Market News

SHAFFE Expects Difficult Conditions for Fresh fruit Exports to Russia and Ukraine

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The Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE) has reviewed the Russian and the Ukrainian fresh fruit import markets and expects increasingly difficult conditions to maintain supply to both markets.

In 2020, Ukraine imported 795 million USD of fresh fruit with over 48% originating from suppliers like Turkey (citrus), Ecuador, and Costa Rica (bananas and pineapples). Total exports of fresh fruit from SHAFFE member countries (*) reached USD$54 million in 2020, representing 7% of the total fruit imports market in Ukraine. The main suppliers to Ukraine from SHAFFE member countries included South Africa, which exported mainly citrus with a value of USD$16 million and which represented 30% of the total value of exports registered by SHAFFE member countries in 2020.

In 2020, exports of fresh fruit from SHAFFE member countries to Russia reached 643.084 tons, which represented 17% of the total fresh produce import market During the same period, the main species of fruits exported by SHAFFE member countries to Russia included apples, pears, and citrus, which together represented 80% of the total exports of SHAFFE member countries to this market. The exports of fresh produce from SHAFFE member countries have been on an upward trend, registering a 29% volume growth, between the period 2017 to 2020. South Africa and Argentina are the main suppliers of fresh produce to Russia and represent 69% of the total volume exported by SHAFFE member countries in 2020.

According to SHAFFE, foreseeable negative impacts could include reduced exports to the Russian and Ukrainian markets and hence the redirection and oversupply of citrus, apples, and pears to other destinations such as the EU, U.S.A., or others. This could lead to an oversupply of those markets with resultant financial losses for exporters. Additionally, the entity foresees that this situation could compound even further the negative impact of the current rise of production and logistical costs facing the Southern Hemisphere exporters and growers. Sanctions by some Western countries against Russian banks as well as SWIFT payments will lead to add to the risks faced by exporters. It is hoped that the situation will be resolved soon.

freshplaza.com

Russia Allowed Apple and Pear Imports from China

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Rosselkhoznadzor has allowed Chinese importers to again supply fresh apples and pears to the Russian market from February 20, 2022. This is good news for China and for Russian consumers, who are now paying a very high price for Russia’s voluntary self-isolation from global markets.

However, industry sources say it is bad news for Moldova, which now has a major competitor in the Russian market. Andriy Yarmak, an economist at the Investment Centre of the Food and Agriculture Organization of the United Nations: “China is the world’s largest exporter of apples and has remained at the top of the global ranking of exporters, despite the ban on the supply of products to the Russian market. China exports about 1 million tons of fresh apples to many countries around the world annually.”

“The main advantage of Chinese apples is their low price. Therefore, they are mainly purchased for a low price segment, while China imports premium-quality apples from countries such as New Zealand, the USA, Chile, South Africa, and France.”

east-fruit.com

Chilean Cherry Exports are Expected to Increase by 9.8% to 387,268 mt

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According to the ASOEX Cherry Committee, which represents more than 82% of the volume of Chilean cherry exports to the world, Chile will export 77,453,626 boxes of cherries (5 kilos) or 387,268 tons of cherries this season, i.e. 9.8% more than in the previous season.

It should be noted that the current season is already underway. According to data from ASOEX, to date, Chile has exported 44,162 boxes of cherries.

“We have started a new cherry export season. We have prepared ourselves to deliver a high-quality healthy product to our consumers around the world. We have worked, together with the authorities of the Ministry of Agriculture and the SAG, to have a very good season. In addition, we are working to diversify our cherry exports. China will remain as the main destination for our fruits but we are projecting a significant increase in other markets. Thus, we expect China’s share will decrease from 91% to 87%,” stated Ronald Bown, the president of ASOEX.

“In general, we have had good weather conditions. We have not been affected by rain or frost, so we think our fruit will have good quality. The committee has worked, very conscientiously, on different recommendations to continue safeguarding and improving our fruit’s quality and safety. In addition, given the complicated logistics outlook in the world, we are working closely together as an industry to have a very good season,” stated Cristian Tagle, the Chairman of the ASOEX Cherry Committee.

“We have defined, together with the Cherry Committee and ProChile, a promotional campaign that accompanies this growth in cherry volumes and encourages greater consumption of the fruit. We will develop a mix of marketing actions, especially in China, as it is our main market, but this season we will also implement promotional campaigns in eight other markets: the US, South Korea, Vietnam, Thailand, India, Russia, Canada, and Taiwan,” stated Ignacio Caballero, ASOEX Marketing Director.

 

We invite you to the webinar “Import of Cherries from Chile to Russia 2021. Questions and Answers”. The webinar will take place on December 14, 2021, at 11.00 (GMT + 3). Sharif Christian Carvajal, Marketing Director for Europe, Asia and the Middle East of the Chilean Association of Fruit Exporters (ASOEX), more will tell in detail about the current cherry season in Chile, as well as the plans of the Association to promote the Chilean cherry in Russia. During the webinar, participants will be able to ask questions to the speaker.

You can register to the webinar here.

The webinar is organized by the ASOEX.

www.freshplaza.com

Webinar “Import of Cherries from Chile to Russia 2021. Questions and Answers”

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During the webinar, Sharif Christian Carvajal, Marketing Director for Europe, Asia and the Middle East of the Chilean Association of Fruit Exporters (ASOEX), told about the current cherry season in Chile, as well as the plans of the Association to promote the Chilean cherry in Russia. During the webinar, participants will be able to ask questions to the speaker.

Speakers:

  • Sharif Christian Carvajal
    Chilean Association of Fruit Exporters (ASOEX). Marketing Director Europe, Asia and the Middle East
  • Ksenia Gorovaya
    Director of the consulting agency Crisp Consulting

The webinar was organized by the Chilean Association of Fruit Exporters (ASOEX).

Russian Inflation Jumps to 8.1%

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Inflation in Russia climbed to its highest level in almost six years in October as the government and Central Bank struggle to rein in rapid price rises which threaten to undermine economic recovery.

Inflation hit 8.1% last month, the Rosstat national statistics service said Wednesday — the fastest rate of price increases since February 2016, and more than double the Central Bank’s 4% target. That was up from a reading of 7.4% a month earlier and ahead of market expectations.

The higher prices come as policymakers around the world face the prospect of so-called “stagflation” — high inflation and sluggish growth — as the global economy continues to emerge from the coronavirus. In the U.S., inflation is currently running at a 13-year high amid major supply chain bottlenecks.

Russia’s Central Bank chief Elvira Nabiullina has for months sounded the alarm over global price rises, putting herself at odds with western policymakers earlier this year by warning them the uptick in inflation was not just a transitory phenomenon.

(more…)

Georgian Fresh Potato Exports at Record High in October

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After an unusually high level of fresh potato exports from Georgia in September 2021, they increased even more in October. According to the official trade data of the Ministry of Finance of Georgia, Georgia exported 9,700 tons of potatoes in October 2021, which is 90% more than October exports over the last seven years combined. Russia remained the key destination with an 81% share in export volumes. The export price on FOB terms for the Russian market was $420 per ton, which is the highest price among the countries importing potatoes from Georgia in October.

Due to the unprecedented demand on the Russian market in September and October 2021, the export of Georgian fresh potatoes amounted to 16,000 tons. This is three times more than the total exports for these months of 2014-2020.

www.freshplaza.com

Pea Processing Attracted Record-Breaking Investments

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Pea processing has attracted record-breaking investments in Russia. They are promising a broad range of new high-value raw materials to the feed industry. Russia has the world’s second-largest pea industry after Canada, and production volumes are still growing.

Pea production climbed to 2.74 million mt in 2020, compared to 2.37 million mt in 2019 and 2.3 million mt in 2018. Russia exports nearly 1 million tons of peas per year, while the rest is used by the Russian food industry.

Several Russian companies have recently laid out plans to begin high-level pea processing in Russia in the next few years. Moscow-based company Pineco expects to begin building a pea processing plant in the next two months, the state development corporation of Orel Oblast said in a statement on July 18.

www.freshplaza.com

www.allaboutfeed.net

Russian Supermarket Chains Svetofor and Dobrocen are Expected to Enter the Uzbek Market

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Two Russian chains of the discounter segment are currently entering the Uzbekistan retail market: Svetofor and Dobrocen. This means that the “supermarketization” of Uzbekistan continues. Despite the fact that the chains did not make official announcements about entering the market, both Svetofor and Dobrocen started looking for employees in a number of cities of Uzbekistan, posting vacancies on job portals. A number of foreign, international, and local companies have recently entered the food retail market of Uzbekistan, including French Carrefour, Magnum Cash & Carry from Kazakhstan, Havas, Asia.uz and Baraka Market. Almost all of existing chains announce ambitious expansion plans and many new store openings. It means that the chain retail market in Uzbekistan is experiencing a real boom.  (more…)

Russia Increased Potato Imports from Iran, Moldova and Kyrgyzstan

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Record high prices for potatoes in Russia and fears of a shortage of potatoes in the 2021/22 season are forcing Russian traders to look for suppliers around the world. Normally local stocks are the highest at this time and Russia exports potatoes. Imports usually begin only in March or April, when local stocks are exhausted.

Since Russia has banned the supply of potatoes to its market from the EU, Ukraine, the United States and a number of other countries, the search for alternative suppliers of potatoes will not be an easy task in the “scarce years”. Egypt, the main potato supplier to Russia, will be able to export no earlier than February. Belarus itself is facing record-high prices and is also importing potatoes, namely, from Ukraine.

Russian potato growers can now sell them on average 3 times more expensive than usual at this time. Such a high level of prices can rationalize potato imports from rather distant countries. Russian importers manage to buy potatoes at an affordable price in Kyrgyzstan and Moldova now. The volumes of these supplies can be large by the standards of the supplying countries, but they are small for the Russian Federation. According to traders, there are also more and more potatoes supplied to the Russian market from Iran. This is a case of large volumes. The possibilities of importing potatoes even from Pakistan are being researched now.

It is notable that Central Asian countries, especially Uzbekistan, are deficient in potatoes. Only Kyrgyzstan grows enough to provide large export volumes. Farmers in the mountainous regions of the country focus on potato production. With a temperate mountain climate and sufficient precipitation, as well as high potato prices in the region, potato farming is a profitable and sustainable business for small and medium-sized farms in Kyrgyzstan.

A sharp increase in the supply of Kyrgyz potatoes to Russia this year could lead to a jump in their prices in Central Asia. For instance, Uzbekistan previously imported potatoes mainly from Russia, but the price level in Russia is so high this year that imports are out of the question. At the same time, Uzbekistan itself has already imported a record volume of potatoes in the first half of the year.

As for Russia, a further sharp rise in prices on the local potato market is very likely, unless market participants made a mistake in assessing the harvest. If it turns out that potato stocks are not as low as expected, prices may stabilize as they are indeed too high now. A decrease in prices is not expected.

east-fruit.com

Persimmon is Getting More Expensive in Uzbekistan – Prices are 70% Higher Than Last Year

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There is a sharp rise in wholesale prices for persimmons in Uzbekistan. Their average price already reaches $0.30/kg now, while last year it was $0.18/kg.

The rise in prices for persimmons provokes increased demand from wholesalers who are trying to store persimmons. Traditionally, they are stored for selling in the pre-New Year period, when their prices rise significantly. This year, the rise in prices is also facilitated by the fact that the season of persimmon ripening in Central Asia has shifted to a later date. Do not underestimate the impact of the poor harvest of persimmons in Spain, the global market leader for persimmons.

Note that the export volumes of persimmons from Uzbekistan are growing quite rapidly and reach almost 100 thousand tons. The main competitors of Uzbekistan in the Russian persimmon market are Azerbaijan, Iran, Israel, Georgia, Turkey, and China. Russia, on the other hand, is the world’s largest importer of persimmons. Kazakhstan that also imports large volumes of persimmons from Uzbekistan is second in terms of persimmon imports globally. Another country in our region, Ukraine, is fourth after Germany. More and more persimmons from Uzbekistan are sold every year in Ukraine. In 2020, Uzbekistan supplied Ukraine with a record volume – 1.8 thousand mt.

east-fruit.com