflation to slow down in the second half of 2013 and will be 5-6 %. If this happens, the rise of consumer prices in the current year can be a record low for the last twenty years.

Current inflation is expected to slow down not only in 2013, but also in the beginning of next year. The risks, however, still remain.

According to Federal State Statistics Service, inflation in Russia since the beginning of the year has reached 4%. The growth dynamics of prices for goods and services corresponds to the last year dymamics. In 2012, in the second week of July the inflation was 4%.

From 2 to 8 July, prices increased by 0.2%. From the beginning of July there was 0.5% growth. Such a large figure can be easily explained by the indexation of tariffs that happened July 1. According to Federal State Statistics Service, electricity prices rose by 1.4%, for certain types of public services – by 0.7-1.5%; and rents in state houses increased by 0.5%.

If forecasts becomes true, it will be a new record, the last record was in 2011, when the increase of consumer prices in the country was the lowest in the history of the new Russia – 6.1%. In 2012, inflation amounted to 6.6%.

Source: www.retailer.ru

Magnit announces 30% sales rise

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Russian food retailer Magnit has announced a rise in sales by 30% in June, year-on-year, to stand at 47.5 billion rubles, after a rise of 34.5 percent in May.
Magnit, which recently overtook rival X5 as Russia’s biggest grocery chain by revenue, said the June result brought sales for the first six months of the year to 273 billion rubles, an increase of 31.5 percent.
The company, also Russia’s biggest food retailer by store count, opened 170 stores in June, bringing its total to 7,416.
Magnit has said it planned to grow revenue by between 27 and 29 percent in rouble terms this year, compared with about 34 percent in 2012, backed by a $1.8 billion capital spending programme.

Source: www.freshplaza.com

Moldova doubles apple export to Russia over 5 seasons

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According to Federal State Statistics Service of the Russian Federation, Russia doubled imports of Moldovan apples over the past 5 seasons. In the first 11 months of the season 2012/13, Moldova exported 166,000 tonnes of apples to Russia, while in the same period of the season 2008/09 Moldovan exports had amounted just to 82,000 tonnes.
Five seasons ago, Moldova was just fifth largest exporter of apples to the Russian Federation. Currently, this country ranks second and is behind only China.
In the current season Moldova accounted for the share of 13% in Russia’s total apple imports despite a decrease of 11% in exports in the first 11 months of the season.
Source: www.freshplaza.com