Market News

Magnit establishes subsidiary in Altay Territory

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Magnit, the largest Russian retailer in terms of revenues, has registered an affiliate office for Tander (the chain’s operator) in Barnaul, with a plan to enter the Altay Territory market. The first of the company’s stores in the region is expected to open in September 2014.

The company had previously announced its intention to build a logistics centre in the neighbouring Novosibirsk Province, to cover the needs of nearby regions, including the Altay Territory. The construction period is 2013-2014. The amount invested in the project will be RUB 1.5bn (€33m).

Overall, at the end of 2013 Magnit was operating 7,407 grocery stores in Russia. In addition, the retail giant had 686 cosmetics stores (the Magnit Kosmetik brand).

www.ceeretail.com

Russia bans oranges from Egypt

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Russia has lifted ban on ten Egyptian companies exporting citrus fruits (mainly oranges) to Moscow, state’s news agency MENA reported on Friday.

The 2013/14 citrus annual report of US Department of Agriculture said Egypt has been facing the Mediterranean fruit fly, which is the main economic pest negatively affecting production and exports.

Accordingly, complaints have been raised by some importing countries such as Russia and Ukraine after detecting some shipments infected with fruit flies.

The Egyptian government is funding the “Fruit Fly Resistance Project” that aims to control the spread of this pest and administers other regulations that have been in place in order to control the quality of the exported fruit.

Despite the complaints and the Russian ban, Egypt’s orange exports registered 37 percent of the total agricultural crops in 2012/13, recording 16,000 tonnes turning out some LE41 million, the Egyptian Agricultural export council showed.

www.fruit-inform.com

Russia might ban meat and dairy products from Norway

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Russia has enhanced control with meat and dairy products from Norway, following a ban on imports of fish from January 1.

The Russian Federal Service for Agricultural Control (Rosselkhoznadzor) does not trust its Norwegian counterpart Mattilsynet to be able to guarantee the safety of food coming from Norway. From January 1 the organization imposed import restrictions on a long list of fish, claiming that Norway’s system for quality control is too lax, which has allowed for low-quality fish to enter the Russian market.

“Because it’s the same organization that gives guarantees not only on fish but also on other regulated products, including milk products and meat, we are forced to enhance control on these sorts of products as well”, said Aleksey Alekseenko, Assistant Manager of Rosselkhoznadzor.

“Subsequently, a failure to produce sufficient state guarantees on the safety of products from Norway can lead to a ban on imports of milk and meat to Russia”, he added.

At the Borisoglebsk border-crossing station between Russian and Norway a sign warning travelers about ban on import of meat and dairy products was put up already in the beginning of December.

www.barentsobserver.com

Russia bans imports of fish and dairy products from Estonia

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On January 9, the Russian Federal Service for Agricultural Control (Rosselkhoznadzor) banned the shipments of dairy and fish products from eleven companies in Estonia.

Sergei Dankvert, the head of the service, said that the decision to restrict the shipments was made following the inspection of dairy and fish companies in Estonia.

The official reason for the move is the absence of required control over the production of raw milk at the companies. In particular, the current system of control does not embrace all necessary groups of antibiotics that are provided in the control rules of the Customs Union.

Meanwhile, milk products from Lithuania are expected to return to Russian stores. The Lithuanian products were absent from the Russian market for almost three months. The ban was introduced by Gennady Onishchenko, the previous head of the Federal Service for Consumer Rights Protection, who was not satisfied with the quality of the Lithuanian milk.

www.english.pravda.ru

Magnit reported slower sales growth

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OAO Magnit (MGNT), Russia’s largest retailer, reported slower sales growth in December as consumer-spending weakened, sending the shares down the most in about 18 months.

Revenue rose almost 23 percent from a year earlier to 63.6 billion rubles ($1.9 billion), less than November’s 29 percent growth, Krasnodar, Russia-based Magnit said in a statement today. Convenience stores led the slowdown as consumers switched to hypermarkets and open markets for New Year shopping.

Magnit fell as much as 6 percent in London trading, the steepest drop since July 6, 2012. The stock was down 4.9 percent to $60.35 at 8:30 a.m. in the U.K. capital.

Magnit’s slowdown may cause investors to revise growth prospects for the entire Russian retail sector, said Natalia Kolupaeva, an analyst at ZAO Raiffeisenbank in Moscow.

Russian gross domestic product grew 1.2 percent in the third quarter, missing estimates. Economic growth has slowed every quarter since President Vladimir Putin won a third Kremlin term in March 2012. Russian retail sales grew 4.5 percent in November, according to Federal Statistics Service.

www.bloomberg.com

Poland reduces apple exports to Russia

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Poland has significantly reduced apple exports to the Russian Federation, according to the official statistics.

In particular, Russian importers purchased just 37,000 tons of Polish apples in November 2013, a decrease of 38% compared with the same month of the previous year.

Russia’s cumulative imports of apples from Poland in the first 5 months of the current season totaled 91,000 tons, a decrease of 29% compared with the same period of the season 2012/13.

Poland is a stable leader in apple exports to the Russian Federation with the share of 55% in Russia’s total imports in the previous season.

www.fruit-inform.com

Moldova increases apple exports to Russia

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Despite a decrease in Russia’s total apple imports in the current season, Moldova managed to improve its position in the Russian market.

Moldova’s apple exports to Russia in November 2013 amounted to 35,000 tons, an increase of 13% month-on-month and year-on-year.

Russia’s cumulative imports of Moldovan apples in the first 5 months of the current season reached 113,000 tons, an increase of 13% compared with July-November 2012.

Moldova is ranked second in apple exports to Russia in the previous season and was behind only Poland.

www.fruit-inform.com

Russia’s apple imports down

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Russia has reduced apple imports in the current season, according to the official statistics.

Imports in November amounted just to 117,000 tons, a decrease of 8% compared with the same month of the previous season.

Russia’s cumulative imports of apples in July-November 2013 totaled 350,000 tons, a decrease of 12% year-on-year.

In the season 2012/13 the Russian Federation imported 1.34 mln tons of apples with Poland, Moldova, China, Azerbaijan and Serbia being the largest exporters.

www.fruit-inform.com

Russian growers want to grow pineapples in new greenhouse

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In Russia’s Far East region “Dalnevostochnoye” a new 18 ha greenhouse has been built with the support of the local government. The greenhouse is not completely new, it is an existing structure that has been reconstructed for 5.54 million Euro. Half of the cost of the revamp was government support, the other half was paid with money from the bank.

The new greenhouse will cultivate vegetables that are popular with locals: leafy greens, cucumbers, tomatoes, several varieties of lettuce, including exotic (Swiss) chard and salad rocket, parsley, basil, dill and others.

The director of the complex also announced that they will try to grow something unusual for the region, such as pineapples. “The technologies we use will allow us to grow anything because we have all the tools to create any climate we desire.”

www.freshplaza.com

US apple sellers hope Chinese ban will end

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Chinese agricultural officials are close to allowing Washington state’s Red and Golden Delicious apples back into China next month after a two-year ban. It is unclear if that will also open up the US import of apples from China, which produces half the world’s apples.

The ban was imposed on Washington, which supplies 80 percent of America’s apples, after a shipment to China in early 2012 was declared to be carrying “postharvest diseases.”

US agricultural officials fought the ban last year, claiming that any diseases in the 2012 shipment only affected crab apples for pollination.

According to the Northwest Horticultural Council, agricultural representatives from both countries met in Xiamen, China, earlier in November, and agreed to new inspections by Chinese officials of Golden Delicious and Red Delicious apples in Washington.

With a surplus forecast of 15 million bushels of apples in Washington over the next few years because of increased plantings, Washington growers hope to cash in on the growing Chinese market even as the potential opening of the US market will possibly have them competing with Chinese brands at home.

www.freshplaza.com