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