Market News

No problems with vegetable storage faced in Ukraine and Russia for the present

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Too low prices remain the main problem for Russian and Ukrainian vegetable producers. The quality is still satisfactory though. This is indicated by Fruit-Inform’s mini-survey of vegetable growers in Ukraine and Russia. At the same time, farmers think that a slight temperature drop will only profit them. If the temperature remains relatively high in the second half of winter, farmers will most likely not avoid quality decrease of vegetables in unequipped storage facilities.

To attract purchasers some farmers are ready to lower prices, which haven’t changed in the last 2 weeks. This situation fully corroborates Fruit-Inform’s forecasts made at the Eighth International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter”.

Source: www.freshplaza.com

More than 50% of Russian retail managers don’t expect any changes in the economical situation

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According to Rosstat (Russian State Statistics Service), more than 50% of Russian retail managers don’t expect any changes in the economical situation in retail in Q1 2012.

However, around 30% of the polled trade companies are expecting the retail turnover to increase in Q1 2012, 25% are going to raise the sales volume, supply and the range of sold goods. At the same time 25% of undertakers expect revenues growth, and almost 50% – further price growth, 6% are planning to raise the trade mark-up.

In Q4 2011 the average level of trade mark-up was 27%, like in 2010.

Source: www.retail.ru

Consumers demonstrate moderate activity before the New Year

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For the first time in the last few years consumers demonstrate moderate buying activity and growth rate reduction can be seen. This trend is more obvious in St. Petersburg than anywhere else.

This autumn Russia has seen consumption growth reduction. Russians have become more reasonable when planning personal budget and citizens of St. Petersburg have been the most moderate in their expenditures.

The first  evidence of the alarming trend appeared at the end of October and were most definite in November. In November expenditures grew by only 2% in comparison to October, whereas in the last two years the growth during this period was 5-6%.

Consumers started to buy only the required amount of goods and retail chains will have to face the new stage of competition: clients will be acquired by means of raising service quality.

Source: www.retail.ru

Morocco wants to export more citrus to Russia

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Russia imports more than 8.5 million tonnes of fruit and vegetables annually. Of this, less than 4% is from Morocco. Although the Moroccan export figures show a rise in fruit and vegetable export, the export is only 3.6% of the market share. Citrus is the most important product with 92% of the market share.

But there are new perspectives for the Moroccan export to Russia. Recently a Russian delegation visited Morocco to view the route the citrus follows and mainly to view the phyto-sanitary checks.

Morocco does have a checking system, that has been approved by the EVO. But Russia has not yet recognized this and has therefore been invited to see the checking system on the site. According to the national bureau for food safety the delegation was visibly surprised by the level of the system. However the definitive publication report of the Russian delegation remains to be seen.

Source: www.freshplaza.com

Chilean Kiwi gains ground in Russian market

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According to Chile’s agricultural attaché in Russia, Pablo Barahona, Chilean kiwifruit is gaining importance in the country, and is very well-regarded by the importers. However, Chile has a great task as an industry, which is to improve the perception of the product. “Russia became our main market destination in Europe after Britain. Currently we are, in the Russian market, one of the leading suppliers in different products and therefore it is a very interesting niche.”

Pablo Barahona said, they are studying the feasibility of finding ways of collaboration between Russian and Chilean producers. Last month they began to work in the town of Sochi on the shores of the Black Sea and have already had the first harvest, with fruits of average size of 80 grams, reaching production expectations.

Source: www.freshplaza.com

High Court freezes Russian fruit multi-national Joint Fruit Company’s worldwide assets

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The English High Court has today issued a worldwide freezing order against Russia’s largest fruit multi-national, JFC Group Co. Ltd (“JFC”) of St Petersburg (owned by Mr Vladimir Kekhman). In August 2011 the High Court in London awarded reefer ship owner STAR Reefers USD16.5m, plus legal costs and interest, against charterparty guarantor JFC, following the unlawful early redelivery of three ships and wrongful termination of the charters by JFC’s chartering arm Kalistad Ltd of Cyprus. JFC have not appealed the judgement and it is now final. JFC have failed to pay the judgement sum. On 6 September 2011, the judgment debt against JFC was registered with the UK Government’s Registry Trust, which is publically searchable by banks, rating agencies, lenders and creditors.

As a result of JFC’s failure to pay the judgement debt and breach of other court orders, on 10 November 2011 the High Court ordered JFC to disclose details of all of their worldwide assets with a value exceeding USD 25,000 and any transactions between JFC and its associated companies. Because of JFC’s continuing failure to comply with court orders and due to evidence that assets may have be transferred between offshore companies to frustrate creditors, on 16 December 2011 His Honour Judge Mackie QC issued a worldwide freezing order in the sum of USD 21m against JFC’s assets.

JFC’s banks including Royal Bank of Scotland, Citibank, Nordea, VTB (Deutschland), Gazprombank, Raiffeisen, Sberbank, UniCredit, Amsterdam Trade Bank, Banque Societe Generale, Commerzbank, and Bank of Moscow have been notified of the Court Order.

Source: www.freshplaza.com

X5 Retail Group may start direct import of fruit and vegetables

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As per RBK daily, Russian largest retail operator is considering a possibility of direct fruit and vegetables import, excluding distributors from the supply chain. The appropriate decision may be made within the next few months. X5’s main rivals – Magnit and Dixi – have been importing fruit and vegetables independantly for more than a year. The share of fruit and vegetables in the total revenue of a retail chain may reach 12%.

X5 may start direct import of fruit and vegetables in a few months after the company has finished the calculations. Traditional suppliers are Turkey, Africa, South America and Europe.

Source: www.retail.ru

Russian retail market expected to exceed $800bn in 2013

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In 2010, the Russian retail market recovered after the economic slowdown observed during the previous year and increased by 12.9% to RUB 16.5tr ($543.5bn). However, PMR predicts that in the next few years the market is unlikely to re-establish the pace achieved before the crisis.

PMR expects that there will be double-figure growth in the industry from 2011 onwards. However, in the short term the market is unlikely to witness the rate achieved before the crisis. Despite the improving economic conditions and relatively positive forecasts for the next few years, the situation on the Russian retail market still falls short of expectations.

The X5 Retail Group, which operates the Pyaterochka, Perekryostok and Karusel grocery stores, remains the leading retailer in terms of revenues in Russia. In addition to the double-figure year-on-year increase in total sales, there was a 7% increase in the company’s like-for-like sales in 2010.The Tander Group, a grocery retailer, occupies second place among the largest retailers, and is followed by the Auchan Group.

In 2010 the top 20 retailers accounted for about 11% of the country’s total retail sales value. The three largest players (the X5 Retail Group, Tander and the Auchan Group) controlled almost 5% of the market.

Source: www.freshplaza.com

Imported fruits and vegetables still preferred by Russian retailers

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Notwithstanding solid overproduction of vegetables in Russia, retailers still prefer to purchase imported produce. This information is regularly reported to Fruit-Inform by Russian producers, who try to come to an agreement with supermarkets about supply of their produce.

The quality of local fruits and vegetables leaves much to be desired. Even taking into account its lower prices, domestic produce often cannot compete with graded, washed and packed imported fruits and vegetables.

Source: www.freshplaza.com

South African grapes struggle to reach Russian market

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Export Company Pomona Fruit SA has been offering grapes into the Russian market from the first week of November. However it is clear that the Russian market is extremely nervous with regards to the high levels offered by the South Africa and Namibian exporters in general, and penetrating this market segment is also a frustrating procedure.

The Russian market is still well supplied by Peruvian, Brazilian & Californian products, and for an importer to make the mental leap from the lower selling prices in a sluggish market to having to commit to the high levels from South Africa and Namibia is tedious and in most cases very risky.

After a tumultuous citrus season where many Russian importers and exporters were both hit hard by the adverse market conditions, all parties seem to have taken a back seat in confirming orders. At the moment the Russian market is not buying considerable volumes from South Africa, and most likely this trend is set to stay for some time.

Source: www.freshplaza.com