Russian fresh produce market

Potato and Vegetable Prices Set New Records in Russia

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Most vegetables have risen in price by 1,5 to 2 times compared to last year and have set new records for September, when, as a rule, the supply of vegetables exceeds demand on the market.

When in June prices for carrots and beets in Russia reached unprecedented levels, officials hoped for a new harvest to significantly reduce the prices. However, most of the potatoes and vegetables of the so-called “borsch set” to be stored have already been harvested, but prices are record high and continue to rise.

“Last week, carrot prices jumped by 22% at once, and the price for potatoes increased by 8%. The summer drought followed by rains when the produce had to be harvested, affected both volumes and quality of the grown produce. Market participants fear that there will not be enough high-quality potatoes and vegetables that can be stored until spring. The second factor influencing the rise in prices is the continued rains that delay the harvesting of potatoes, carrots, and beets. Accordingly, the supply is not as high as it could be at this time” explains Andriy Yarmak, economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO).

By the way, Belarus is experiencing similar problems, where prices for vegetables and potatoes are also breaking records, and the country has already begun to import potatoes from Ukraine and other countries.

However, market experts emphasize that bad weather is not the main factor affecting the decline in production and the rise in prices for potato and vegetables. The vegetable growing crisis in Russia has been going on since 2019 and it was caused by a long period of low prices and low profitability of production.

Potatoes are currently sold in Russia on average twice as expensive as last year.

Carrots have risen in prices slightly less than potatoes, but their prices have increased sharply last week. According to market participants, they will continue to grow. At the moment, wholesale carrots are 69% more expensive than at the same time last year.

The situation with onion prices is better – so far they are sold only 17% more expensive than last year. Moreover, they even have a slight tendency to decline. Also, onions in Russia are now cheaper than in other countries of the region. Therefore, the downward trend in onion prices may soon be replaced by growth.

Note that in the first seven months of 2021, Russia increased its imports of potatoes by 70%, carrots by 19%, but reduced onion imports by a third. The largest volumes of potatoes and onions were supplied to Russia by Egypt. Large volumes of onions were also imported from Turkey, Uzbekistan, Kazakhstan, and China. The main part of carrots Russia imported from Israel, China, Egypt, and Belarus.

east-fruit.com

Shipping Route Launched to Export Egyptian Crops to Russia

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Egyptian shipping company Kadmar Shipping Co. has announced the launch of the Russian Leader Line for transporting Egyptian agricultural crops between Alexandria and Russia. The company said that the line would start shipping citrus, potatoes, grapes, pomegranates and other produce this month.

The shipments will take place via weekly direct sailings between the Alexandria Container and Cargo Handling Co. terminal at Dekheila port and the Novorossiysk container terminal on the Black Sea. The inauguration of the Russian Leader Line comes in the wake of cooperation between Egypt and Russia and a presidential directive to increase Egyptian exports.

Potatoes and Vegetables in Russia are Significantly More Expensive

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For the first 5 weeks of 2021 in Russia, the average price for potatoes increased by 40% in annual terms: 30.9 rubles/kg ($0.42/kg) versus 22.2 rubles/kg ($0.30/kg) one year earlier. This was reported by Agro.ru with reference to RBC and weekly data by Rosstat.

Carrots have also risen in price during this period by 34% to 37 rubles ($0.50), tomatoes by 20% up to 173.6 rubles ($2.35), cucumbers by 16% up to 175.4 rubles ($2.37), and onions by 10% up to 27.8 rubles ($0.38).

Tatyana Gubina, the head of staff at the Potato Union of Russia, noted that due to the record harvest in 2019, the wholesale price in January 2020 was 10 rubles per kilogram and potatoes were sold at cost. In the current year, the price has increased due to the excess demand versus supply.

The Ministry of Agriculture said that the potato harvest fell by 11.3% in 2020 compared to 2019 and the share of small potatoes also increased. Due to the competition from retailers for large potatoes, the price has increased. The Ministry also said that prices for the products should begin to decline in June when the new harvest arrives on the market.

www.east-fruit.com

Rosselkhoznadzor lifts ban on tomato imports from more companies in Azerbaijan

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Starting today, February 5, 2021, Rosselkhoznadzor will lift restrictions on the supply of tomatoes to Russia from 12 more companies from the Republic of Azerbaijan.

“In order to remove the current restrictions on the supply of plant products, Rosselkhoznadzor together with the Food Safety Agency of the Republic of Azerbaijan conducted video inspections of Azerbaijani enterprises for the absence of contamination by the tomato moth (Tuta absoluta Povolny),” reported the Rosselkhoznadzor press service.

In connection with the negative results of the quarantine phytosanitary examination of the samples that were selected as a result of video inspections conducted from January 14 to 29, Rosselkhoznadzor, under the guarantees of the Food Safety Agency of the Republic of Azerbaijan, allowed the following companies to export tomatoes:

  • AMORIS LLC (Lenkoran region, village Kharkhatan);
  • ALZA HOLDİNQ-1 LLC (Baku city, Nasimi region);
  • BVB Peasant Farm LLC (Sabirabad region, Kurkendi village);
  • H AND M AGRO LLC (Baku city, Yasamal region);
  • Aqroinnova LLC (Baku city, Nasimi district);
  • ARGO LLC (Baku city, Yasamal district);
  • AGRO-LAND-AZ LLC (Khazar district, Mardakan settlement);
  • A-ALYANS LLC (Baku city, Narimanov district);
  • Guliyev Bashir Shain (Baku city, Nasimi district);
  • PARADISE AGRO LLC (Absheron district, Hovsan settlement);
  • T TOMATOES LLC (Khazar district, Zira settlement);
  • Kurdamir Agro LLC (Kurdamir district, the city of Kurdamir).

The ban on the supply of tomatoes and apples to Russia from the Republic of Azerbaijan came into effect on December 10, 2020, after repeated detection of the South American tomato moth (Tuta absoluta) and the eastern moth (Grapholita molesta) in consignments of products supplied to Russia.

Back on December 17, 2020, Rosselkhoznadzor allowed the supply of tomatoes from 4 enterprises in Azerbaijan. A few days later, 3 more companies received permission to export apples to Russia on December 21, 2020.  At the start of the new year, 15 companies in Azerbaijan were added to the list of possible tomato suppliers on January 1, 2021, and on January 25, 2021, restrictions on the supply of tomatoes and apples were lifted from 13 more companies of the Republic.

www.freshplaza.com

Temporary Price Increases for Fruits in Russia Predicted for Winter and Spring 2021

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According to preliminary estimates from the Horticulture Union of the Russian Federation, the apple harvest in the commodity sector amounted to 708,000 mt in 2020, which is 30% lower than a year earlier due to late frosts in a number of major producing regions. However, experts have not yet noted an increase in fruit imports in relation to the decline in the harvest.

The company Technology Growth believes that fruit and berry imports in 2020 remained at the level of 2019. Russia imported about 1.7 million mt of traditional fruits – apples, pears, peaches, cherries, and grapes. “This result was achieved due to the high harvest in 2019 and in the first half of 2020 there were very few imports. Before the New Year, our enterprises were selling products harvested last autumn,” explains the general director of the company Tamara Reshetnikova. “However, in 2021, due to a low harvest, the import of fruits will increase since its supply will be limited. Prices for all fruits will increase in winter and spring,” the company experts predict.

However, the growth in import volumes and prices will be temporary believes the Horticulture Union believes. If there are no weather disasters, the fruit harvest in 2021 will exceed the record figure of 2019. “The fact is that 2018 and 2019 became record-breaking years for the establishment of perennial orchards and this year they will begin to bear fruit. Accordingly, in the new year one can expect not only a record collection but also a decrease in prices on the shelf and a decrease in imports,” Mikhail Glushkov, director of the Horticulture Union told Agroinvestor.

The Russian Farmers Association is also optimistic. Its president Igor Mukhanin recalls that in 2019, there were 16,000 hectares of orchards planted despite the original plan of 10,500 hectares and in 2020, another 14,000 hectares were added. “Apple production annually increases by 150,000-200,000 mt and the productivity of orchards is growing. If such rates continue, then in five to six years, our country will completely replace its demand for marketable apples, which is 2 million mt against 1 million mt being produced now,” he said.

Mr. Mukhanin adds that in a few years when Russian farmers saturate the market with apples of their own production, they will be able to export them. “We have high export potential. We grow apples with minimal use of herbicides and pesticides – three times less than in Poland and five times less than in Italy. Due to the fact that Russia has cold winters and a temperate climate, we do not have such an acute problem with pests, there is no need to cultivate orchards all year round,” Igor Mukhanin emphasizes. He is sure that horticulture is the industry that could help in the development of rural areas.

www.east-fruit.com

Russia Bans the Supply of Selected Fruits and Vegetables from Uzbekistan, Armenia, Azerbaijan, and Turkey

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The list of new bans announced by Rosselkhoznadzor citing quarantine issues with supplies of vegetables and fruits to Russia as they unfolded this week.

– Ban on the supply of greenhouse tomatoes and peppers to Russia from the Fergana region of Uzbekistan due to the detection of the tomato brown rugose fruit virus (ToBRFV);

– Ban on the supply of dried apricots and all plant products to Russia from the Fergana region of Uzbekistan after the discovery of a quarantine object – the khapra beetle (Trogoderma granarium Ev.) – in a batch of dried apricots for Russia and the EAEU member states;

– Ban on the supply of greenhouse tomatoes and peppers from the Kashkadarya region of Uzbekistan due to the discovery of the tomato brown rugose fruit virus (ToBRFV) and for the same reason from the Navoi region of Uzbekistan;

– Ban on the supply of greenhouse tomatoes and peppers to Russia from the Armavir region of Armenia due to the detection of the Pepino mosaic virus (PepMV) in a batch of products;

– Ban on the supply of apples and greenhouse tomatoes from Azerbaijan to Russia due to multiple violations of quarantine laws. This, according to EastFruit, will also affect a significant part of the supply of these products from Iran since a significant amount of Iran’s products enters Russia in transit through Azerbaijan;

– Ban on the supply of greenhouse tomatoes and peppers from the Izmir and Antalya provinces in Turkey due to the systematic identification of quarantine objects such as South American tomato moth (Tuta absoluta (Meyrick)), Western California (flower) thrips (Frankliniella occidentalis (Perg)), Pepino mosaic virus (PepMV), tomato spotted wilt virus (TSWV), and tomato brown rugose fruit virus (ToBRFV).

– Ban, more than a month ago, on the imports of tomatoes and peppers from Grodno, Gomel, Minsk, and Brest regions of Belarus due to the detection of the Pepino mosaic virus (PepMV).

(more…)

Rosselkhoznadzor bans import of tomatoes and apples from Azerbaijan from December 10

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Starting fromDecember 10, the Rosselkhoznadzor banned the import of apples and tomatoes from Azerbaijan to Russia due to the detection of pests in products from this country, the Russian department said.

Earlier, the Rosselkhoznadzor reported to the Food Safety Agency of the Republic of Azerbaijan about cases of detection of objects quarantine for the EAEU member states in regulated products that are supplied to Russia.

The department noted that in order to prevent the import and spread of pests in Russia, the Rosselkhoznadzor prohibits the import of tomatoes and apples of Azerbaijani origin into Russia from December 10, 2020.

The Rosselkhoznadzor also clarified that since October 22, 2020, 17 cases of South American tomato moth (Tuta absoluta (Povolny) and eastern moth (Grapholita molesta (Busck)) have been detected in apple and tomatoes from Azerbaijan.

www.tass.ru

Georgia Exported over 7,800 mt of persimmons since start of season

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The Ministry of Environment and Agriculture of Georgia reported that Georgia exported 7,824 mt of persimmons (including the kinglet variety) from 1 August 2020 to 23 November 2020, which is up 14% than a year ago. In monetary terms, persimmons exports amounted to $4.2 million, which is 18% more than last year. Also, “during this period, the export price for persimmons increased by 4%,” the ministry said.

Russia received the most persimmons from Georgia at 3,377 mt (or 43% of the total export of this crop) followed in second place by Ukraine with 2,832 mt among export markets and Armenia in third place with 1,475 mt. Georgian persimmons are also exported to Belarus, Qatar, Moldova, Hong Kong, Kazakhstan, and Hungary.

According to official data, Georgia exported roughly 8,000 mt of persimmons in all of 2019. The main sales markets were Armenia (4,300 mt), Ukraine (2,700 mt), and Russia (800 mt). In monetary terms, exports amounted to $4.2 million.

Mass harvesting of persimmons in Georgia usually takes place from the second half of October to the second half of November. Persimmon fruiting in many modern orchards begins in September and continues for several months. Of note is that more than 100 hectares of intensive persimmon orchards were developed with the support of the state project “Plant the Future.”

Persimmons production has been growing in Georgia over the past 3 years. The harvest of persimmon amounted to 8,900 mt in 2017, 10,000 tons in 2018, and 14,300 mt in 2019.

The main regions of Georgia supplying persimmons to the market are the Kakheti region in Eastern Georgia, Imereti and Samegrelo regions in Western Georgia, and the Adjara region.

www.east-fruit.com

The share of imported vegetables in Russia may decrease to 10% in five years

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Over the next five years, the share of imported vegetables on the Russian market may decrease from 16% to 10%. This forecast is given by the Center for Industry Expertise of the Russian Agricultural Bank. According to the forecast, in 2019, 558,000 mt of tomatoes and about 100,000 mt of cucumbers were imported to the Russian Federation, and by 2025 the import of these products may decrease to 347,000 mt and 36,000 mt, respectively.

According to forecasts of the Ministry of Agriculture, this year the production of greenhouse vegetables will increase by 6.1%, to 1.25 million mt year-on-year, which will be a record figure. The Center for Industry Expertise of the Russian Agricultural Bank expects that Russian operators of greenhouse facilities will continue to increase production by an average of 7% per year. And the consumption of fresh vegetables in the country will grow by about 1% annually and will reach 115 kg per capita by 2028. Today it is  109 kg per capita.

Producers of greenhouse vegetables applied to the Ministry of Agriculture with a request to allocate 5 billion rubles from the budget of incentive subsidies to compensate for the part of the costs. As noted in the association “Greenhouses of Russia”, options for supporting the greenhouse industry needs to be intensified, as companies are faced with a decrease in consumer demand and the negative impact of the COVID-19 pandemic. As a result, the profitability of greenhouse operators fell to 5-7%.

www.kommersant.ru

The Main Buyer of Bielorussian Potatoes in H1 of 2020 was Ukraine, vegetables – Russia

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According to the Ministry of Agriculture and Food of the Republic of Belarus, in January-September 2020, the country’s organizations exported agricultural products and food products worth more than $4,2 billion, or 106,1% against the level of the corresponding period of 2019.

The export of crop products amounted to $363,8 million.

The most export-oriented are fresh vegetables – with a share of 44,5% of the total export of crop products, fruits and berries – 29,7%, potatoes – 7,7%, flax fiber – 3,6%.

The geography of export of crop products in January-September 2020 includes 39 countries of the world. The most volumetric supplies traditionally fall on the neighboring countries (the Russian Federation, Ukraine, Moldova, Kazakhstan) and the countries of the European Union (Germany, Lithuania, Poland, France).

Export of fresh vegetables amounted to 248,6 thousand mt. in the amount of $161,7 million. Vegetables were exported to 29 countries of the world, of which 78,5% – to Russia ($126,9 million), to Germany – 6,3% ($10,1 million), Lithuania – 4,9% ($7,9 million), Poland – 3,8% ($6,2 million) and other countries.

For 9 months of this year, 185,2 thousand mt of potatoes were exported to the amount of 27,9 million US dollars. The export geography includes 8 countries (Ukraine – 144,6 thousand mt, Russia – 29,2 thousand mt, Moldova – 10,1 thousand mt and others).

www.en.potatosystem.ru