Fruit and vegetable ban

Russians are saving on food, clothes and entertainment

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Consumers are saving on food, clothes and entertainment, choosing less expensive products. 75% of the respondents are going to save on New Year presents and food. However, 9% are investing money in expensive goods such as electric devices, home utensils or real estate.
70% said that they had revised their spending patterns, 40% began to buy less expensive goods.
People are adapting to the inflation, the share of budget spent on food is growing, therefore, the share of money spent on non-food products is decreasing.
The forecasts of the official economists for the next year are not optimistic either.

www.retailer.ru

 

Volga Group purchased 40% of Alma Group Company

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Volga Group Company has acquired 40% of the shares of Alma Group, the company specializing in cultivation of apples. Other shares still belong to the founder of the company, Jean-Claude Mann.

Production facilities of Alma Group are located in Abinsk (Krasnodar region), where the company operates on over 800 hectares of land. There are refrigeration units and warehouses, processing and sorting factories, owned by the company. In 2013, the production output exceeded 6,800 MT of apples. Nevertheless, the company plans to increase production up to 12,000 MT of apples per year. Moreover, the range of fruit and vegetables is likely to be expanded.

This is our first asset in the agricultural sector. I am sure this investment will contribute to the development of the company, – has said the shareholder of Volga Group Gennady Timchenko.

Volga Group is 100% owned by Gennady Timchenko, combines his assets in Russia and abroad. Timchenko owns 23% of Novatek, 15.3% of SIBUR, 80% of Transoil, 63% of Stroytransgaz, 30% of Kolmar, and other assets.

www.freshplaza.com

Real wages decreasing in Russia

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Economist Dmitry Prokofiev in his interview to the internet portal dp.ru told about the current economic situation on the Russian market. For the first time since November 2009, there is a wage decrease in Russia. 5 years ago, the growth of wages was presented as a sign of overcoming the economic recession, but now, for some reason, no one says that the wages decrease is a symptom of a new recession.

Wages have been decreasing for 2 months already. On an average, in September wages went down by 1%, in August – by 1.2%, but in some industries they decreased by 4-5%.

Retail trade also slowed down, in the first quarter it increased by 3.6%, in the second – by 1.9%, and in the third – only by 1.4%.

At the same time, inflation is growing. In September, the official inflation rate in Russia was 8% (that is the highest rate for the last 3 years). The fastest growth of prices can be seen in food sector. During January-September 2013, the inflation rate in this sector was 2.2%, this year it is 7.1%. Car production in Russia, the growth of which we saw recent years, in September fell by 18%.

The Russians began to buy less. According to Romir agency, in September 2014 everyday consumer spending decreased by 6% in nominal terms compared to August 2014. Non-food consumer goods sales decreased by 17%. At the same time, the Russians began to buy more electronic devices, while prices for them are still the same.

Even the Russian market of luxury goods decreased (the recession if 2008-2009 almost did not influence it). In 2013, it was 10th in the world and fifth in Europe, but this year, as analysts predict it will decrease by 18%.

www.dp.ru

Apple prices will go up

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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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Russia State Duma introduces quota to cap foreign products on domestic store shelves

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Deputies of the Moscow region initiated a project to introduce quotas on product imports in Russian stores. In the future, according to the deputies, the share of foreign goods at grocers is not exceed 50 percent. The law could affect all retailers.

Deputy of the regional Duma of the Moscow region Nikitai Chaplin, who is one of the authors of the amendments to the law on “trade”, also said that it was the repeated appeals from domestic producers, who said that they were being discriminated against by networks, that inspired the idea.

The countries of Belarus and Kazakhstan have also fallen under the category of “importing countries”.

“After the sanctions were implemented, trade networks are simply replacing some imported goods on their shelves with other (imported goods). For example, European and Brazilian goods. Russian producers are not winning as a result of the accepted government measures,” Chaplin said.

Andrey Karpov, executive director of The Retail Companies Association, said: “in Russia, there are not enough domestic producers that could ensure trade networks of the quality of their products as well as the security of supply, which often leaves much to be desired”.

The share of goods imported by premium-class supermarkets currently amounts to no less than 65 percent. For other trade outlets, the share of imported goods is about 50 percent.

www.fruitnews.info

New food retailer to open in Vologda region, 200 stores by 2018

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The Governor of the Vologda Oblast, Oleg Kuvshinnikov, announced plans for a new food retail network to appear in the region. The retail network will boast the brand name Nastoyashiy Volgogradskiy Produkt.

The number of stores across the area is to reach as much as 200.

“In the regions of the Vologda Oblast, there are already 15 of these stores opened under the brand name Nastoyashiy Volgogradskiy Produkt. By 2018, we have agreed that there will be more than 200 stores and they will open in each municipality. This is indicative of the growing grocery patriotism of Vologda. People understand that this is a guaranteed quality, it’s the environment, it’s the lack of preservatives and dyes.

Kuvshinikov also added that 52 companies and producers received certification to supply these trade points.

“The products under the label Nastoyashiy Volgogradskiy Produkt are currently supplied to 14 different countries and to more than 30 regions in Russia. We went to almost every major federal retail chain. A federal network such as the PiR Food and large supermarket Utkonos, we entered into a direct agreement for supplies,” the governor said.
www.fruitnews.info

Serbia increased the shipments of the apples to the Russian market almost by 6 times

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According to industry experts, Serbia has increased the shipments of the apples to the Russian market almost by 6 times since the beginning of the season.

According to the Russian Federal Statistics Service, in the first two months of the season 2014/15 Serbia shipped to Russia more than 8,000 tons of apple, while during July-August 2013, the shipment of apples from Serbia to Russia amounted to 1,400 tons.

According to the experts, Serbia managed to increase supplies to the Russian market mostly due to the Russian food ban as a substitute for apples from Poland and Moldova. The experts do not exclude that Serbia has a chance to become one of the main suppliers of apple on the Russian market provided that the ban will continue.

www.freshmarket.ru

Russia will not allow the import of prepaid products

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Russia will not revise its decision on the ban of the import of prepaid food products. PM Dmitry Medvedev said that in an interview to “Russia 24” on September 21.

Prime Minister called all the losses incurred in this case force majeure.

“That is a force majeure, which exists in any state. The question is closed, we are not going to revise it” – said Medvedev.

www.fruit-inform.com

Argentina: Exports to Russia will amount to 2 billion dollars in 2015

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The Minister of Industry, Debora Giorgi, will returns to Argentina after closing this week’s trade mission to Russia, which involved more than one hundred Argentine companies.

“We are pleased with the performance of Argentine companies in the World Food Moscow fair,” the official said in a conversation with Radio Del Plata on Wednesday. She also said that shipments from the poultry industry, the producers of fine fruits and of dairy products were already arriving to Russia.

The ban imposed by the government of Vladimir Putin on the food products of the countries that opposed Russia in the conflict in Ukraine created an opportunity for Latin American producers.

Argentina also achieved negotiated the remaining harvest of pears and apples to Russia, a product that might have been sold at a lower value to another destiny if it wasn’t exported to that country, the minister said.

According to industry estimates, the ban creates the opportunity of exporting products to Russia for $750 million dollars, apart from the other $900 million dollars of products not covered by the ban, such as wine, bread or adds oils.

“Shipments of poultry, apples, and other products have already started to arrive. Businesses with Russia are already in place, and we need to sign longer-term contracts,” said Giorgi. Additionally, Russia’s third biggest importer of high quality fruits and vegetables plans to open an office in Buenos Aires to stock up on berries, cherries and other products. “It will be open before the end of the year,” Giorgi stated.

In 2003, Argentine exported USD $200 million to Russia. This year’s exports will amount to 900 million. “We will double that amount next year because we export perishable goods and are out of stock, but we will have new crops next year. Thinking we will achieve exporting $1.8 or $2 billion dollars is conservative,” said the Minister.

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Rouble reaches new low

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The Western sanctions appear to be having more and more effects on the Russian economy. The value of the rouble reached a low point compared to the dollar on Monday. On Monday, the rouble reached a new low compared to the dollar: 38 to 1, which is 1.3% lower. The Russian government is planning to close more trade deals in roubles, in order to limit dependency on the dollar in global trade. Investors favour more stable currencies.

In addition, Central Asian countries seem to have reacted with a bit too much enthusiasm to the Russian boycott. Many countries announced to significantly increase export, but reality turns out to be more complicated. The countries are unable to increase export on such short notice. Besides, experts warn that the proclaimed boycott will remain in effect for a year; a relatively short period. The question also remains whether these countries are able to increase domestic production on short notice. Also, growing exports also put more pressure on the domestic market, which could cause prices to go up there. Within the Central Asian countries, criticism can also be heard. Expanding the agricultural sector requires time, and there’s doubt whether exporters will give up their relations for a year of export to Russia. And then there’s the low quality of produce, do Russians actually want that? Finally, some of these countries don’t produce enough to meet domestic demand, and are importing from countries like Pakistan and Afghanistan.

Israeli minister Shamir remains optimistic about the chances given to the country by the boycott. According to the minister, the country is able to supply techniques as well as products, to build up domestic cultivation.

Russia is on the lookout for new suppliers of the banned products, and Israel is looking for new markets. That Israel can profit from the boycott has been known for a while, but the statements from Israel minister Yair Shamir in Russian media are interesting. He called the boycott a big opportunity for Israel. The minister also expects trade between the countries to continue after the boycott, “it’s cheaper, more stable and there’s no political price tag attached.” Israel also won’t answer to any European requests to support the sanctions. “Remember that the EU imposed sanctions on us recently. They boycott us, and then want us not to help someone else? They can’t do that.” Israel has more to offer to the Russians than produce alone, by the way. The country is also willing to supply knowledge, and to help the Russians set up production lines in order to become self-sufficient

www.freshplaza.com