Market News

Price of Apples for Processing Continues to Fall

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According to EastFruit analysts, the prices paid for apples intended for processing into apple juice and concentrate have fallen significantly last week. As the harvest has continued in domestic farms and the industrial apple supply from Belarus has increased, prices have been declining almost daily.

While early in the previous week prices stood at $ 0.12 per kg, by Friday they had dropped to $ 0.10-0.09 per kg. Local producers are reacting to the price dynamics faster than the suppliers of Belarusian apples, so their sales are going much faster. At the moment, processors have already ceased to buy apples for more than $ 0.09 per kg. Also, some processors have started to demand a more substantial delay in the payments for the apples supplied to them.

Nevertheless, even such a price is still almost twice as high as that currently paid to producers in Moldova, Poland and Ukraine. Moreover, in these countries, the delay in the payments already exceeds 60 days. Some growers even doubt that processors will fully pay what they were promised, given the threat of a huge supply of concentrate.

Under these conditions, Russian industrial apple processors will also have a hard time selling finished products, because almost all the countries mentioned above and even Belarus are preparing to produce record quantities of apple concentrate.

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How to Change the Life of Russians Due to the Increase in VAT

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Due to the weakening of the ruble and is scheduled for 2019, raising the value added tax (VAT) may increase the prices of many goods.

Prices of clothing and footwear in Russia in 2019 may increase by 5-20% due to the weakening of the ruble and the rise in the rate of value added tax (VAT) to 20%.

Now in Russia there are three VAT rates: 0%, 10% and primary by 18%. A zero rate is levied on many kinds of transport services. Preferential 10% are the producers of the food basket (meat, milk, flour, bread, fish), children’s clothes and food, books and printed materials, medical products and medicines. All other categories of goods are at the basic rate, it is something next year and will increase by 2%. Thus, more expensive clothes and shoes, household appliances and electronics, automobiles, furniture, alcohol and tobacco products, gasoline, entertainment, trips, apartments, and housing services.

According to experts, clothing and footwear in the budget segment will rise by 5-10%, and premium — and more by 10-20%.

Pricing in the fashion sector is highly dependent on the exchange rate. With the weakening of the ruble and the rise in VAT, the cost of collections will inevitably increase, and hence the prices will also increase by 5-10%. As for pricing Western brands — it is entirely dependent on currency fluctuations, the Russian manufacturers can reduce the dependence from the course, placing orders to domestic factories, but the fabric still has to import.

The tax increase will hit the market in digital technology. Specialists of the information-analytical Agency TelecomDaily has estimated that prices for equipment will increase by about 5%, while the cost increase will manifest itself in one or two months after the introduction of the new tax. So, if before a decent fridge can be bought for 30 thousand rubles, now the price would be added for at least 1.5 thousand.

Real estate market analysts have warned that after the VAT increase the cost of construction projects will increase by 2-3%. Some experts call the more depressing figures: +10%.

The furniture is too expensive, according to the forecasts of market participants — 1-2%, although some time in the shops will be sold at the old prices previously paid for the furniture.

stopru.com

Russia and China to Reduce Use of US Dollar

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Moscow and Beijing plan to use their own national currencies more often in trade deals, said Russian President Putin on Tuesday. “The Russian and Chinese sides confirmed their interest in using national currencies more actively in reciprocal payments,” he said at a joint news briefing with Chinese Leader Xi Jinping after talks at the Eastern Economic Forum (EEF) in the Russian city of Vladivostok.

Putin said this would “increase the stability of banks’ servicing export and import operations while there are ongoing risks on global markets.”

Russia is increasingly looking to China for investment after a sharp decline in relations with the West after the 2014 annexation of Crimea from Ukraine and support for pro-Russian rebels in eastern Ukraine.

China is seeking allies amid growing criticism of its militarization of the South China Sea and continued accusations of human rights breaches and unfair trade practices.

President Xi Jinping said on Tuesday that Russia and China should work together to oppose trade protectionism and what he called unilateral approaches to international problems.

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Uzbekistan: Exports of Tomatoes to Russia Tripled

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Russia increased imports of tomatoes from Uzbekistan in the first half of 2018. Imports of tomatoes increased to about 410,000 MT; 17% more than in the same period of 2017.

At the same time, Uzbekistan increased the export of fresh tomatoes to Russia by three times during the reporting period.

For the first six months of 2018, as many as 14,500 MT of Uzbek tomatoes reached the Russian market. This amount accounts for about 3.5% of total imports of these products to the country. A year earlier, Uzbekistan’s share in the supply of tomatoes to the Russian market in the first half of the year was 1.3%.

According to East-Fruit analysts, the main advantage of Uzbekistan is the opportunity to supply inexpensive tomatoes from unheated greenhouses covered with film already in May, when the prices for tomatoes in Russia are still very high.

Azernews.az reports how at this time, there is a local tomato from heated greenhouses, as well as greenhouse products from Turkey, Iran, Morocco and Armenia in the Russian market.

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More Than 180,000 MT of Vegetables Harvested in Krasnodar Territory

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In the Krasnodar Territory, more than 180,000 MT of open field and greenhouse vegetables were harvested from the beginning of 2018. This was reported by the press service of the Ministry of Agriculture of the Russian Federation.

“According to current data, vegetables have already been harvested from almost 20,000 hectares, with a yield of 124,600 MT. This is at the same levels of the previous year. Harvesting of vegetables of sheltered cultivation has continued; since the beginning of the year their gross yield is 59,000 MT. This is 4,000 MT more than in the previous year,” the report said.

Earlier, FruitNews wrote that the region plans to build a greenhouse complex with an area of about 60 hectares for the production of tomatoes.

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Harvest of Russian Berries Decreased by 8.7%

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In 2017, the harvest of berries in Russia decreased by 8.7% to 700,000 MT. This was stated in a research piece titled “The Russian market of fresh fruits and berries: complex analysis and forecast” by AnalyticResearchGroup.

It specified that for the last 9 years, the gross yield did not show any significant fluctuations, ranging from 670,000 MT in 2010 to 810,000 MT in 2016. The area of ​​perennial berry plantations in 2017 amounted to 127,500 hectares. In the study, AnalyticResearchGroup noted that compared to 2016, the planting area decreased by 0.6%, returning to the levels of 2015.

The largest volumes of berries were harvested last year in the Krasnodar Territory – 44,640 MT. Also included were the Republic of Tatarstan – 34,270 MT- and the Rostov region – 32,860 MT.

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80% of Fruit and Veg Shipments to Far East Russia Arrive Through Manzhouli

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80% of fruits and vegetables on the tables of residents of the Far East of Russia are supplied through the Manzhouli/Manchuria/Inner Mongolia Autonomous Region bordering the Trans-Baikal region of Russia, according to the local customs service.

Statistics show that by the end of the first half of 2018, the volume of agricultural exports from China to Russia via Manzhouli grew by 22.1 percent year-on-year, reaching a value of 1.44 billion yuan (about $ 209 million).

The value of fruit exports amounted to 650 million yuan (94.2 million dollars), which is 110 percent more than in the previous year. Meanwhile, vegetables shipments were worth 597 million yuan (86.5 million dollars), 13.1 percent less than in 2017.

The growing demand for fruits and vegetables on the Russian market, according to experts, is due to the improvement of the country’s economic situation and the increase in the purchasing power of its population.

The period of greatest demand for agricultural products in the Far East of Russia will be that from October to May next year. Manzhouli enjoys great advantages for the supply of fruits and vegetables to Russia due to its geographical location.

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Fruit and Veg Prices Rising Much Faster in Russia Than in the EU

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Between January and May 2018, food products became 2.1% more expensive in Russia, while in the European Union, the same products saw prices grow by just 1.1%, according to the Federal Statistics Service (Rosstat).

The most notable difference was recorded in the price of vegetables, which grew by 14.4% in Russia, while in the EU they only increased by 2.7%. Meanwhile, fruit prices rose by 9.3%, while in the EU, they only increased by 6.7%.

It is worth noting that in 2017, the picture was the reverse, with prices in Russia rising more slowly than in the EU. Last year, food prices in Russia grew by 0.7%, while in the EU they increased by 2.6%.

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EU Extends Sanctions on Russia

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The EU on Thursday extended sanctions against Russia for another six months over Moscow’s actions in Ukraine.

The Council of the EU unanimously adopted the extension on the restrictions, which were originally imposed in July 2014 following Russia’s annexation of Crimea, citing Moscow’s “actions destabilising the situation in Ukraine.”

The sanctions target the financial, energy and defense sectors, as well as the area of dual-use goods — products that can be for either military or civilian use. The measures include limiting access to EU markets for five major Russian majority state-owned financial institutions and their majority-owned subsidiaries, as well as for three energy and three defense companies.

The sanctions also entail a ban on arms trade and curtailing Russian access to certain “sensitive” technologies that can be used for oil production and exploration.

EU leaders have said that the sanctions will be lifted once all sides in Ukraine commit to the ceasefire agreed in the Minsk accords.

www.politico.eu

Russian Apple Imports 2017 up for the First Time Since 2013

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In the period from 2013 to 2017, the import of apples fell from 1.40 to 0.71 million MT, according to the data of the report “Analysis of the apples market in Russia” prepared by BusinesStat.

“The main reason for the reduction in imports in these years was Russia 2014 reaction on the sanctions, boycotting the import of agricultural products (including apples) from the EU, USA, Canada, Australia and Norway”, the publication reads.

It is specified that the growth was registered for the first time in five years in 2017 by 2.7%. In addition, over this period, the structure of imports has changed in the supplier countries. So, in 2013 and 2014 years. The main supplier of apples to the Russian market was Poland, whose share in total supplies was 37.2 – 50.3%. Import from this country stopped due to the decision to ban the import of fruit by the Rosselkhoznadzor on August 1, 2014.

The main importer in 2015 was Belarus with 518,000 MT(51.5%). According to statistics of BusinesStat, the volume of supplies of Belarus has increased 4.5 times since 2013. Market participants expressed the opinion that the most likely reason for the increase in Belorussian supplies was the re-export of apples from other countries.

In the following years (2016-2017), the supply of apples from Belarus to Russia declined and in 2017 amounted to 58,400 MT.

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