Import

Russia imports of mandarin and grapefruit on the increase

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Russian citrus imports rose by 6% last year compared to 2012. The markets for mandarin and grapefruit in particular show high growth rates, respectively 40% and 34%, reports the Russian website fruitnews.ru. Turkey and Morocco traditionally are the two main citrus suppliers, but have to surrender a part of their market share to South Africa and Egypt. A striking newcomer on the mandarin market is Georgia.

Russia imported 1.7 million tons in 2013, accounting for 1.68 billion dollars. An increase of 6% compared to the year before. The main suppliers of citrus are Turkey and Morocco, accounting for 40% of the total volume. Egypt is third, followed by South Africa and China. The first EU country on the list is Spain occupying the sixth place. Cyprus and Greece are good for respectively the eleventh and twelfth place.

Mandarins and oranges are the most popular citrus fruits amongst the Russian consumers. Last year Russia imported more than 838,000 tons, accounting for almost half of the total citrus import. The largest mandarin suppliers are Turkey and Morocco. Although the volume from Morocco decreased compared to the previous years, the volume from Turkey grew. Together both countries account for half the mandarin supply. Other major suppliers are China, Pakistan, Spain, Argentina and Abkhazia. In October 2013 Georgia was allowed to supply the Russian market and ended up twelfth on the list with 12,000 tons.

Oranges were mainly imported from Egypt and South Africa. Volumes grew to 70% of the import. In total Russia imported 500,000 tons of oranges. Other major suppliers of oranges were Turkey, Spain and Morocco.

Grapefruit import grew by 20% compared with 2012 to 147,000 tons. The largest supplier of this citrus fruit is China, followed by Turkey, South Africa and Israel. The rise in consumption is due to media attention.

In the first quarter of this year, import fell by 11% to 577,000 ton. Key suppliers are Morocco, turkey, Egypt, Pakistan, China and Spain. New comer Georgia exported 2.6 tons of mandarins to Russia.

Expressed as a percentage, the market share of the export countries is stable. Turkey is on top of the list with 24.6%, followed by Morocco (14.5%) and Egypt (14.1%). In recent years the import of mandarins increased by almost 40% from 605,000 tons in 2010 to 838,000 tons in 2013. The import of grapefruit is also on the rise, growing 34%. In 2010 109,000 tons was imported, in 2013 it rose to 147,000 tons

The orange import grew with 5% from 478,000 tons in 2011 to 504,000 tons in 2013. The volumes from Egypt and South Africa are growing at the expense of Morocco and Turkey.

www.freshplaza.com

Boycott harmful to Russia and EU

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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

Russia doubles strawberry imports in March

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This year’s latest figures show that Russia has imported a large quantity of strawberries during the month of March, which have been devoted to the local market. This volume doubles the amount imported in February 2014.

Over 5,000 tonnes of strawberries were shipped to the Russian market in March, which more than doubles the volume purchased in February, which was of 2,000 tonnes. Russia’s main strawberry supplier was the European Union, which accounted for 83% of the shipments. Egypt stood second, followed in third place by China.

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Russia: imported product prices increase by 15-20%

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Higher School of Economics (HSE) warns about a soon price increase on imported goods as well as on goods produced with imported raw materials. All details are reflected in a report called “About business climate condition in retail sector in first quarter of 2014…”.

“Retailers are expecting a further weakening of ruble. Imported goods which were bought at earlier exchange rates hold out only few more months”, – Georgy Ostapkovich, the author of the report and the director of HSE Centre of Market research, explained his predictions in the interview to RBC Daily.

Retailers are now seeking for a possibility to substitute imported products to domestic ones to neutralize the price increase.
By HSE estimates, Russia is strongly depending on imports: in average 33% of goods sold through both networked and non-networked retailers are imported. Moreover, the share of imported goods is pretty stable during the last few years, as Georgy Ostapkovich added. That means the prices on goods which can’t be replaced by domestic equivalents will increase by the end of the second quarter of 2014.

Ruble has started to weaken since the middle of February 2014, but expected price increase has not been recorded by Rosstat yet. A main rule for suppliers is that a supplier must inform a retailer about release price increase in a period of 30 days.

In fact, the price raising is step by step overtaking retail networks. For example, in “Dixie” a price increase on foreign fruit and vegetables is about 10-25%, on dairy products – 7-15%, sugar – about 8%. Meat products suppliers are going to raise prices by 10% or even more.

In “O’kay” a general price increase of 15-20% is detected. Retail prices on fish have grown up by 20%, on chocolate and nuts – by about 15%. The price increase on dairy products is the same as in “Dixie” – about 15%.
Furthermore, release prices on non-food range of products are also rising by 10%. Especially prices on cloths (90% of imported items), household appliances (80% of imported items), sport goods, office supplies and toys (70 % of imported items) are growing up dramatically.

According to Rosstat, the inflation in March was 1%, since the beginning of 2014 – 2.3%.

www.newsru.com

Russian fruit & vegetable imports saw continued growth in 2013

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The Russian import market of fresh fruit and vegetables in 2013 was worth 8.2 billion dollars (6.2 billion Euro). Two years before it was 7.7 billion dollars. In 2011 and 2012 the value was 5.5 and 6.0 billion Euro respectively. Volume comparisons show last year figures at 8.4 million ton, compared to 8 in 2012 and 8.3 in 2011. Previous years showed imports increasing sharply.

Apples and bananas are the two major products which are imported to Russia. Apple import continued to grow in 2013 but banana import was more modest. Tomatoes, the third import product showed good growth as did fourth place, soft citrus, then a number of products follow which reached a peak in 2011 but in recent years have fallen, these are oranges, pears, grapes and carrots. Onion import in 2013 was also seen to have been previously higher.

Ecuador is the most important supplier of fresh fruit and vegetables. This is mostly due to the banana. Ecuadorian bananas have a free monopoly on the Russian banana market. Turkey is the other massive supplier of fresh fruit and vegetables to Russia but import is not longer growing. Poland is rising as third supplier. Almost three quarters of Polish deliveries consists of apples. China follows in fourth place but their import shows a falling trend and apples, soft citrus and tomatoes are their most important products. Spanish import, number 5, has stabilised after a short spurt in 2013. The main Spanish products going to Russia are peaches/nectarines and tomatoes. Morocco also supply soft citrus, and Israel are a large supplier of products such as carrots and peppers.

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Russian apple prices lower year-on-year

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The Russian apple market participants say about stagnation in the sector.

For the present, many apple growers have already finished their season. Still selling farmers do not revise prices in view of stably low demand for apples and often low quality of offered produce.

As a result, growers’ apple prices vary between RUB 15-30/kg (EUR 0.27-0.55/kg), depending on quality and production region. It should be reminded that in the mid-March 2013 domestic apples were offered at RUB 0.31/kg and higher.

As regards imported apples, the demand for them also remains extremely low, and prices are still stable.

www.fruit-inform.com

Possible ban from Russia big problem for EU exporters

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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

2013 tough year for Russian fresh produce imports

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Due to a number of factors, 2013 was a difficult year for many of Russia’s fruit and vegetable suppliers. Bad weather negatively impacted some crops while restrictions on fresh produce shipments to Russia from several regions of origin limited supplies. Many companies in Moscow also experienced problems with fresh produce storage when one of the biggest warehouse complexes in the city was closed. Negative changes in consumer behaviour and purchasing power also became evident at the end of the year.

According to data from the Federal Customs Service, imports of fruit, nuts and dried fruit to Russia in 2013 remained roughly equal to 2012 levels – amounting to 6.19 million MT or $6.26 billion. Compared to the previous year’s figures (6.16 million MT, $6.28 billion), the volume of imported fruit increased by 0.4 percent and the value decreased by 0.35 percent. Imports of vegetables over the same period grew more intensively. The gross import volume of vegetables reached 2.90 million MT, or $2.80 billion, exceeding the volume and value of 2012 by 6.3 percent and 12.4 percent, respectively.

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Instability in Ukraine affects fresh produce

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The political instability in the Ukraine is having an effect on the fresh produce imports and exports to the country.The cost of fresh produce has increased by 10% in February, citrus alone rising by 20%.

The Ukrainian border with Poland is closed due to the situation and no fruit or veg imports or exports are taking place. One Polish apple exporter said that if the situation continued it would greatly affect the market, Poland exports 200,000 tonnes of apples to Ukraine every year.

Similarly imports of Greek kiwis have ground to a halt this week. A Ukrainian importer said that it was becoming more and more difficult to purchase fresh produce from abroad. “The value of our currency has dropping steadily making everything very expensive, to add to this the banks are now taking 1½ to supply foreign currency which makes payment very slow.”

Most fruit and vegetables are still available in the Ukraine, but with the change in the administration getting customs clearance is proving to be a long progress too.

www.freshplaza.com

Russia reduces apple imports

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Russia’s imports of apples are still significantly lower compared with the previous season, according to Federal State Statistics Service of the Russian Federation.

In particular, Russian importers purchased just 109,000 tons of apples in January 2014, a decrease of 28% year-on-year. Russia’s cumulative imports over the first 7 months of the current season fell by 15% compared with the same period of the previous season and totaled 575,000 tons.

Such a sharp decrease in apple imports is connected with lower shipments from Poland, which has reduced exports to Russia by 30% since the beginning of the season 2013/14, and rather moderate demand for apples in the Russian Federation.

www.fruit-inform.com