Market News

Russia is a World Leader in Mandarin Imports, Despite a Drop in Volume

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Russia continues to be the world leader in terms of importing mandarins and their analogs (clementines, tangerines, satsuma, etc.) by a wide margin, despite the decline in volumes and imports observed in recent years.

In 2019, Russia imported 713,200 mt of mandarins, significantly less than in 2014 when the country imported 847,000 mt of these citrus fruits. However, the second place in the world ranking belongs to Germany, having imported more than two times less than Russia, namely, 346,000 mt of mandarins. Other leaders in terms of import volumes are France, the United States, Great Britain, and Ukraine.

Besides, unlike Russia, Ukraine continues to increase its imports of mandarins. In 2014, Ukraine imported 158,000 mt of mandarins and a record volume in 2019 of 180,300 mt.

Partially, this decline in imports of mandarins to Russia is explained by the so-called “anti-sanctions”: Russia cannot purchase fruits in the EU countries because of the ban. At the same time, Ukraine continues to buy large volumes of mandarins from the southern countries of the European Union, such as Spain, Greece, and Italy. Russia, in addition to Turkey, buys mandarins from Pakistan, China, Morocco, and Georgia, which significantly narrows the possibilities of importing premium quality fruits. Therefore, traditionally, Belarus is engaged in re-exporting citrus fruits from the sanctioned regions to Russia.

It is interesting to note that in the first ten months of 2020, Russia dramatically increased its imports of mandarins. Morocco provided the main increase in supplies: in 2020, deliveries of mandarins from Morocco to Russia increased by 59%. Pakistan and Turkey also increased their export volumes. Mandarins’ supplies to Ukraine also increased in 2020, but the growth rates of imports were lower than in Russia.

www.east-fruit.com

Georgia Exported over 7,800 mt of persimmons since start of season

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The Ministry of Environment and Agriculture of Georgia reported that Georgia exported 7,824 mt of persimmons (including the kinglet variety) from 1 August 2020 to 23 November 2020, which is up 14% than a year ago. In monetary terms, persimmons exports amounted to $4.2 million, which is 18% more than last year. Also, “during this period, the export price for persimmons increased by 4%,” the ministry said.

Russia received the most persimmons from Georgia at 3,377 mt (or 43% of the total export of this crop) followed in second place by Ukraine with 2,832 mt among export markets and Armenia in third place with 1,475 mt. Georgian persimmons are also exported to Belarus, Qatar, Moldova, Hong Kong, Kazakhstan, and Hungary.

According to official data, Georgia exported roughly 8,000 mt of persimmons in all of 2019. The main sales markets were Armenia (4,300 mt), Ukraine (2,700 mt), and Russia (800 mt). In monetary terms, exports amounted to $4.2 million.

Mass harvesting of persimmons in Georgia usually takes place from the second half of October to the second half of November. Persimmon fruiting in many modern orchards begins in September and continues for several months. Of note is that more than 100 hectares of intensive persimmon orchards were developed with the support of the state project “Plant the Future.”

Persimmons production has been growing in Georgia over the past 3 years. The harvest of persimmon amounted to 8,900 mt in 2017, 10,000 tons in 2018, and 14,300 mt in 2019.

The main regions of Georgia supplying persimmons to the market are the Kakheti region in Eastern Georgia, Imereti and Samegrelo regions in Western Georgia, and the Adjara region.

www.east-fruit.com

The share of imported vegetables in Russia may decrease to 10% in five years

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Over the next five years, the share of imported vegetables on the Russian market may decrease from 16% to 10%. This forecast is given by the Center for Industry Expertise of the Russian Agricultural Bank. According to the forecast, in 2019, 558,000 mt of tomatoes and about 100,000 mt of cucumbers were imported to the Russian Federation, and by 2025 the import of these products may decrease to 347,000 mt and 36,000 mt, respectively.

According to forecasts of the Ministry of Agriculture, this year the production of greenhouse vegetables will increase by 6.1%, to 1.25 million mt year-on-year, which will be a record figure. The Center for Industry Expertise of the Russian Agricultural Bank expects that Russian operators of greenhouse facilities will continue to increase production by an average of 7% per year. And the consumption of fresh vegetables in the country will grow by about 1% annually and will reach 115 kg per capita by 2028. Today it is  109 kg per capita.

Producers of greenhouse vegetables applied to the Ministry of Agriculture with a request to allocate 5 billion rubles from the budget of incentive subsidies to compensate for the part of the costs. As noted in the association “Greenhouses of Russia”, options for supporting the greenhouse industry needs to be intensified, as companies are faced with a decrease in consumer demand and the negative impact of the COVID-19 pandemic. As a result, the profitability of greenhouse operators fell to 5-7%.

www.kommersant.ru

The Main Buyer of Bielorussian Potatoes in H1 of 2020 was Ukraine, vegetables – Russia

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According to the Ministry of Agriculture and Food of the Republic of Belarus, in January-September 2020, the country’s organizations exported agricultural products and food products worth more than $4,2 billion, or 106,1% against the level of the corresponding period of 2019.

The export of crop products amounted to $363,8 million.

The most export-oriented are fresh vegetables – with a share of 44,5% of the total export of crop products, fruits and berries – 29,7%, potatoes – 7,7%, flax fiber – 3,6%.

The geography of export of crop products in January-September 2020 includes 39 countries of the world. The most volumetric supplies traditionally fall on the neighboring countries (the Russian Federation, Ukraine, Moldova, Kazakhstan) and the countries of the European Union (Germany, Lithuania, Poland, France).

Export of fresh vegetables amounted to 248,6 thousand mt. in the amount of $161,7 million. Vegetables were exported to 29 countries of the world, of which 78,5% – to Russia ($126,9 million), to Germany – 6,3% ($10,1 million), Lithuania – 4,9% ($7,9 million), Poland – 3,8% ($6,2 million) and other countries.

For 9 months of this year, 185,2 thousand mt of potatoes were exported to the amount of 27,9 million US dollars. The export geography includes 8 countries (Ukraine – 144,6 thousand mt, Russia – 29,2 thousand mt, Moldova – 10,1 thousand mt and others).

www.en.potatosystem.ru

Putin Extends Counter-Sanctions Until End of 2021

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Russian President Vladimir Putin signed a decree extending certain special economic measures against countries that have imposed sanctions on the Russian Federation until December 31, 2021. The document was published on Saturday on the official website of legal information.

The government has been instructed to ensure the implementation of the decree and, if necessary, make proposals to change the period of validity of these counter-sanctions.

In March 2014, due to the situation in Ukraine, the European Union and a number of countries, including the United States, Canada, Australia, Japan, Switzerland, New Zealand, Iceland, began to impose sanctions on Russia. In particular, it included sanctions lists of Russian individuals and legal entities. Restrictive measures included a ban on entry, freezing of accounts. In addition, the so-called sectoral sanctions were introduced: the assets of the companies falling under them were not frozen, but restrictions were imposed on medium and long-term lending.

In response, on August 6, 2014, Russian President Vladimir Putin signed a decree, based on which the Russian government imposed a ban on imports of a number of food products from the United States, the European Union, Norway, Australia, and Canada.

After the EU countries extended sanctions against Russia on June 22, 2015, on June 24, Putin extended the food embargo for another year. Subsequently, it was extended three times, most recently on June 24, 2019, until the end of 2020.

In June 2019, Putin extended counter-sanctions until December 31, 2020, and amended the norms of the original decree on counter-sanctions from August 6, 2014, and the decree from October 22, 2018, on counter-sanctions against Ukraine.

www.tass.com

Kaufland creates Moldovan food brand

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The international supermarket chain Kaufland has launched an ambitious project called “Vreau din Moldova” which translates to “I want Moldovan” in English and it is focused on supporting local producers in Moldova. This new product line will include Moldovan goods, which in the future may become especially popular with consumers.

The new brand will include both processed products and fresh goods such as dried fruits and nuts. For the latter, these products will come from southern Moldova, in particular the Gagauz region. It is there that the largest almond plantations are concentrated (approximately 1,000 ha), which is 70% of the total area of ​​almond plantations in the entire country. Additionally, the southern region produces walnuts and fruits such as plums as well as viticulture. Cooperation between farmers in the south tends to be more receptive compared to the central and northern regions of the country.

Moldovan almonds are currently exported to countries such as Romania, Iraq, and Azerbaijan. However, in the domestic market, Kaufland will be the first supermarket chain in which Moldovan almonds and products will be presented in a wide range and in large quantities.

Back in September, Kaufland-Moldova supermarkets started tasting and testing products in focus groups with consumers. The first contracts with Moldovan suppliers of nuts and dried fruits will be signed in February 2021, but only after the goods have passed quality certification (e.g., IFS, FSSC 22000) in Germany.

In 2020, the share of local products in Kaufland increased by 500 items totaling 3,700. Currently, the supermarket chain works with more than 100 Moldovan producers, one-third of which supply fresh vegetables and fruits. In the future, the bulk of these products will go through consolidators such as trading companies and agricultural cooperatives.

www.east-fruit.com

USDA Russia: Fresh Deciduous Fruit Annual Report

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Apples are one of the most popular and affordable fruits in Russia and with domestic production forecast to decline, imports will rebound in the 2020/2021 MY. Many commercial pear growers are replanting their orchards to apples to take advantage of this growing demand. Russia is the second-largest importer of pears and a major importer of table grapes as local production for these two fresh fruits is insufficient to meet demand. However, imports of pears and table grapes are expected to decline as the economic crisis continues and consumer purchasing power declines.

Since 2014, Russia’s countersanctions have banned fresh apple imports from Europe and the United States. This coupled with extensive support from the Government of Russia for the care and planting of new orchards has propelled investment in horticulture in recent years. In 2019, the Government of Russia financed a 311 billion Ruble (US$ 4.2 billion) support program for Russian agriculture.

Despite all this, several factors continue to constrain the development of Russia’s horticultural sector. First and foremost, Russia’s horticultural industry still lacks productive plant material. The Ministry of Agriculture estimates that in 2018 Russia produced around 24 million plants (including 15 million seed fruit plants). At the same time, Russia imported 25 million plants in 2018 and 21 million plants during the first six months of 2019. Very few nursery farms cultivate planting material for commercial orchards, and as a result, the quality of the planting material in Russia remains inadequate in terms of yields, winter resistance, and drought and disease tolerance.

As the ruble continues to weaken, Russian horticultural producers continue to face very high costs for importing planting stock, and other related items for cultivation, such as crop protection agents, technology, and equipment. A lack of qualified agronomists is another factor holding back the industry.

The current Russian trend of eating healthy has led to greater fruit consumption. Because of the COVID-19 outbreak, more people are paying attention to their health and eating patterns are increasingly favoring natural, healthier foods. According to analysts, the demand for vegetables and fruits increased during the COVID-19 pandemic. At the same time, the consumption of fruit is closely connected with household income and market prices. Russian disposable income has been declining since 2014, although there was some growth in 2018 and 2019, it is expected to drop again. In 2020, the decline in disposable income is forecast at 3 percent, according to the Ministry of Economic Development.

Full USDA report, containing information on the Russian harvest, import and consumption of apples, pear and grapes.

Republic of Georgia: Fruit and Nut Exports Soaring

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According to the National Statistics Service of Georgia (Geostat), the volume of exports of fruits and nuts from Georgia amounted to $69.68 million in value, from January through August 2020. The share of fruits and nuts in Georgia’s total exports for the reported period amounted to 3.4%.

The major part of exports accounted for hazelnuts – $28.30 million, peaches, including nectarines – $20.07 million, tangerines – $3.84 million, blueberries and other berries – $3.79 million, bananas – $2.28 million, oranges – $1.82 million, apples – $1.63 million, lemons – $1.15 million and figs – $950,000.

Compared to the same period last year, the export of fruits increased by 45.2%. In the first six months of 2019, the volume of exports of fruits and nuts amounted to $29.19 million. Their share in the total volume of Georgian exports was 1.6%.

Georgia exported 19,86 mt of apricots, cherries, peaches, plums, and sloes to Russia in a total amount of $19.3 million from January through September 2020.

From January through September 2020, the foreign trade turnover between Georgia and Russia exceeded $934.6 million, which comprises 11.5% of the total trade turnover of Georgia.

During the reporting period, Georgia exported products worth $308.6 million to the Russian market, which is 12.8% of total exports.

www.freshplaza.com

Russia’s Vegetable Production Has Grown by 6%

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According to the operational data of the regional governing bodies of the agro-industrial complex, as of October 27, 2020, about 5.3 million mt of vegetables have been harvested in Russia, which is 6% more than in the same period of 2019.

In winter greenhouses, 1.1 million mt have been grown, which is 18.2% more than last year (930.5 thousand tons). The harvest of greenhouse cucumbers amounted to 647 thousand mt (+14.3%) and that of tomatoes to 410.1 thousand mt (+18.6%). In spring greenhouses, 1.13 million mt of vegetables have been harvested during the period at hand. Lipetsk, Moscow, Volgograd, Kaluga, Novosibirsk, the Krasnodar and Stavropol Territories and the Republics of Karachay-Cherkessia, Tatarstan, and Bashkortostan are among the top ten regions leading the production of vegetables in winter greenhouses.

As of the above date, 4.15 million mt of vegetables have been harvested in the open ground. The biggest share corresponds to onions (22.3%), tomatoes (18.5%), cabbage (17.8%), and carrots (13.6%).

These results are a direct consequence of the support measures implemented by the state, which have contributed to the sector’s development. Within the framework of the incentive subsidies, the constituent entities of the Russian Federation have the right to choose priority areas, which allows the regions to provide additional support to growers engaged in the production of vegetables. There are also mechanisms of grant support for producers and cooperatives and a set of other measures being implemented.

www.freshplaza.com

Ukraine will Harvest Less Potatoes and Vegetables

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Gross production of potatoes in 2020 is expected to reach 20 million mt, vegetables – at the level of 9 million mt against 20,3 million mt and 9,7 million mt, respectively, in 2019 (data from the State Statistics Service).

This is reported by the portal “Economic Truth”, quoting the words of the Deputy Minister of Economy of Ukraine Taras Vysotsky.

Two concepts of the Ministry of Economy have been submitted to the Cabinet of Ministers for consideration: the concept of the industrial potato development program for 2021-2025 and the concept of vegetable growing until 2025, which will subsequently be submitted to a government meeting.

“In 2021, it is planned to introduce state financial support for the installation of drip irrigation systems and the purchase of materials necessary for such work. A separate program will also be introduced to support the potato growing industry in Ukraine, ”Vysotsky wrote.

en.potatosystem.ru