Berries market Russia

Morocco remains the biggest blueberry exporter to Russia

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Russia has increased its imports of blueberries by 61% (value) between January and June 2020. In fact, they reached 4.200 mt worth 30,5 million dollars. For the Russian Federation, Morocco is at №1 in the ranking of the main supplier countries of these fruits.

The Russians spent $13,7 million on Moroccan blueberries. They imported 1.900 mt of these blueberries from the Kingdom, 36,4% more than a year earlier. Chile, which occupies the second place in the ranking of suppliers, has more than doubled its shipments of “blueberries” to Russia, up to 1.000 mt.

Blueberriesconsulting.com explains this means, Morocco and Chile account for almost 80% of all imports of this agricultural product in Russia. The third and fourth largest exporters of blueberries to Russia are occupied by Peru and Serbia. In fact, these two countries increased their exports of this fruit to Russia by 75% and 95%, respectively.

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Berry Production in Russia Is Forecast to Decrease This Year

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As of August 4, the production of commercial berries in Russia amounted to 10,800 MT, which is 35% more than in the same period of 2019 (8,000 MT), reports the Ministry of Agriculture. Kabardino-Balkaria, Altai Territory, Oryol, Moscow, Lipetsk Regions, and Krasnodar Territory are the leading regions in terms of gross harvest.

However, industry analysts believe that this year’s overall harvest of the berries will be lower than in 2018. According to the company “Technologies of Growth”, the production will amount to 18,000 MT, compared to 18,700 MT a year before. According to the forecasts of the Berry Union, the berry harvest this year will be about 20% lower than in 2019.

The Southern District was affected by frosts and hail, so the gross harvest of strawberries in the Krasnodar Territory decreased compared to last year harvest. Rains also affected the quality and quantity of the crops. Due to the restrictions imposed during the coronavirus crisis, most berry producers dealt with a shortage of seasonal workers as they could not enter Russia from the neighboring countries. Many farms had difficulties with the sales and shipments of their products.

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The Ministry of Agriculture will Regulate the Market of Wild Plants

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The Ministry of Agriculture of the Russian Federation received the right to regulate the market of wild plants, according the government decree on the official website.

“The Ministry of Agriculture of the Russian Federation is a federal executive body that carries out functions for the development of state policy and legal regulation in the field of agriculture <…> including the issuance of food products obtained from wild fruits, berries, nuts, mushrooms, seeds and similar forest resources, medicinal and other plants”, according to the draft of the resolution.

The department assured that they did not plan to limit the gathering of wild berries and mushrooms, but to improve the quality and efficiency of market regulation.

www.fruitnews.ru

Russia’s VAT on Fruit and Berries to be Reduced to 10%

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The Government of the Russian Federation will reduce the VAT on fruit down to 10%. Prime Minister Dmitry Medvedev tweeted that he had decided to reduce the VAT on fruit and berries to 10%, as in his opinion, this should lead to lower prices and to the development of the domestic horticultural economy.

The Prime Minister said that the decision on whether to reduce the tax from 20 to 10% was made after a discussion with members of the government and deputies of the State Duma. Medvedev added that on July 10, during a visit to the headquarters of United Russia, it was agreed that the bill would be submitted by deputies to the State Duma.

The head of the Duma faction of United Russia, Sergei Neverov, said earlier that the bill was ready for submission to the Duma. He also said that all factions consider the issue of supporting fruit and berry producers as a priority, as Russian producers are yet unable to supply the volume that would cover the country’s needs.

Amendments are planned to be made to Article 164 of the Tax Code of the Russian Federation.

The preferential VAT rate of 10% applies to a specific list of goods, including meat, meat products, milk, dairy products, eggs, vegetable oils, margarine, sugar, salt, grain, animal feed, bread and bakery products, fish, seafood, baby and diabetic food. From January 1 of the current year, fruits and berries were taxed at a rate of 20%.

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