Fruits are arriving in St. Petersburg

In St. Petersburg, fruit importers are looking for new partners. The market volume available after the import ban is $0.5 billion. Last week, the first ships with fruit arrived from Africa in St. Petersburg, and in the supermarkets apples from China are already sold. Local companies are looking for partners in exotic countries. The biggest supplier of fruits to Russia is Ecuador, the main exporter of bananas. Last year produce for $927.4 million were delivered from this country in St. Petersburg. The top 10 biggest suppliers also included Spain, Poland and Belgium with a total supply $254.2 million in 2013. Total imports of fruit from Europe and the United States were 2 times more.

“European countries accounted for 80% of seasonal supply, –  says Roman Hajiyev, CEO of United Fruit Company SMIT. – For example, a stone fruits were from Spain, Italy, Greece, and apples and pears were from Poland, Germany, Belgium and Holland”.

One of the largest suppliers in St. Petersburg, AyBaRus, imported more than 30% from Europe, the company used to import stone fruits from Spain and Greece. “Immediately after the ban, we switched over to Turkey and Serbia, but we could not full up all the necessary volumes” – says Anton Chenash, sales manager to retail networks from AyBaRus company. United Fruit Company SMIT turns to Serbia, Macedonia, South Africa, Argentina, Chile, India. Retail chain Dixy turns to suppliers from Russia, from Kuban, Krasnodar and Stavropol regions. In Dixy supermarkets now there are peaches and grapes from Turkey and Macedonia.

All these countries have already worked with Russia, but in terms of the supply they were not included even in the top 20 suppliers. So, Israel, Serbia and India in 2013 exported fruits for $20-30 million. To fill the region’s needs in fruits, volumes should increase by 2-3 times.

www.dp.ru

Northwest pear industry revised crop estimate to 445,144 tons

With harvest currently underway, representatives of the Northwest pear industry have officially updated their initial projections for the 2014 fresh pear crop yield.  Reports of a crop of excellent quality have been confirmed from all corners of the pear growing regions in Washington and Oregon, and the updated projection is showing a crop larger than previously forecast in the spring.  The revised estimate points to more than 20.2 million standard 44-lb box equivalents (or 445,144 tons) of pears for the fresh market.  This estimate is 2% larger than the five-year average, and 6% smaller than last year’s record crop.  The Northwest pear industry’s initial spring projection showed a crop of 18.7 million boxes.

Harvest began in late July with the Starkrimson and Bartlett pear varieties.  Anjou, Red Anjou, Bosc, Comice, Concorde, Forelle, and Seckel will be picked from late August through mid-October.  No significant weather issues have affected the crop to date.  The top three varieties in terms of production remain the same as in previous years; Green Anjou pears are anticipated to make up 53% of the total 2014 crop, and Bartlett and Bosc pears are expected to yield 22% and 15% respectively.

The updated estimates for the organic portion of the Northwest pear crop have increased proportionally, showing a total of 976,780 standard 44-lb box equivalents (21,489 tons) of organic pears in the 2014 harvest.  This is an increase of about 3% when compared to the 2013 record organic crop, and a 16.6% increase over the five-year average.

“Compared to last year’s record crop, this crop is more consistent with the five-year average,” said Pear Bureau Northwest’s president and CEO, Kevin Moffitt.  “We’re looking forward to another crop of excellent quality and fruit size to meet the demands of the domestic and export markets. Our representatives across North America and around the world have a full season of promotions in place to help boost sales, and we’re looking forward to working with our retail partners in another successful pear season.”

www.freshplaza.com

Russian Federation makes changes to list of prohibited products

The full text of the new resolution No830 from August 20 can be found here.

The previous ban regarding “vegetables, edible roots and tubers” with the the customs community codes 0701, 0702 00 000, 0703, 0704, 0705, 0706, 0707 00, 0708, 0709, 0710, 0711, 0712, 0713, 0714 under recent talks have made the following changes to “vegetables, edible roots and tubers (excluding potatoes seeds, onions, sweet corn hybrid for planting and peas for sowing) with the following codes: 0701 (except 0701 10 000 0), 0702 00 000, 0703 (except 0703 10 110 0), 0704, 0705, 0706, 0707 00, 0708, 0709, 0710, 0711, 0712 (except 0712 90 110 0), 0713 (except 0713 10 100 0), 0714.

The category of Fruits and Nuts remains the same, the prohibited imports codes are 0801, 0802, 0803, 0804, 0805, 0806, 0807, 0808, 0809, 0810, 0811, 081.

The countries banned from shipping the specified goods to Russia for one year remain the same: the US, countries of the European Union, Canada, Australia and Norway.

The Russian Federation introduced a total ban on August 7 for a period of one year on supplies of beef, pork, cheeses, poultry, milk and fish from countries of the European Union, US, Australia, Canada and Norway. The measure was taken due to a number of countries having imposed economic sanctions against Russia because of events in Ukraine.

www.fruitnews.info

Argentina interested in increasing shipments to Russian market

Argentina’s exporters view Russia’s market as a good market for juice, fruit, vegetable, dried fruit and other types of produce exports.

Ministers of Argentina and representatives of Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) will meet and discuss the question of increasing supplies and the assortment of possible exports to Russia. During the meeting, it will be also discussed whether products of Argentina’s Food Product Industry Coordinator (COPAL) will be included.

Argentina is not the only transoceanic country that is interested in increasing shipments to the Russian market. The countries of Brazil, Ecuador and Uruguay are also seriously reviewing options to increase exports to Russia.

www.fruitnews.info

More import from Central Asia means more drugs

News appear every day in the international press about the Russian boycott and the implications for certain countries or producers. Europe has to search for new export markets and the surpluses, for example in Poland, threaten to be detrimental for growers across Europe. In Russia, it appears that the increase in imports from Central Asia has also led to an increase in drug trafficking. Additionally, the Kaliningrad region, enclosed by European countries, has fallen victim of closed borders. Trucks with vegetables and fruit are forced to wait in long queues on the Lithuanian side of the border.

Polish apples compete in Europe
While Polish agriculture as a whole has been hit hard by the Russian ban, there are product groups that seem to escape unscathed. The damage to broccoli and cauliflower growers is expected to be low, according to figures from the Foundation of Assistance Programmes for Agriculture.

The Eastern European country exported 25.5 thousand tonnes of broccoli and cauliflower in 2013 for a value of nearly 9 million Euro. Russia’s share was four thousand tonnes, accounting for 1.43 million Euro. Each year, the importance of the Commonwealth of Independent States, an alliance of former Soviet republics, as a destination for Polish exports is reduced. A significant part of the broccoli and cauliflower exports go to Western Europe. The growing consumption of these vegetables in Western Europe can help alleviate the situation for the sector. Additionally, nutritionists want to promote the consumption of broccoli and cauliflower in Poland.

Polish apple growers have a lot more to suffer from the import ban. The country’s juice industry launched a campaign to promote the consumption of fruit juice, and particularly apple juice. Every year, 260,000 tonnes of Polish apples are processed into juice; the average Pole drinks 11.7 litres per year, of which 3 litres correspond to apple juice. The juice industry said that a doubling in juice consumption volumes would help reduce the pressure on the apple sector.

Polish apples can also cause problems for growers in other European countries. Not only because Polish fruit is reoriented towards the European market, but also because Poland is looking for new markets, which are the same ones Western Europe is looking to enter. The cheaper Polish apples would be tough competitors for the more expensive Western European fruit.

Latvia afraid of Polish surplus
Poland’s surplus production will be sold in neighbouring countries. Latvian growers are concerned about the increasing imports of Polish vegetables and fruits, which put pressure on prices. “The situation is very threatening; we already had to throw away cauliflowers, courgettes and other seasonal products,” says a Latvian grower. Producers have asked the government and banks for support.

Spanish growers dumping potatoes
Spanish growers dumped potatoes on the pavement next to supermarket chain Carrefour as a response to the retailer lowering its prices. Growers are angry because the sanctions had already put pressure on prices.

Cyprus focusing on Arab countries
The island places its hopes on new markets, such as Egypt and the United Arab Emirates. The loss of 13 million Euro affects mainly the citrus and nut growers, which are the country’s biggest export products. The citrus season will start in November and thus the damage can be reduced by finding new markets.

Belgium waits
Belgian growers are asking the government for funds to be able to enter new export markets. Growers want to ship their products to destinations like the United States and Canada, among others. Despite long-running negotiations with these two countries, the borders are still closed. Additionally, producers want clearer information about the EU’s compensation scheme. On that basis, growers will decide whether to harvest or not.

Central Asia shipping fruit and vegetables and drugs
According to reports, the import ban has had a positive effect on Central Asia’s fruit and vegetable sector, as Russia has switched to some of these countries to fill the shortage gaps. According to Russian sources, the quality of these products is good; some even believe that the quality is better. But imports from these countries also have a negative side; more and more drugs are found together with the fruit and vegetables. Earlier this week in Moscow, 180 kilograms of heroin were discovered hidden in an apricot shipment.

Kyrgyzstan sees an opportunity
Kyrgyzstan sees an opportunity. The country is trying to enter Russia and Kazakhstan via the Eurasian Economic Union, a counterpart of the EU. As reported by the Kyrgyz Ministry of Economy, Kyrgyzstan appealed to Eurasian Economic Commission to assist in the promotion of agricultural and industrial production of Kyrgyzstan. And therefore, to cancel bans imposed by Russia and Kazakhstan against products from Kyrgyzstan; to organize a green corridor for export of agricultural products; and to establish a direct connection between the Kyrgyz producers and Russian and Kazakh retailers and markets.

As the result, the Ministry of Industry and Trade in Russia has been instructed to create required conditions for export of agricultural products from Kyrgyzstan to the Russian Federation, and for their access to the Russian markets.
The Ministry of Economy in Kyrgyzstan has already started to consolidate the efforts of the Ministry of Agriculture and Irrigation, Ministry of Transport and Communications, State Customs Service, Federal Sanitary, Veterinary and Phytosanitary Service, as well as associations of agricultural producers, and carriers.

Drought put Azerbaijan offside
Meanwhile, Azerbaijan appears to have fallen off as a supplier of fruits and vegetables. The country is facing a severe drought which heavily affected the autumn and winter harvest. The drought is so severe, that for some growers it will possibly take at least five years for normal harvest volumes to be restored. Rains in the autumn could alleviate the situation, but they could also cause mud flows.

Russia remains optimistic about its own crops
In Russia, the leaders remain optimistic. Governors of different regions believe that the agricultural sector can grow. The governor of Kuban, for instance, expects its agricultural production to double with the opening of a new greenhouse complex in Saratov next November, which will increase production volumes by 870 tonnes. This year, the region harvested 4,500 tonnes of vegetables.

Consecrated apples distributed among disabled children in Moscow
During an Orthodox holiday (19 August), 250,000 apples were distributed in shelters among disabled children in Moscow. The apples were from local growers. The Moscow region announced in the media that the volume of vegetables and potatoes harvested increased by 29%, which amounts to a total harvest of 22,342 tonnes. Beets, potatoes, carrots and onions are the main products with 9,841 tonnes, 1,918 tonnes, 9,672 tonnes and 592 tonnes, respectively.

Kaliningrad (Russia) enclosed by Europe
At the border between Lithuania and Kaliningrad, Russia, there are reportedly lines of trucks with fruits and vegetables waiting to be allowed across. The drivers must be able to demonstrate where the products come from. The Russian region of Kaliningrad is most vulnerable to the Russian sanctions, because the region is enclosed by European countries. In the first half of the year, Poland supplied the vast majority of the fruit and vegetables.

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Poland’s Ministry of Economy sends formal complaint on Russia to WTO

Poland’s official document contains a formal complaint on Russia for its recent bans that it has placed on the “agricultural imports from countries that have placed sanctions on Russia”, according to information published in a report by ITAR-TASS, quoting the official information of Poland’s Ministry of Economy.

The complaint refers to the decision of Russian authorities to impose bans on goods produced in the European Union.

Poland’s Minister of Agriculture, Marek Savitsky, on August 12, said that losses to the country’s agricultural sector as a result of Russia’s sanctions could amount to a sum of 750 million euros.

Last year, the monetary volume of shipments to Russia reached 1.3 billion Euros. An earlier summary of losses for the Fruit and Vegetable sector of Poland was valued at less than 500 million euros.

www.fruitnews.info

Specialists of Rosselkhoznadzor discovered attempts to re-export banned products through Belarus

Sergey Dankvert, head of Russia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor), was quoted by ITAR-TASS as having said that over the course of several days the agency has recorded apples, peaches, plums and tomatoes that were delivered through Belarus with no documents to confirm their place of origin, or the products had papers indicating they were from Turkey, Serbia, Macedonia or African countries.

“Several countries of the European Union began sending products to Belarus, with no indication of its real country of origin. They write, for example, it is from Macedonia, and it is clear to us, that it is from Poland or Greece; therefore, there is no evidence that it from Macedonia”, Dankvert said.

He also said that in such a situation, the responsibility for checking the phytosanitary security rests with Belorussian specialists.

www.fruitnews.info

Russia’s X5 Retail Group posts 71 pct rise in Q2 net income

Russian supermarket operator X5 Retail Group NV said on Thursday its second-quarter net profit rose 71 percent, year-on-year, to around 4 billion roubles ($111 million).

Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased 24 percent to 11.4 billion roubles with an EBITDA margin at 7.3 percent compared with 6.9 percent a year ago, the company said in a statement.

(1 US dollar = 36.0290 Russian rouble)

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Armenia is to take advantage from Russian embargo

According to Ovik Abramyan, the Prime Minister of Armenia, the Russian embargo on fruit and vegetables from the USA, the EU and other countries, can be advantageous for Armenian exporters.

It is believed that the current situation provides an opportunity to stimulate the economic affairs of Armenia. The government is said to actively support local producers interested in export to the Russian market.  This is a great opportunity for our producers to establish themselves in the market, and today it will be discussed with the ministers, – Ovik Abramyan announces.

www.freshplaza.com

Russia Bans All U.S. Food Imports and E.U. Fruits and Vegetables

Yesterday, the President of the Russian Federation signed an Executive Order On Applying Certain Special Economic Measures to Ensure the Security of the Russian Federation. This basically means an embargo on importing entire categories of products from those countries which have declared economic sanctions against Russian organisations and individuals.

Russia has completely banned the importation of beef, pork, fruits and vegetables, poultry, fish, cheese, milk and dairy products from the European Union, the United States, Australia, Canada and the Kingdom of Norway.

These restrictions shall be introduced starting today, and for a period of 12 months. But, if Russia’s partners display a constructive approach towards cooperation issues, then the Government would be willing to revise the specific implementation deadlines for these measures.

www.government.ru