Russian food market research

Warehouse Pokrovskaya is relocated outside Moscow

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Fruit and vegetable warehouse Pokrovskaya is located in Biryulevo neighborhood in Moscow, that is one of the biggest centers of wholesale trade of fruits and vegetables in Russia. Pokrovskaya warehouse belongs to JSC “Novie Cheremushki”, which, according to media reports, is controlled by stepbrothers Aliaskhab Hajiyev and Igor Isaev from Dagestan. The area of warehouse is more than 120,000 square meters. According to some experts, daily turnover was 20-40 million dollars; according to other estimates, the actual turnover was 3-4 million dollars per day. The exact figure is not known, as more than half of the turnover of Pokrovskaya warehouse belongs to the shadow market.

Biryulevo neihgborhood is just a kilometer from the warehouse. Residents keep complaining about the criminal situation in the area, the high level of illegal migration, bad traffic situation and an enormous amount of waste and garbage.

On October 10, a young man was stabbed by an unknown, presumably from Central Asia or the Caucasus area.
On October 13, more than 1000 people invaded Pokrovskaya warehouse, demanding swift investigation of the murder, the closure of the warehouse and stiffening immigration policy.
Pokrovskaya warehouse was partially closed for cleaning day on October 14. And in the evening it was closed forever. On October 15, it was announced that it would be transferred outside Moscow.
On October 15, the murderer was found and arrested, it was a Azerbaijan native Orhan Zeynalov born in 1982.

Sources: www.ria.ru, www.rosbalt.ru, www.ru.wikipedia.org

Russia is the largest non-EU client for Spanish tomatoes

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Russia has become the largest non-EU client for Spanish tomatoes after doubling its purchases during the first semester of 2013, reaching 24.06 million kilos, according to data from the Department of Customs and Special Taxes of the Ministry of Economy, processed by FEPEX.
The second largest non-EU destination during this period was Belarus, which imported a total of 5.62 million kilos of fresh Spanish tomatoes.

As a whole, Spanish tomato exports during the first semester of 2013 have increased by 9.5% compared to the same period last year, totalling 640,960 tonnes, due to the EU’s growth, as well as that of the aforementioned countries.
Of the 640,960 tonnes of Spanish tomatoes exported, a total of 602,425 tonnes were shipped to the European Union (94%), with an increase of 7% compared to the same period last year. Within the EU, Germany is the main recipient with 132,888 tonnes; 11% more than in 2012. It is followed by France, with 95,471 tonnes (+5%) and the UK with 87,781 tonnes (+3%).
This growth in tomato exports, Spain’s most exported vegetable, is mainly due to the increase in demand from the EU and the continent, as according to FEPEX, the volumes exported to other markets of potential interest are very small, mainly as a result of barriers to imports in the shape phytosanitary protocols. The total volume of exports to markets outside the EU was 244 tonnes, just 0.04% of the total.

Source: www.freshplaza.com

Russian Ministry of Agriculture changed the law on organic food production

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In Russia, there is still no legal concept of an “organic product” and its standards. For several years, the bill consideration was delayed, but in the fall 2012, the Ministry of Agriculture finished the bill after appeals of farmers that produce organic food. In the version of the project, published in November, it was said that agricultural products would be called organic or bio, corresponding to the Russian or foreign certification systems; and that certification would be valid for 5 years.

In the new version of the project, it is said that separate registration is required for each type of organic product products. The registration term is 3 years. As for the labeling of products that will meet the requirements of the law, only the term “organic” must be used.

Only those producers who have passed state registration, may get special state support.

There will be a system of fines for those who will violate the law. Legal entities will pay fines of 20,000-30,000 rubles (470-700 euros) for violation of organic food production, for violation of state registration – 5,000-10,000 rubles (120-230 euros), for illegal use of the brand “organic” – 30,000-40,000 rubles (700-940 euros), with confiscation of the all false branded items.

Source: www.freshmarket.ru

Low apple prices in Poland despite a decrease in EU production

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Despite lower apple production in the EU and, correspondingly, lower stocks, apple prices in Poland in the end of the season 2012/13 were averagely 32-33% lower year-on-year. Average prices over the season were 25% lower compared with the previous result.

Polish apple growers had to reduce their prices due to record high apple production in the country, which, correspondingly, led to larger stocks of apples during the season. Polish apple stocks amounted to 56,000 tonnes as at June 1, 2013, an increase of 4% from the same period of the previous year. Furthermore, Poland was the only country in the EU with larger stocks year-on-year: Italian stocks were 30% lower, French stocks decreased by 55%, and Italian apple stocks fell by 65%.

However, despite that, the Russian Federation still remained the main export market for Polish apples, while the demand for them in the EU was low. Furthermore, Russian apple production was rather high too, which intensified competition in Russia and also exerted pressure on prices.

Source: www.fruit-inform.com

Inflation in Russia under control

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The Central Bank of Russia expects inflation to slow down in the second half of 2013 and will be 5-6 %. If this happens, the rise of consumer prices in the current year can be a record low for the last twenty years.

Current inflation is expected to slow down not only in 2013, but also in the beginning of next year. The risks, however, still remain.

According to Federal State Statistics Service, inflation in Russia since the beginning of the year has reached 4%. The growth dynamics of prices for goods and services corresponds to the last year dymamics. In 2012, in the second week of July the inflation was 4%.

From 2 to 8 July, prices increased by 0.2%. From the beginning of July there was 0.5% growth. Such a large figure can be easily explained by the indexation of tariffs that happened July 1. According to Federal State Statistics Service, electricity prices rose by 1.4%, for certain types of public services – by 0.7-1.5%; and rents in state houses increased by 0.5%.

If forecasts becomes true, it will be a new record, the last record was in 2011, when the increase of consumer prices in the country was the lowest in the history of the new Russia – 6.1%. In 2012, inflation amounted to 6.6%.

Source: www.retailer.ru

Moldova doubles apple export to Russia over 5 seasons

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According to Federal State Statistics Service of the Russian Federation, Russia doubled imports of Moldovan apples over the past 5 seasons. In the first 11 months of the season 2012/13, Moldova exported 166,000 tonnes of apples to Russia, while in the same period of the season 2008/09 Moldovan exports had amounted just to 82,000 tonnes.
Five seasons ago, Moldova was just fifth largest exporter of apples to the Russian Federation. Currently, this country ranks second and is behind only China.
In the current season Moldova accounted for the share of 13% in Russia’s total apple imports despite a decrease of 11% in exports in the first 11 months of the season.
Source: www.freshplaza.com

Further decrease in Russia’s imports of Chinese apples

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According to the official statistics, the Russian Federation keeps on rapidly reducing imports of apples from China.
In the first 11 months of the current season, Russia imported record low 112,000 tonnes of Chinese apples, a decrease of 7% from the import volumes over the same period of the previous season (121,000 tonnes).
Over the past five seasons, Russia’s imports of apples from China became 42% lower. However, China still remains the third largest exporter of apples to the Russian Federation.

Source: www.freshplaza.com

Peak of South African apple exports to Russia

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According to Fruit-Inform, the peak of South African apple exports to Russia was registered in May.
The South African apple export season traditionally starts in March with largest exports to Russia being registered in May-July.
South Africa has been steadily increasing apple exports to the Russian Federation in the current season. In May 2013, Russia purchased 2,200 tonnes of South African apples, 60% more compared with the same month of the previous year. Russia’s cumulative imports of apples from South Africa in the period from March to May amounted to 2,700 tonnes, an increase of 50% year-on-year.

Source: www.freshplaza.com

Moscow franchisee retail network “Monetka” is for sale

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The founders of retail network “Monetka” Sergey Lomakin and Artyom Khachatryan put it up for sale. There are nearly 100 stores in Moscow, the network is estimated at up to $200 million (according to some sources, up to $200 million). “Monetka” (LLC “Investproekt”) is a franchisee of the Ural network, which now numbers more than 400 stores.

The revenue of LLC “Investproekt” amounted to 7.6 billion rubles. a debt is 4 billion rubles in 2012. The estimated revenue in 2013 is to reach 8 billion rubles.

According to the market analytics, buyers may be the Russian major retail network Magnit that is going to conquer Moscow retail market and the biggest meat holding Miratorg that is planning to develop its retail network.

Source: www.retailer.ru

Russia imported 15% less fresh fruit and vegetables in 2012

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Russia is still an interesting market despite the 15% drop in imports during 2012. The total imported volume reached almost 8.9 million tonnes, according to data published by Freshtel, provided by the Russian Federal State Statistics Service.

The most important categories in 2012 were citrus, with 1.58 million tonnes (4.9% less than in 2011), apples, with 1.27 million tonnes, which represents 7.6% of the total, and bananas, with 1.26 million tonnes.

Source: www.freshplaza.com