Russian food market research

Demand drives Russian fruit imports up

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In June-July 2010, Russia became the largest importer of apples and pears in the world with a combined total import volume of 1,521,600 MT. Fruit consumption in Russia is going up, reaching 71 kg per person in 2010. This trend is likely to continue, supported by a trend toward healthy diets in Russia. Russia produces only 30% of the fruit it consumes and therefore relies heavily on imports.

In June-July  2011,  Russian imports of apples and pears are expected to go up slightly and reach 1,115,000 metric tons (MT) and 412,000 MT, respectively. The grape import forecast is around 403,000 MT, slightly lower the 2010 level. The long-term prospects for U.S. apple, pear and grape exports is good given that Russian production is not expected to increase significantly. In the short term, U.S. exports could face challenges based on price because of the weakening of the Ruble since September.

Source: www.freshplaza.com

Russia and EU agreed on WTO terms

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Russia and EU have solved all bilateral issues pertaining Russia’s entrance into WTO. There is only one obstacle left on the way to WTO – Georgia’s opposition. Georgia’s opposition is the final barrier, and Russia needs to solve this before a WTO summit on December 15.

Karel de Gucht, the EU trade commissioner, has called on Georgia to drop opposition. “There is now very little time left to reach a bilateral agreement between Georgia and Russia. I call on both parties to continue their efforts to find a solution in a spirit of compromise,” The Financial Times quoted de Gucht as saying last week.

In televised comments last week, Russian President Dmitry Medvedev said his country would “survive” if it didn’t get WTO membership.

Source: www.retail.ru, en.rian.ru

Russia to Raise Production of Grapes

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In 2011 the volume of grapes grown in Russia will rise to 350-360 thousand tones vs 324,000 tones in 2010.

These figures were reported by Leonid Popovich, the President of the Russian Union of winegrowers and winemaking, on the annual meeting in Abrau-Durso. Unfortunately the vineyards lost due to severe frost 5 years ago haven’t been restored yet. In 2010 there were 60.9 thousand hectares of vineyards in contrast to 61.3 thousand hectares in 2006.

Source: www.fruitnews.ru

Russian import of peaches and nectarines has doubled during the last 5 years

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According to the report of MCX USA/USDA, dedicated to the world stone fruit market, Russian import of peaches and nectarines has doubled during the last 5 years.

During the season 2011/12 the world production of stone fruit will reach 18.1 million tons, that is 10% more than in the last season. Leaders of the production are China, EU, USA. The same countries consume and convert the biggest volumes.

Because of the increasing supplies from the EU to Russia, world export of peaches and nectarines will grow 4% and reach 587 thousand tons.

Source: www.fruitnews.ru

Russian importers are not interested in purchasing Polish apples

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The demand on Polish apples from the part of Russian importers is rather low. The supplies are rare and the shipments are usually small.

At the moment almost all sorts of apples are purchased: Johnagold, Ligol, Gloster, Elisa, and also Champion, but in limited quantities. The apple prices vary between 0,11-0,14 euro per kg (caliber 65) and 0,16-0,18 euro per kg (caliber 75).

Source: www.freshmarket.ru

The growth of earnings in Russia is gradually yielding the inflation

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In the year 2011, despite the weakening of crisis consequences, real salaries in Russia grow slower than in the year 2010, according to the information provided by the company “Ernst & Young”. The recruiting agencies remark that the salary growth will continue, but this growth will regard only the most effective and indispensable employees.

According to the research of “Ernst & Young” (E&Y), this year the salaries have grown, but less than last year. From July 2010 till June 2011 the average nominal salary growth has made 11%. Last year the growth rates were less—9.6%. However this year the salaries could get ahead the inflation only 1.6% (Last year this index was 3.9%).

Source: www.kommersant.ru

The Italians predict growth of kiwi exports to Russia

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Thanks to good weather and absence of rains the production of kiwi fruit in Italy will grow 15-20% and will exceed 500 thousand tons. Growers expect high quality of fruit and growth of supplies to Russia. This forecast has been made by Diego de Lucca/company Alegra at the exhibition Macfurt 2011 that is being held this week in Italy.

The company Alegra is one of the most important fruit growers and exporters in Italy. Every year they produce about 45-50 thousand tons. Most of all they export stone fruit (nectarines to Russia), kiwi and apples. The kiwi cropping is planned for the end of October, and the supplies will start the second week of November.

Source: www.fruitnews.ru

The Russians are buying cheap potatoes. Fruit sales are slumping.

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With the appearance of cheap seasonal products at the market, Russian consumers renounce buying fruit and vegetables traditionally present at their tables.
Retailers talk about the dramatic decline of import. This tendency was noted by Elena Koroleva, head of purchasing department of the supermarkets “7Я” (“Semya”), within the framework of the business program of the exhibition Macfrut 2011/3d European fruit summit, that is taking place in Italy this week. This tendency is due to low prices; consumers remember the last year prices for potatoes that reached 50 rubles per kg.
Source: www.fruitnews.ru

The number of poor people in Russia has returned to the crisis maximum

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The income of about 15% of the Russians is lower than the living wage, defined by the Federal State Statistic Service (Rosstat). Herewith during the first half of the year 2011 the number of poor people in Russia has increased 2 million people and has reached the level close to the peak of the crisis.

The situation for the country, where the president will be elected in almost a year, seems to be paradoxical. According to the statistics published by Rosstat on Tuesday, the number of poor people in Russia—those whose income is lower than the living wage—has increased 2 million during the first half of the year 2011, and reached 21.1 million people.

The Rosstat experts explain that the number of poor people in Russia is largely due to the high growth rates of the consumer basket cost. In the second quarter of the year 2010 it was 5625 rubles, this year it is 6505 rubles per person a month.

In comparison with the first quarter of the year 2011 the minimum subsistence level has grown 0.5 %. Herewith the cost of food in the consumer basket has decreased 0.2 %, the cost of non-food goods and services has grown 1.7 % and 0.7 %,–informs Rosstat.

At the same time, according to the Russian Forbes, the number of multi-millionaires in Russia has increased by half. In Russia there are 200 businessmen—multi-millionaires. During the previous years there were about 100 people. The total wealth of 100 most rich people makes $432 milliard.

At the top of the list of the richest Russians there are owners of big metallurgical and oil companies. However, there are also 18 members of the Federal Assembly of the Russian Federation—10 deputies of the Russian Duma and 8 senators.

Source: www.kommersant.ru

Retail will grow 5.5% a year

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According to the forecast of the social-economic development of the Russian Federation for the year 2012 and the planning period 2013-2014, prepared by the Ministry of Economic Development and Trade, the growth rate of the retail turnover in the years 2012-2014 won’t exceed 5.5% a year.

The growth dynamics of non-foods will advance the growth dynamics of food products. In comparison with the year 2010 the food products turnover will grow 8.4%, whereas the nonfoods turnover will grow 38.2% by the year 2014.

In the food products structure the sales of more expensive products will grow, such as meat and poultry, fish, cheeses, fruit, vegetables and berries. At the same time sales of bread and bakery products will decline.

Source: www.fruitnews.ru