Russian food market research

Chilean Kiwi gains ground in Russian market

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According to Chile’s agricultural attaché in Russia, Pablo Barahona, Chilean kiwifruit is gaining importance in the country, and is very well-regarded by the importers. However, Chile has a great task as an industry, which is to improve the perception of the product. “Russia became our main market destination in Europe after Britain. Currently we are, in the Russian market, one of the leading suppliers in different products and therefore it is a very interesting niche.”

Pablo Barahona said, they are studying the feasibility of finding ways of collaboration between Russian and Chilean producers. Last month they began to work in the town of Sochi on the shores of the Black Sea and have already had the first harvest, with fruits of average size of 80 grams, reaching production expectations.

Source: www.freshplaza.com

X5 Retail Group may start direct import of fruit and vegetables

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As per RBK daily, Russian largest retail operator is considering a possibility of direct fruit and vegetables import, excluding distributors from the supply chain. The appropriate decision may be made within the next few months. X5’s main rivals – Magnit and Dixi – have been importing fruit and vegetables independantly for more than a year. The share of fruit and vegetables in the total revenue of a retail chain may reach 12%.

X5 may start direct import of fruit and vegetables in a few months after the company has finished the calculations. Traditional suppliers are Turkey, Africa, South America and Europe.

Source: www.retail.ru

Russian retail market expected to exceed $800bn in 2013

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In 2010, the Russian retail market recovered after the economic slowdown observed during the previous year and increased by 12.9% to RUB 16.5tr ($543.5bn). However, PMR predicts that in the next few years the market is unlikely to re-establish the pace achieved before the crisis.

PMR expects that there will be double-figure growth in the industry from 2011 onwards. However, in the short term the market is unlikely to witness the rate achieved before the crisis. Despite the improving economic conditions and relatively positive forecasts for the next few years, the situation on the Russian retail market still falls short of expectations.

The X5 Retail Group, which operates the Pyaterochka, Perekryostok and Karusel grocery stores, remains the leading retailer in terms of revenues in Russia. In addition to the double-figure year-on-year increase in total sales, there was a 7% increase in the company’s like-for-like sales in 2010.The Tander Group, a grocery retailer, occupies second place among the largest retailers, and is followed by the Auchan Group.

In 2010 the top 20 retailers accounted for about 11% of the country’s total retail sales value. The three largest players (the X5 Retail Group, Tander and the Auchan Group) controlled almost 5% of the market.

Source: www.freshplaza.com

Imported fruits and vegetables still preferred by Russian retailers

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Notwithstanding solid overproduction of vegetables in Russia, retailers still prefer to purchase imported produce. This information is regularly reported to Fruit-Inform by Russian producers, who try to come to an agreement with supermarkets about supply of their produce.

The quality of local fruits and vegetables leaves much to be desired. Even taking into account its lower prices, domestic produce often cannot compete with graded, washed and packed imported fruits and vegetables.

Source: www.freshplaza.com

South African grapes struggle to reach Russian market

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Export Company Pomona Fruit SA has been offering grapes into the Russian market from the first week of November. However it is clear that the Russian market is extremely nervous with regards to the high levels offered by the South Africa and Namibian exporters in general, and penetrating this market segment is also a frustrating procedure.

The Russian market is still well supplied by Peruvian, Brazilian & Californian products, and for an importer to make the mental leap from the lower selling prices in a sluggish market to having to commit to the high levels from South Africa and Namibia is tedious and in most cases very risky.

After a tumultuous citrus season where many Russian importers and exporters were both hit hard by the adverse market conditions, all parties seem to have taken a back seat in confirming orders. At the moment the Russian market is not buying considerable volumes from South Africa, and most likely this trend is set to stay for some time.

Source: www.freshplaza.com

Organized retail market will emerge in Russia by 2015

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Formation of organized retail market in Russia might be finished by 2015, so the Head of the Russian Union of independent retail chains. At the moment the market is dominated by hypermarkets, whose share is increasing.

In 2012 the share of hypermarkets will reach 15%. The share of hard discounters will remain at the level of 2011 and 2010. The neighborhood supermarkets will lose 5% of their share and occupy 34% of the market. Convenience stores will retain their 5%, which they have been occupying since 2010.

Experts also expect that international retail operators will build up their presence in Russia and add 1% to 9% that they have in 2011. Russian federal chains might also raise their share to 28%. Regional independent chains will keep their 34%.

Source: www.retail.ru

Moscow Retail Overview

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Mosgorstat (Moscow City Statistics Service) has published the data regarding Q1, Q2 and Q3 of  2011 compared with the same period in 2010.

The retail trade volume in Q1-Q3 2011 amounted to RUB 2,356.8 bln, 5.8% more than in 2010. The food items sales volume, including beverages and tobacco, grew by 4.2%. Food-items, beverages and tobacco accounted for 51% of the retail turnover. Retailers’ turnover grew by 7.2% y-o-y.

Source: www.retail.ru

Russian government seen decreasing import duties under WTO deal

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The Russian government has agreed to decrease its average import duties on agricultural and industrial products as part of Russia’s membership in the World Trade Organization (WTO).

Specifically, average import duties on agricultural products are expected to be lowered to 10.8% from the current 13.2%, the WTO said.

Roughly 33% of newly set import duties are expected to come into effect when Russia joins the WTO, while about 25% are to be lowered in the next three years.

Source: www.prime-tass.com

Ukrainian apples not competitive in Russia

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Russian importers do not want to work with Ukrainian apples due to their high prices. Ukrainian apples are offered averagely at EUR 0.70-0.75/kg in Russia . At the same time, sufficient quantities of Serbian and Moldovan apples of comparable quality are offered at EUR 0.60-0.65/kg in the Russian market. Large wholesale lots of high-quality apples from Poland are sold at the same prices. In addition, every year, a high import duty on the EU apples currently in force in Russia is reduced 2 times on January 1 that traditionally increases the pressure on prices.

In Ukraine, current prices for apples are 15-20% higher year-on-year. Ukrainian farmers plan to start their sales of high-quality apples only since the mid-December. Those farms that are selling apples from storage offer their produce at prices not lower than EUR 0.59-0.68/kg and report of the stable demand in the internal market in the event of such prices. Apples not suitable for storage are offered at last year’s prices: EUR 0.27-0.45/kg.

Source: www.freshplaza.com

Russia gets fruity as largest importer of apples and pears

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USDA announced that Russia became the world’s number one importer of apples and pears in the 2010 marketing year, a trend that is likely to continue throughout 2011, as the country trends towards healthy eating. This year, the USDA estimates the fruit hungry nation could import as much as 1.11 million metric tons and 412,000 tons of apples and pears respectively. Despite the magnitude of the country, Russia still depends heavily on imports because it only produces one-third of the fruit it consumes. “Russians are eating more fruit and diversifying the types of fruit they consume due to increasing disposable incomes and a trend toward eating more healthy diets,” the U.S. Department of Agriculture said in its Moscow attaché.

Still, the amount of fruit Russians consume remains much lower than their counterparts in the U.S., Europe, Japan and China. According to the USDA, the typical Russian person consumes only 71 kg of fruit per capita/year while an American would eat 122.5kg per capita/year. But with Russians already consuming 10% more fruit last year, growth rates are certainly alarming. Fruit consumption patterns in Russia vary depending on the part of the country. In smaller cities or rural areas, people tend to eat local produce while city dwellers in Moscow or St. Petersburg eat higher quantities of imported fruit.

Source: www.freshplaza.com