Russia Bans All U.S. Food Imports and E.U. Fruits and Vegetables

Yesterday, the President of the Russian Federation signed an Executive Order On Applying Certain Special Economic Measures to Ensure the Security of the Russian Federation. This basically means an embargo on importing entire categories of products from those countries which have declared economic sanctions against Russian organisations and individuals.

Russia has completely banned the importation of beef, pork, fruits and vegetables, poultry, fish, cheese, milk and dairy products from the European Union, the United States, Australia, Canada and the Kingdom of Norway.

These restrictions shall be introduced starting today, and for a period of 12 months. But, if Russia’s partners display a constructive approach towards cooperation issues, then the Government would be willing to revise the specific implementation deadlines for these measures.

www.government.ru

Boycott harmful to Russia and EU

Tensions between the EU and Russia are increasing. Russian interference in the political turmoil in Ukraine and the alleged presence of Russian troops in the Crimea, led to the EU imposing sanctions against Russia. At the time this article went to press, there was as yet no official reaction from Russia. However, the EU already announced further sanctions. And although political responses are difficult to predict, the tensions also affect the European fruit and vegetable sector.

“We have to wait and see what impact this will have, and whether counter restrictions, are to be expected,” says Inge Ribbens of Frugi Venta. “Until now, fruits and vegetables are still exported. Potatoes have an import ban, but the sector isn’t affected yet.” Arjan Zoutewelle of the same import and export company, sees tensions rise. “I noticed that the sector, say forty percent of it, is nervous, and that there is uncertainty about the devaluation of the ruble. In the long run, a low ruble is not good for business. In Russia, imported products are therefore more expensive.”

If there is a threat to domestic crops or human health, boundaries are often closed, but there may also be a political agenda behind a boycott. In February, Romain Cools of Belgapom suspected a political agenda behind the potato import ban on Russia. He then said: “Russia is not only closed to the potato and the seed potato sector, but now European pork is no longer allowed in. The Russians found an alternative with American pork, which increasingly seems to point to a political motive.”

Exports to Russia mainly consists of products such as machinery, chemicals and processed products. About eight percent of exports consist of food and live animals. Fresh produce makes up the biggest part. In general, a boycott of European fruit and vegetables to Russia may be more problematic than in Europe, expects Arjan Zoutewelle. The world can’t always meet Russian demand. It also depends on the countries and products that fall under a boycott. More worrying is when the Russian border is closed and there is a good harvest in Europe. “If there is a boycott, we better not have over-production in Europe, because then we really need Russia to buy our production peaks.”

www.freshplaza.com

Possible ban from Russia big problem for EU exporters

With Russia being a large importer of fresh produce, the current political situation between European nations and Russia could have significant ramifications for European exporters. The threat that the political climate could negatively impact their business has many European shippers hoping for a quick resolution to any political issues EU countries and Russia may have.

“If Russia bans any European produce, then it’s obvious that this will be a big problem for exporters currently working with Russia,” said Eric Guasch, President of AFRAA, an organization dedicated to promoting trade between the two nations. AFRAA is already working to lift the Russian ban on European potatoes and pork, and any further restrictions on European products would further hurt the continent’s shippers.

As for Israeli exporters, any action taken by Russia would only have an impact on some commodities, explained Rafi Zuri of Galil Export in Israel.Also Spanish kaki fruit from Spain would suffer, which will probably be a benefit for Sharon  fruit from Israel in winter, as they compete on persimmon during the winter. Other commodities wouldn’t have an advantage. Part of that has to do with the competition Israeli exporters face from Turkish exporters. Because products from Turkey are cheaper, and the Russian market prioritizes low-priced produce.

But throughout most of Europe, worries are much more prevalent, and the feeling is that any ban would eventually hurt Russia as well as Europe. Because of the potential impacts the current situation could unleash on those working in the fresh produce trade in both countries, everyone hopes political tensions can be resolved quickly.

www.freshplaza.com

Domestic seeds will help lessen EU dependance

Russia lives in vegetable dependence on Europe where all seeds are purchased. The Federal Service for Veterinarian and Vegetation Sanitary Supervision (Rosselkhoznadzor) repeatedly threatened the European Union with the ban on import of seed grains. In fact, it means digging its own grave. “Without seed potato coming from foreign countries we can pull through only for one year, then everything that involves vegetables will come to a halt,” Vitaly Dunin, the chairman of the Sverdlovsk Union of Producers and Processors of Potatoes and Vegetables, told RusBusinessNews.

According to Dunin, the domestic seed industry was destroyed in the 1990s-2000s and now is in the embryonic state. The Belorechensky Agro-Industrial Complex, CJSC, headed by Dunin, purchases high yielding potato hybrids from the Netherlands. The Dutch grow their seed potatoes in the most agriculturally favorable areas in Italy, Africa and Spain, sorting them by color, quality grade and size.

The Sverdlovsk Region is ready and willing to get out of the European bondage. The Belorechensky Agro-Industrial Complex, together with Kartofel, LLC, and the Agriculture Research Institute of the Russian Academy of Agriculture, prepared a business plan for the breeding center that will allow farmers to reduce their potato seed import by 50% or more. The cost of this center is 300 million rubles. The initiators of the project expect that the federal and regional government authorities will chip in together and allocate 100 million from each side. The Sredneuralsk government gave the go-ahead to the idea, which is now being scrutinized at the Russian Ministry of Agriculture. If everything works out, the breeding center will start operating in 2014.

Source: www.freshplaza.com

Russia increases fruit and vegetable imports from CIS

Last year Russia imported 200,000 tones of fresh fruits, vegetables and dried fruits from Uzbekistan worth about $300 mln. Uzbekistan’s fruit and vegetables export volume to Russia exceeded export volumes of such traditional suppliers of the Russian Federation as Poland, China, Spain, Argentina, Morocco, South Africa and Italy. Ukraine is strengthening its positions in the Russian market for fruits and vegetables too.

Ukraine has already outstripped Spain, Egypt, Belgium, France and Germany in export value of vegetables to the Russian Federation. Russia is also increasing imports of Ukrainian apples. “In the season 2010/11 Ukraine entered the group of top-four biggest suppliers of apples to Russia and outstripped its major European competitors such as the Netherlands, Italy, Germany, France, Serbia, Belgium and Hungary”, Tetiana Getman, Head of Fruit-Inform Project, said during the First International Conference “Apple Business of Ukraine, Russia and Moldova – 2011”.
Azerbaijan’s Ministry of Agriculture also expect the country’s exports of fruits and vegetables to Russia to grow by 20-25%.

Source: www.freshplaza.com

Vegetables safety agreement signed between Russia and EU

The European Commission officially reported that on June 22 Russia and the EU signed an agreement, which allows to immediately resume shipments of vegetables from European farms to Russia.

Under this agreement European vegetables will have to undergo special carantine control and receive a correspondent certificate to confirm their safety.

As per the European Commission 1.1mln tonnes of European vegetables is exported to Russia annually with total value of 600mln euros. They account for 20% of all the vegetables imported to Russia.

Source: www.fruitnews.ru

Vegetable export to Russia still non-existent

President Medvedev said last week Russia was prepared to resume vegetable imports, provided the governments involved could guarantee the origin, manner of cultivation and controls. “At the moment, however, no vegetables are being exported to Russia” Paul van Ravenswaaij of Ravex International from Holland says.
The export of fruit to Russia continues as usual, but the level is low. Alexander Visser of Alexport, Holland: “Especially greenhouse vegetables suffer. It is of course the correct period to export Dutch greenhouse vegetables. I can have a hundred trucks, which returned fully laden from Russia. This is a massive problem for the Dutch fruit and vegetable trade”.
Source: www.freshplaza.com

EU voices ‘dissatisfaction’ on Russia’s food ban

The EU executive voiced Wednesday ‘profound dissatisfaction’ over Russia’s failure to lift a blanket ban slapped on EU vegetables due to Germany’s killer E. coli bacteria outbreak. Moscow had agreed on Friday to lift the embargo after two days of summit talks between EU Commission chief Jose Manuel Barroso and Russian President Dmitry Mededev.

The European Union had reacted furiously to Moscow’s ban on vegetables from the 27-nation union, calling it disproportionate and scientifically unjustified, and demanded it be immediately lifted. Vegetable farmers across Europe are claiming immense damages in the fallout from the bacteria outbreak, which to date has killed at least 37 people, including its first child, who died on Tuesday.

Source: www.freshplaza.com

Russia Did Not Impose Ban on European Berries Import

Speaking after a summit with an array of top EU officials in the Volga River city of Nizhny Novgorod, 400 kilometers (250 miles) east of Moscow, Russia’s President Dmitry Medvedev said the country will be ready to lift the ban after receiving the safety certificates from the EU.

Russian officials had said before the summit the ban will only be lifted once the EU determines what caused the outbreak and how the bacteria spread.

Despite the expressions of hope over the lifting of the ban, there’s still uncertainty as to when it will actually be done. Gennady Onishchenko, Russia’s top sanitary official who attended Friday’s summit, wouldn’t say when the ban could be lifted, signaling that it could take longer than just a few days. He also denied the fact that Rospotrebnadzor had forced retail chains to withdraw European berries from circulation. There was no official ban on berries import from the EU countries.

Source: www.freshplaza.com

Russia to Lift EU Vegetables Ban by June 9

While Russia is trying to satisfy the local demand for vegetables with domestic fresh produce, EU proposes millions in aid for farmers. The European Union’s (EU) farm chief on Tuesday proposed euro 150 million ($219 million) in aid to help producers hit by the continent’s E. coli contamination crisis.

Rusisa’s Ambassador to the European Union Vladimir Chizhov says in a statement that Russia hopes that the issue of EU vegetable import ban will be settled by the Russia-EU summit that’s due in Nizhni Novgorod on June 9 and 10. Moscow imposed the ban on vegetable imports last Thursday following the appearance of numerous cases of a dangerous enteral infection in Europe.

The EU said the Russia-made move is disproportionate to the degree of the threat. But Chizhov stressed the point that no financial losses can be compared with human life.

Source: www.freshplaza.com