Market News

Retail will grow 5.5% a year

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According to the forecast of the social-economic development of the Russian Federation for the year 2012 and the planning period 2013-2014, prepared by the Ministry of Economic Development and Trade, the growth rate of the retail turnover in the years 2012-2014 won’t exceed 5.5% a year.

The growth dynamics of non-foods will advance the growth dynamics of food products. In comparison with the year 2010 the food products turnover will grow 8.4%, whereas the nonfoods turnover will grow 38.2% by the year 2014.

In the food products structure the sales of more expensive products will grow, such as meat and poultry, fish, cheeses, fruit, vegetables and berries. At the same time sales of bread and bakery products will decline.

Source: www.fruitnews.ru

Deputy finance minister Anton Siluanov will perform Alexey Kudrin’s duties

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After the dismissal of Alexey Kudrin the finance minister’s duties will be performed by his deputy Anton Siluanov, and the financial and economic sector will be supervised by the first vice-prime minister Igor Shuvalov.

Siluanov controls intergovernmental fiscal relations, as well as financing of the military-industrial complex in the Ministry of Finance. He has been working as deputy finance minister from the year 2003.

Source: www.dp.ru

The Finance Minister Alexey Kudrin has been fired

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The president of Russian Federation Dmitry Medvedev has fired the finance minister, vice prime-minister Alexey Kudrin. This is the most significant dismissal during the Dmitry Medvedev’s presidency. The reason was that Alexey Kudrin had announced that he wouldn’t like to work in the government that Dmitry Medvedev would form in May 2012, because he had some important disagreements, concerning expenditures on military ends.

Source: www.dp.ru

U.S. struggles to crack Russian stone fruit market

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Russia is the largest importer of cherries in the world and the second largest importer of peaches. Since 2005, cherry have increased more than twofold from 34,917 metric tons (MT) to a record 73,796 MT in 2010. Additionally, 228,200 MT of cherries are grown in Russia, including 162,500 MT of tart cherries in private orchards. In 2010, the import rate decreased to modest 3 percent compared with 19 percent growth in 2009 and showed negative growth during January – May 2011 period.

Imports are expected to be lower in 2011. Due to shipping advantages from the West American cherries have a limited niche in the Russian Far East. The demand for peaches and nectarines continues to climb. For the January-May 2011 period, imports went up by percent in volume and 157 percent in value, and seem to be on the way to breaking last year’s record. At this time, the States is virtually shut out of the market due to the length of delivery and heavy competition from European product.

U.S. share of the cherry market in Russia is negligible. In 2010, 97 MT of cherries were imported from the United to the Russian Far East, down twofold compared with 2009 due to the limited crop in the United States. Another limiting factor is the cost of delivery, which must be by air. However, with proper marketing, American cherries can find in upscale Moscow supermarkets, where the demand for expensive fruit is higher. American cherries have better, potential in the Russian Far East, where delivery in 21 days by ocean is feasible and higher prices on cherries.

Source: www.thepacker.com

World peach and nectarine production will grow 10% during the season 2011-2012

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During the season 2011/12 the world production of peaches and nectarines will grow 10 % and will make 18.1 million tons.

The world leaders in peach and nectarine production will be China with the production volume of 11.6 million tons (10% more than the last season), EU (almost 4 million tons-18% more) and USA (1.2 million tons—approximately the same volume as in the season 2010/11). Export of these fruit will also grow mostly due to the growing demand in Russia.

Russian Federation will become market №1 for the foreign suppliers, peach and nectarine import to Russia will grow 12% and will make 259 thousand tons.
www.fruitnews.com

The JFC Group has approved CJSC “Opera” as auditor for the year 2011

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The 19-th of September the special stockholder’s meeting of the CJSC “JFC Group” (St-Petersburg) has made a decision to make the audit work of the CJSC for the year 2011.

The audit work will be held by CJSC “Opera”.

Since the 1-st of January 2007 the main activity of the JFC Group has been the wholesale of the agricultural produce.

The JFC Group was founded in 1994. It is one of the vertically-integrated holdings in the sphere of fruit production and selling. Today the JFC Group unites companies of fruit production, purchasing, storage, transportation and realization.

The part of the Group of Companies JFC in the whole volume of bananas supplied to Russia makes about 25 %, and about 10% from the whole fruit import volume.

Source: www.fruitnews.ru

“Dixy’s” new marketing strategy is yielding favorable results

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The “Dixy” Goup, that belongs to the Igor Kesaev’s “Mercury” Group, has managed to raise the net profit 4.4 times until 554 million rubles during the first half of the year. The company’s revenues have increased 22%, until 37.4 milliard dollars. The gross margin of the “Dixy” Group has grown until 25.1% (contra 23.7 % during the first half of the year 2010), and the EBITDA profitability—until 6.6% (5.8%). On Tuesday “Dixy’s” share quotation on the MICEX has grown about 5%, almost 310 rubles for the paper.

According to the Alfa-bank analysts, the “Dixy’s” investments in logistics and new marketing initiatives are yielding favorable results.

In summer 2010 Danny Perekalsky has become the “Dixy’s” marketing director, and under his command the company has changed its marketing strategy. The quantity of fruit and vegetables in the assortment has grown a lot. Moreover, “Dixy” has changed the salesroom planning, the display of goods, and created a greater variety of products of its own merchandise marks. The retailer is planning to spend about 500 million rubles on renovations during 3 years.

Source: www.fruitnews.ru

Apples from Moldova dominate at the Russian market

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Nowadays apples from Moldova dominate at the Russian market. This situation is extremely unprofitable for Polish growers, because export apple prices and prices at the domestic market depend on the export volume to the CIS countries.

Russian importers prefer buying cheaper production, despite qualitative packing, graduation and homogeneity of Polish apples.

At the Moscow market prices on apples from Moldova vary within 23-24 rubles per kg, while apples from Poland cost about 33-34 rubles per kg.

Source: www.fruitnews.ru

The volume of world vegetable trade has grown 9 %

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In the year 2010 the quantum of world fresh vegetable trade has grown 9 % in volume terms. According to the materials of the marketing research of the world and Russian fresh vegetable market, the volume of world trade of potatoes and cabbage has grown most of all (12% and 15%). In general, potatoes, tomatoes and oniony vegetables dominate in the trade structure.

It is possible to say the same about the Russian fresh vegetable import. According to the calculations of the GLOBAL REACH CONSULTNG (GRC), tomatoes and potatoes make 23% of the whole volume of vegetables imported to the country. The vegetable import in the year 2010 has grown significantly, that is due to the slump of domestic production (the fresh vegetable croppage by the end of the year has shortened 25 %.

In order to elude the rapid price appreciation the government has even abolished the import taxes on potatoes and cabbage until June 2011. However, this measure hasn’t given the results expected, and the prices continued growing for all types of vegetables. During the first 2 months of the year 2011 the biggest price advance (by the level of January-February 2010) was observed on potatoes (+140% to the same period of the year 2010) and cabbage (+104%).

Source: www.fruitnews.ru

Russia: less import of traditional vegetables.

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Russia encourages foreign producers of traditional fresh fruit and vegetables for the sum of $5 milliards annually. This is the exact amount of fresh produce in monetary equivalent that is imported to the country, although such traditional vegetables as potatoes, cabbage and onions can be cultivated in the Russian climatic conditions. This evaluation of the industry was given by Tatyana Ghetman, head of Fruit-Inform Project, at the 4th International conference “Fruit & Vegetable Business of Russia – 2011” (in the frameworks of the World Food Moscow 2011, 13-16 September).

‘Russian growers have to develop their business in a very inhospitable environment: bank loans which are still difficult to access, annual growth of production expenses, and competition with imported production which intensifies gradually’, says Tatyana Ghetman.

Also, the expert remarked that according to all prerequisites, Russia will import very little due to the expected growth of its own production of the regular crops.

‘It is expected that we are going to reap an enormous harvest of potatoes, cabbage and onions this year. Taking into consideration the record low prices on the whole range of vegetables now and boom of storehouse construction across Russia and in neighboring countries, it is obvious that industry holders will face the only challenge of how not to suffer losses during the current season. And we are not touching upon the possibility of making money on storing’, Ghetman concluded.

Source: www.rgsco.ru