Apples from Moldova may do harm to apple growers from Krasnodar region

Growers from Krasnodar region, South Russia, estimate the loss of 2 billion rubles due to competition with Moldovan apple suppliers until the end of the year. In the end of July, Moldovan suppliers began importing apples and plums to Russia and they are cheaper than Russian ones. Domestic producers turned for help to the Russian Ministry of Agriculture. However, experts believe that the request to ban the import is unlikely to be satisfied.

22 July, Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) allowed 43 Moldovan companies to export their produce to the Russian market, and the produce is cheaper than the Russian one. As a result, domestic production remains unclaimed. So, the price of a Russian plum fell from 12-14 rubles per 1 kg to 5-7 rubles per 1 kg.

According to the Union officials, over the past two weeks growers only from Krasnodar region lost more than 120 million rubles. And the total losses of fruit growers from Krasnodar region are estimated to be more than 2 billion rubles till the end of the year.

At the same time, growers from Krasnodar region believe that so far they have successfully contributed to import substitution program. For example, according to their data, they have increased domestic production of seedlings of fruit crops by 2.7 times, and fruit production has increased by 45.2% over the past five years.

Rosselkhoznadzor said that it would be impossible to ban the import of Moldovan plums and apples now without any risks of biological kind. In the summer of 2014, Rosselkhoznadzor banned imports of vegetables and fruits from Moldova because they did not match Russian phytosanitary requirements. In mid-2015, the import was renewed on a trial basis, and the number of companies authorized to ship products to the Russian market, is gradually increased. In March 2016, Rosselkhoznadzor temporarily suspended imports of vegetables and fruits with the Moldovan phytosanitary certificates via Belarus to the Russian market because of the suspicion of re-exports of apples and pears from the European Union.

In 2015, Moldova exported to Russia 42,000 MT of apples, according to the Federal Customs Service. The total import of apples to Russia was 890,000 MT. Domestic production was about 600 000 MT in 2015. As for plums, Moldova takes the second place – 13,000 MT, the total import of plums to Russia was 60,000 tons, while Russia produced only 6,000 -7,000 MT.

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62% of Ukrainian apples exports shipped to Belarus

According to a marketing research “Apple market in Ukraine”, conducted by Alliance Capital Management, the biggest volumes of apples imported from Ukraine – 62% – were shipped to Belarus in the first half of 2016.

Georgia takes the second place – 11% of Ukrainian apple exports. It is followed by Moldova – 10% and Kazakhstan – 9%.

Belarus also imported the cheapest Ukrainian apples in the first half of 2016.

At the same time, Belarus successfully exports apples. In 2014, export of apples to Russia from Belarus increased by 104% up to 175 thousand tons, at the end of 2015 it increased already by 134% and reached 411 thousand tons.

According to Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor), the export of apples from Belarus has increased by five times after Moscow has introduced counter-sanctions. At the same time, the Federal Customs Service of the Russian Federation believes that this is a re-export of Polish apples, which are prohibited for import into Russia.

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Apple cultivation in former Soviet Union up

The apple production in CIS countries (former Soviet republics) has increased in recent years. Russia is still number one, and is also the fastest grower, according to official statistics. In the past five years, production is said to have increased by 45 percent. For other countries, the growth figures turned out lower: Ukraine +25%, Uzbekistan +35%, and the smallest grower Azerbaijan +15%. This year, the countries together are expected to harvest 5.5 million tonnes of apples, an increase of 60 percent over five years.

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Russian tycoon invests in apples and potatoes

Russian electricity and farming tycoon Dmitry Arzhanov has told the Reuters Russia Investment Summit that he plans to invest in apple and potato production, a direct response to Moscow’s embargo on food imports from Europe, the US, Canada and Australia.

The ban, which was introduced in August 2014 in retaliation against EU sanctions that were imposed following the conflict in Ukraine, has apparently led to new opportunities for domestic producers, but few have been able to capitalise as prices rise for items including fresh produce sold in the Russian market.

Arzhanov’s company AFG National, which has traditionally concentrated on producing rice and grain, is now planning to establish 300ha of apple orchards by 2016.

In seven years time, Arzhanov reportedly told the summit, around 2,500 ha will be under cultivation, producing an estimated 125,000 tonnes.

That figure represents around 10 per cent of the volume of apples that were imported from Poland prior to the ban.

Elsewhere, AFG National is said to be lining up a US $600m investment package to create what Reuters referred to as “a vegetable complex” that can produce 500,000 tonnes of washed potatoes per annum – equating to a quarter of Russian market demand – within the next five years.

“Russia’s government, faced with economic sanctions and the worst crisis in its relations with the West since the Cold War, has pushed the concept of ‘import substitution’ – domestic firms stepping in to fill the gap left by imports,” the Reuters report continued.

“That has worked in some sectors, but food producers, for years sidelined by powerful foreign competitors, have struggled to increase production quickly, people in the industry say.”

Arzhanov, who also co-owns the retail electricity supplier TNS Energo Group, said his investments in both apples and potatoes would be safe regardless of whether or not the embargo was lifted in the near future.

He also predicted that an extended ban lasting for the next two years would result in a downturn in investment within the Polish apple industry.

www.fruitnet.com

Start of apple harvest in Krasnodar

The apple harvest has kicked off in the Russian region of Krasnodar. The early varieties Geneva and Luch will be the first to be available at prices ranging from 40 to 55 Rouble (0.72 to 0.99 dollars) per kilo. The season started a week later than last year. Prices are on average 30% higher than in 2014, although expressed in dollars they are in fact 20% cheaper.

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Ukraine became one of the main channels of re-export of Moldovan apples to Russia

According to official data for the season 2014/2015, Moldova significantly increased its apple export to Ukraine. International trade statistics recorded a record volume of apple import from Moldova to Ukraine, it is about 6,500 tons. For the last 4 seasons Moldova did not export apples to Ukraine, and in the 2010/2011, the volume of imports did not exceed 29 tons.

According to experts, the only explanation for the sharp increase of Moldovan apple import to Ukraine is re-export to Russia. After the Russian food ban, Moldovan farmers were forced to seek alternative ways of entering the Russian market, where they usually sell most of their crop. Ukrainian products were banned in late October 2014, so from August to October, import thought Ukraine remained the most convenient way of apples re-export from Moldova.

At the same time, experts point out that the consumption of imported apples in Ukraine decrease almost by 3 times due to a sharp price rise.

www.fruit-inform.com

Import of apples to Russia fell by more than 50%

Import of apples to Russia decreased since August 2014, after the introduction of Russian food ban. The overall decrease was so considerable due to restrictions on imports of apples from Poland.

The biggest volumes of apples were imported to Russia in 2013, when 1,402,000 tons of apples were imported at a total value of 812.9 million USD. Poland accounted for 50.3% of the total volume. For 10 years, compared to 2003, the import of apples to Russia increased by 2.3 times, deliveries from Poland increased by 5.1 times during the same period.

During January-April 2015, the supply of apples to Russia fell by 51.5% (249,300 tons to 234,800 tons) compared to the same period of 2014. Beside the Russian food ban, weakening of the ruble also influenced the situation.

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Moldovan apples are allowed to Russian market

Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) allowed import of Moldovan apples to Russia. Moldovan apples were partially reopened to the market on February 26, 2015. Moldova was not part of the Russian Food Ban, however, experienced phytosanitary issues with the Russian Ag Ministry. According to press, Moldova is ready to supply 60 thousand tons of apples.

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Export of apples from Bosnia to Russia increased by 100 times

In the first nine months of 2014, apple imports from Bosnia and Herzegovina to Russia increased by 100 times, according to Russian Federal Service for Veterinary and Phytosanitary Surveillance (Rosselhoznadzor). The office suspected another Balkan country in the illegal re-export of banned products from the EU and now threatens to suspend deliveries of Bosnian fruit to Russia.

Rosselkhoznadzor may ban the import of fruits and vegetables from Bosnia and Herzegovina into Russia, if there is no explanation of the increase in exports from that country. This is stated in the message on the Rosselkhoznadzor site.

Rosselkhoznadzor note that shipments of banned products from Bosnia and Herzegovina to Russia has tripled; and imports of apples increased by 100 times for the first nine months of 2014. Rosselkhoznadzor experts doubt the authenticity of the phytosanitary certificates that accompany consignments.

Rosselkhoznadzor required that the Bosnian companies would present conclusions about the authenticity of a number of phytosanitary certificates for one week. Also, Rosselhoznadzor demanded to send the information about the ranges and volumes of fruits and vegetables grown in 2014 in Bosnia and Herzegovina.

www.top.rbc.ru

 

Apple prices will go up

The Association of Russian Gardeners thinks prices for apples will go up. Their estimation amounts to 60 roubles (1.20 Euro) per kilo. According to the association’s chairman, the supply of apples is insufficient for meeting demand during the entire season. Starting early 2015, a shortage of apples is expected. Storage facilities are also insufficient, slowing down production. According to the organization, total apple consumption is 2 million tonnes per year, while domestic production amounts to 500-600,000 MT. Usually, domestic cultivation was on the market until December, after which the apples were imported; mainly from Poland and Moldova.

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