Russian food market research

Russian Fish Processing To Adopt International Quality Standards

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Expected Russia’s joining the WTO cannot but affect its fishing industry. However, this will not force any significant changes into operation of coastal fishing companies, since they deliver their whole catch to domestic ports for its further processing or sale in domestic market. But for those Russian fishing companies that export their products to European countries the changes associated with entry into the WTO are crucial, and they shall prepare themselves to many new things.

It’s claimed that joining the WTO will enable Russian fishing companies to trade their products on equal terms with other EU countries. But the problem is that there are concerns related to lower competitiveness of domestic fish products since not all Russian products meet high European standards. Closely working with Russian fish suppliers that have relevant European certificates, I know that at many other enterprises certain EU regulations are not met. Many companies are not ready to introduce and adopt international standards, so it will take some time till they will be allowed to enter the European market with their products.

It is also worth noting that in order to gain from joining the WTO, Russian enterprises should increase volumes of deeply processed products, which will provide the biggest added value.

Source: www.superocean.net

Fruit and berry production increased 28% in 2011

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According to the ready-made market research “Russian Fruit Market 2008-2011 and Forecast for 2012-2015” production volume of fruits in 2011 was 59.5 billion Rubles ($1.8 billion US) pricewise.

It is worth mentioning that from 2005 fruit and berry production volume in price terms was very variable, meaning that there were both falls and rises. But the overall tendency of increase can still be noticed. In 2006 the production volume was 30.6 billion Rubles. In 2007 the production increased a great deal up to 42.7 billion Rubles(40%), 2008 was the year of stagnation within the limits of plus 3%. In 2009 the production volume pricewise grew remarkably again to 35%, but the drought of 2010 reduced the figure. In 2010 the production volume was only 46.4 billion Rubles, which is 22% lower than the previous year.

The production in volume terms is even more unstable, but here no tendency of increase can be outlined at all. For example, as compared with 2004 the production volume increased 2.8%, although inside this period the difference between the most fruitful year and the least fruitful year was 29%.

Source: www.bsmarket.ru

Russian apple production will increase by 8%

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More than 250 representatives of the international apple and pear sector met on the occasion of the 36th Prognosfruit Conference on 3rd August 2012 in Toulouse (France). On this occasion, WAPA (World Apple and Pear Association) released the 2012 European apple and pear crop estimates. The 2012 apple and pear production in the EU will be significantly lower than average given unfavourable climatic conditions in winter and spring across Europe. Apples will decrease by 9% compared to the previous year while pears are estimated to have a lower crop by 22% compared to 2011.

More specifically for apples, the 2012 European crop forecast is announced at 9.739.000T. This production is 7% lower than the average for the last three years. In regard to varieties, Golden Delicious production will be down by 15% to 2.212.000T. Gala will decrease by 6% to 1.070.000T. Red Delicious will decrease by 18% to 555.000T, while Idared will go up 34% given a larger crop in Hungary and Poland. With the exception of Poland which will witness a larger crop (2.8 Million T) due to new plantings, most of the Member States will record lower crops; this will also be reflected in the varieties breakdown.

Regarding pears, European growers predict a significantly lower crop down 22% compared to 2011. Indeed, it is reported that the new season crop will reach 2.060.000T, compared to 2011 production which reached the peak of 2.629.000T. The 2012 forecasted crop is also 17% lower than the average crop of the last three years. In 2012, the Conference variety will see its production decrease by 21% to 743.000T, William BC will decrease by 19% to 255.000T, and Abate F will also decrease by 26% to 284.000T. Elsewhere in the Northern Hemisphere crops have also decreased compared to last year, namely in the USA (-7%) and Ukraine (-8%).

Overall, climatic conditions have not been favourable in many parts across Europe during blossom and the  beginning of the growing period of the fruit. Under these particular weather circumstances having their impact on the production, the relevance of transparency of data is important and the effort of Prognosfruit/WAPA in this respect is underlined. The new season is to start according to the normal harvesting schedule on a basis of clear stocks from the last season and no overhang with Southern Hemisphere fruit while there are no pending stocks for apple juice concentrate which should strengthen the market for the benefit of the sector and provide better return to growers after several difficult seasons.

Source: www.fruitnews.ru

What can we expect for the apples market after Russia’s accession to the WTO?

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According to the WTO agreements, duties for almost all kinds of fruit and vegetable production in Russia will decrease greatly after Russia’s accession to the WTO, while, according to some

unconfirmed information, the duties for apples may become almost two times less.

However, the European exporters comment the advantages of  Russia’s membership in the WTO with caution. Suppliers say that the price will depend on the reference prices, which will be established by the customs. Besides, there are many predictions about the devaluation of the ruble.

Source: www.fruitnews.ru

Russia, Kazakhstan, Belarus Keep Customs Union

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Russia is to maintain the Customs Union with Kazakhstan and Belarus according to Emily Balsamo from the Moscow Office of Bord Bia – Irish Food Board. The Customs Union of Kazakhstan, Belarus and Russia (CU) was formed with the goal of eliminating international tariffs between the three countries, creating a common economic space.

Complete fruition of the policies of the Customs Union of Kazakhstan, Belarus and Russia has occurred only within the past few months, finally creating a free trade area with a common external tariff.  Kyrgyzstan and Tajikistan are currently in talks with the supranational committee that heads the Customs Union with the intention of joining.  Ukraine has not joined to date due to apprehension of it impacting on their planned WTO accession.

This raises the question of reconciliation of this pre-existing common economic space with Russia’s WTO membership in the near future.
Belarus and Kazakhstan are currently observer governments to the WTO, not members, and are thus not subject to WTO imposed trade liberalization. Also, how will Russia implement WTO policies while continuing to be a part of a common economic space with two countries that are not members of the WTO?

Russia will fully accede to the WTO later this month after the ratification of all relevant documents by the Russian government, parliament and president. Although tariff rates under WTO membership have not yet been released, it is widely understood that membership will greatly facilitate trade and importation to Russia.

The Customs Union of Kazakhstan, Belarus and Russia will continue through Russia’s WTO accession, likely leading to facilitation of importation to Kazakhstan and Belarus as well. In fact, Russia’s accession has incited strong interest in Belarus’ and Kazakhstan’s future accession, with Russia formally encouraging the EU to support accession of the two countries.

Source: www.thefishsite.com

Argentina: Russian market receiving half of pear production

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Statistics provided by Patagonia Norte indicate that, during the first half of the year, overseas pear exports have reached 201,700 tonnes. This figure accounts for 71% of the total fruit exports leaving San Antonio and Bahía Blanca (Argentina) and indicates a 26% fall in sales when compared to the first half of 2011.

Russia was the main client, as approximately 89,000 tonnes were shipped there, meaning that 44% of the total sales were destined for Saint Petersburg. The second largest client was the Netherlands, where 30,200 tonnes of pears were shipped. And the third place was for the US, with 28,200 tonnes.

In regards to apples, overseas exports reached 76,700 tonnes, showing a 36% fall compared to consolidated data from the first semester of 2011.

Russia was also the main destination for this product with 28,700 tonnes shipped, representing 37% of all the exports leaving San Antonio and Bahía Blanca. The second destination in importance was the Netherlands, with 11,600 tonnes purchased. And very close behind Algeria, with 11,500 tonnes of Argentine apples imported.

Source: www.freshplaza.com

Price growth of fruits and vegetables in Russia: the prices have never grown so fast

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According to the Federal State Statistics Service, only during 1st and 2nd of July, the inflation rate grew up by 0.5%: the residential rate fee went up by 6.2%, electricity fee – by 4.7%, water and heating fees – by 2.4% and 3.2% respectively. Surface transportation fee went up by 4%. Vodka prices grew by 1.7%, chicken and sugar prices – by 0.7% and 0.5% respectively, according to the report of NEWSru.com with reference to newspaper Vedomosti.

But in June the inflation rate began to rise faster. As the Federal State Statistics Service reported, in June 2012 the price increase rate was 0.9% compared to 0.2% in June 2011. The reason of high rate of the inflation in June was the price growth of fruits and vegetables, as Oleg Zasov, director of the Department of Economic Development, explains. In general, food prices grew by 1.6% in June, but if fruit and vegetables were not taken into consideration, the food inflation was only 0.3%, according to the Federal State Statistics Service.

Prices for vegetables and fruits grew by 13.4% compared to May prices and they went up by 28.8% since the beginning of the year: in June the onion price grew by 39.6%, cabbage price – by 28.6%, potato price – by 24.4%, carrot price – by 21.9%, beet price – by 18.3%.  Lemon price grew by 20.0%, and grapes, pear and orange prices – by  6.3-9.8%.

Andrej Belousov, minister of the Department of Economic Development, called the price rise of fruit and vegetables abnormal. The prices for fruit and vegetables have never grown so fast, and one of the reasons is that the prices for the last year harvest were quite low, meanwhile the stock came to an end in May, and the prices began to rise.

Another reason of the price growth is the drought in Russia’s south regions in May: the harvest of vegetables, especially cabbage, was less than it had been expected before, as Dmitry Rylko, CEO of the Institute of Agricultural Market Studies, told, but he also said that the situation is going to return to its usual state in the nearest future. Dmitry Rylko and Andrej Belousov believe that in July price growth of vegetables and fruit is going to slow down, and then, in August and September, prices may decline.

But while there is no domestic harvest, the import rate is quite high, and it went up because of the depreciation of the ruble, as Evgenij Gavrilenkov, Troika Dialog chief economist, said. According to the Federal State Statistics Service, the general inflation rate grew by 3.8% since the beginning of the year.

Source: www.fruitnews.ru

The accession to the WTO and the Russian fishery industry

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As some experts say, the accession to the WTO will not change the total amount of fish and seafood on the Russian market. And fish consumption will continue to grow, as Andrej Krajnij, head of the Federal Fishery Agency, said during the parliamentary hearings in the State Duma on June 20. Four years ago, according to the Russian Statistics Service, the average fish consumption per capita was 12.7 kilos of fish, but the last year it was 22 kilos, and by 2020 it is expected to be 23.5 kilos.

Meanwhile, people involved in the fishery industry expect that the accession to the WTO may cause some serious problems. The deterioration of fishery fleet and the fact that there are almost no facilities for new fishery boats construction and repair of old ones and other factors put the Russian fishery industry in unequal conditions with fishermen from other countries, which are WTO members. Moreover, one of the main problems is the fact that the Russian fishing industry is limited by the imperfect legal system: unreasonable restrictions, outdated legal framework prevent the fishery sector from developing. And there are some assumptions that Russia’s accession to the WTO may even damage the whole fishery industry.

Nevertheless, it is only a forecast, now there are some government programs; their goals are to create good conditions for the development of the fishing industry as an important segment of the national economy of Russia after the WTO accession.

Source: www.frozen-products.ru

Russia may ban the import of fruits and vegetables from Turkey

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Russia may prohibit the supply of fruits and vegetables from Turkey because of the violations of the Russian customs claims. Rosselkhoznadzor (Federal Service for Veterinary and Phytosanitary Surveillance) admit such a possibility because of increasing quantity of supplies of fruits and vegetables that contain hazardous substances.

Meanwhile, Turkey is a major supplier of fruits and vegetables to Russia.

Source: www.fruitnews.ru

Russia’s fishing industry experiences steady growth

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According to Russian statistics, the fish processing sector of the Russian economy increased by 81.3 thousand tons of fish.

In 2011, due to further construction in the fish processing industry, the storage of fish and fish products was around 2.7 thousand tonnes. There is growing investment activity in the fishing industry. During the period from 2000 to 2011 capital investment in the fishing industry increased 3.5-fold (from 2.2 billion to 7.8 billion rubles).

During this period the average annual growth rate of investment in fixed assets amounted to 14.2 per cent (510 million).

Source: www.thefishsite.com