Russian food market research

Fruit and vegetable cultivation decreases in Russia between 2004 and 2010

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During the last few years Russia has become more and more an import market for fruit and vegetables. The own production clearly decreased, whilst import of fruit and vegetables increased sharply. Important trading partners are both countries in the region, such as Poland, Turkey, China and Uzbekistan as well as countries which are somewhat further away, such as the Netherlands, Israel, Ecuador and Argentina.
The total area of vegetables in Russia during the period 2004-2010 decreased form 945,000 HA to 759,000 HA, a decrease of 20%. The production of vegetables decreased by 11% from 14,809 to 13,233 million kgs in 2010. Especially the area and the production of cabbage decreased. The same development in the fruit cultivation can be seen. The area decreased by 43% and the production by 37%. With apples and pears both area and production were halved.
Whilst the production decreased imports sharply increased. In the period 2003-2010 imports of fresh vegetables into Russia increased by 91% from 1,220 to 2,327 million kgs. Especially more tomatoes and cucumber were imported. The import of fruit increased by 86% from 2,997 to 5,562 million kgs. Of practically all important fruit varieties more is imported. The increase was biggest with apples, mandarins, grapes and peaches.

Russia threatens ban of dried fruit imports

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Russia is threatening to ban imports of dried fruit from Tajikistan and Azerbaijan, according to a press release issued by Rosselnadzor, Russia’s agricultural oversight agency.

The possibility of a ban emerges after repeated instances of pests being discovered in shipments of dried fruits from both countries, according to the agency.

Rosselnadzor has warned the countries of measures they need to take to avoid the ban, stating that it reserves “the right to take additional protective measures.”

Source: www.freshplaza.com

Russia imports more apples from Moldavia and Serbia

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Russia imported 1.15 million tonnes of apples in 2011. That’s slightly more (+0.4%) than in 2010. Poland remains the most important supplier with around 283,000 tonnes (-18%). This is despite Poland supplying less apples in 2011 than in the two especially successful years before. Moldavia is becoming a more important supplier. In 2011 the country supplied 174,000 tonnes of apples to Russia (+14%). Five years ago this number was still around 1000 tonnes. Imports from China (150,600 tonnes, -3%) have been declining since the peak in 2008 (241.550 tonnes).

The number of deliveries from Serbia has increased significantly (90,700 tonnes, +45%). Argentina (60,150 tonnes, +102%) did well again, after the country only supplied small amounts of apples to Russia in the years 2009 and 2010. The countries from Central and South Europe supplied 222,100 tonnes (+3%) together. The small positive trend in the total import was due to the higher amount of deliveries since the beginning of the new harvest (+8.9%). In the first half of 2011 the number of imports was in a downward trend.

Source: www.freshplaza.com

Up to 70% of harvest lost as billions of rubles damage caused by cold

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Russian agricultural officials are expecting adverse effects on this year’s harvest after weather colder than usual.

For example, in Saratov Kray, which has experienced temperatures as low as -35°C, only half the grapevines are protected by earthen barriers.

In Krasnodar Kray, located on the Black and Azov seas, temperatures have dropped in some places to -31°C and have been accompanied by strong winds. 10-30% harvest reduction is expected as a result.

In Astrakhan, north of the Caspian Sea, officials say as much as 70% of fruit from orchards may be lost this year.

Russian agricultural officials concede there will be substantial damage to this year’s fruit crop. They said damage to fruits such as strawberries that grow low to the ground will be minimal and that orchards in northern areas of Russia would not be affected, since they grow in areas where temperatures of -30°C or -35°C are common.

Source: www.freshplaza.com

Frosts hit fruit and vegetable trade in Russia and Ukraine

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Significant fall of temperature caused delays in deliveries of fruits and vegetables to Russian and Ukrainian retail chains. Trade in outdoor markets is almost fully paralyzed.

Supermarkets’ fruit and vegetable managers reported to Fruit-Inform of serious stoppages in deliveries of fruits and vegetables as well as of higher rejects percentage in lots due to produce having been damaged by frosts during transportation.

For the present, disruption of trade has not led to any price imbalance in the market. Nevertheless, some representatives of supermarket chains think that produce prices may grow by 5-10% by early February. However, managers are sure that even if an increase in prices is registered, produce will be growing in price only for a short period of time. When a thaw sets in, the supply of vegetables will increase, and prices will sink again.

Source: www.freshplaza.com

Russia expected to import more citrus from FSU countries in 2012

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According to www.rg.ru, Russia imported about 1.4 million tonnes of citrus fruits last year that is almost 10% higher year-on-year. The share of FSU countries (former Soviet republics) in Russia’s total citrus imports decreased to 10% in 2011, while a year earlier their share amounted to 14%. The experts say that last season’s climatic peculiarities caused a reduction of Russia’s citrus imports from Abkhazia, Azerbaijan and Central Asia; however, the situation will cardinally change in 2012.

Georgian produce will be exported by 4 companies. Russia’s total citrus imports from Georgia may reach 55,000 tonnes per annum (mandarins will account for up to 65% of them, lemons – for 20%). Georgian authorities plan to hold talks on export recommencement with Gennadiy Onishchenko, Chief Sanitary Officer of Russia.

In the meantime, Abkhazia almost halved its citrus exports to the Russian Federation to about 8,000 tonnes (80% – mandarins) in 2011. A sharp decrease in exports was caused by low citrus production in the country. In 2012, Abkhazia plans to export no less than 10,000 tonnes of citrus fruits to Russia.

Azerbaijan expects to increase its citrus exports to the Russian Federation by more than 30% to 14-16 thousand tonnes this year.

Source: www.lol.org.ua

No problems with vegetable storage faced in Ukraine and Russia for the present

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Too low prices remain the main problem for Russian and Ukrainian vegetable producers. The quality is still satisfactory though. This is indicated by Fruit-Inform’s mini-survey of vegetable growers in Ukraine and Russia. At the same time, farmers think that a slight temperature drop will only profit them. If the temperature remains relatively high in the second half of winter, farmers will most likely not avoid quality decrease of vegetables in unequipped storage facilities.

To attract purchasers some farmers are ready to lower prices, which haven’t changed in the last 2 weeks. This situation fully corroborates Fruit-Inform’s forecasts made at the Eighth International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter”.

Source: www.freshplaza.com

More than 50% of Russian retail managers don’t expect any changes in the economical situation

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According to Rosstat (Russian State Statistics Service), more than 50% of Russian retail managers don’t expect any changes in the economical situation in retail in Q1 2012.

However, around 30% of the polled trade companies are expecting the retail turnover to increase in Q1 2012, 25% are going to raise the sales volume, supply and the range of sold goods. At the same time 25% of undertakers expect revenues growth, and almost 50% – further price growth, 6% are planning to raise the trade mark-up.

In Q4 2011 the average level of trade mark-up was 27%, like in 2010.

Source: www.retail.ru

Consumers demonstrate moderate activity before the New Year

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For the first time in the last few years consumers demonstrate moderate buying activity and growth rate reduction can be seen. This trend is more obvious in St. Petersburg than anywhere else.

This autumn Russia has seen consumption growth reduction. Russians have become more reasonable when planning personal budget and citizens of St. Petersburg have been the most moderate in their expenditures.

The first  evidence of the alarming trend appeared at the end of October and were most definite in November. In November expenditures grew by only 2% in comparison to October, whereas in the last two years the growth during this period was 5-6%.

Consumers started to buy only the required amount of goods and retail chains will have to face the new stage of competition: clients will be acquired by means of raising service quality.

Source: www.retail.ru