Russian Fruit Market

COSCO Continues Trading with Russia, Unlike Other Shipping Companies

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The vast majority of the global container shipping companies have temporarily halted their cargo bookings to and from Russia due to Putin’s invasion of Ukraine. The Chinese ocean carrier COSCO Shipping, however, still offers services in Russia.

COSCO Shipping continues to transfer goods to Russia with its tanker fleet transporting crude oil, which is Russia’s major export commodity to China.

“COSCO is offering economic succour for Russia as it faces a barrage of economic sanctions from various governments,” said Sathiya Jalapathy, business fundamentals analyst at data and analytics company GlobalData.

On the other hand, MSC, which operates in Russia through its subsidiary MSC Rus, stopped accepting cargo bookings to and from Russia, covering the Baltic Sea, the Black Sea, and Far East Russian regions.

In addition, CMA CGM’s Russian subsidiary, with nine offices in the country, including Saint Petersburg, Novosibirsk, Yekaterinburg and Moscow, serving seven Russian ports, has suspended its operations.

Maersk has also halted temporarily its container shipping operations to and from Russia, announcing the suspension of its ocean and inland cargo bookings, while the Danish shipping company intends to sell its 30.75% stake in the Russian port operator Global Ports Investments.

Furthermore, HMM halted cargo bookings on two of its shipping routes to and from Russia, with low demand, with a capacity of 1,700 TEU on each container vessel, on the Busan to Vostochny and Busan to Vladivostok routes. However, the company stated that this stoppage will not have any impact on its performance and that it will fulfill previous bookings.

The Singapore-based Ocean Network Express has also suspended cargo bookings to and from Odessa in Ukraine, and Novorossiysk and Saint Petersburg in Russia, according to Global Data.

Moreover, German Hapag-Lloyd, which operates in the country through offices in Kaliningrad, Moscow, Novorossiysk and Saint Petersburg, has also stopped bookings to and from Russia, Belarus, and Ukraine.

However, essential goods such as medical equipment, food, and humanitarian aid continue to be transported according to the data and analytics company GlobalData.

“The decision by many global shipping companies to halt their services to Russia could put the country in a difficult position as it will struggle to import goods such as motor vehicles and spare parts, industrial machinery and equipment, apparel and electrical machinery,” commented Sathiya Jalapathy.

freshplaza.com

Russia Now Hopes to Replace European Imports with Goods from South Africa

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Russia wants to expand its commercial presence in Africa as recent sanctions are impeding the trade with its European neighbors. A meeting on supporting Russian organizations entering African markets saw “a proposal to expand the network of trade missions to Africa in priority countries for trade”, said the vice president of the Chamber of Commerce and Russian industry, Vladimir Padalko. This plan must now be implemented by the various Russian ministries, including those of trade and foreign affairs.

The European Union was previously Russia’s largest trading partner, with more than a third of Russia’s total imports from the EU, even after Russia’s annexation of Crimea, causing a general cooling of relationships. Economic sanctions imposed since the invasion of Ukraine have already made this trade difficult and expensive. Today, EU members are considering a Ukrainian request to expel Russia from the World Trade Organization and impose tariffs on trade with Russia, further discouraging Russian businesses.

Russia currently has four trade missions in Africa, including three in North Africa, Algeria, Egypt and Morocco. Its trade mission in South Africa has been greatly enhanced by cooperation within the BRICS, but Russia’s trade with South Africa remains minimal.

In 2021, South African exports to Russia totaled just over R6 billion and imports from Russia totaled R9.2 billion. Padalko stated that Russia hopes to source some of its current imports from Europe from Africa, including tea, coffee and fruit, which make up a significant portion of South Africa’s current trade with Russia.

freshplaza.com

SHAFFE Expects Difficult Conditions for Fresh fruit Exports to Russia and Ukraine

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The Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE) has reviewed the Russian and the Ukrainian fresh fruit import markets and expects increasingly difficult conditions to maintain supply to both markets.

In 2020, Ukraine imported 795 million USD of fresh fruit with over 48% originating from suppliers like Turkey (citrus), Ecuador, and Costa Rica (bananas and pineapples). Total exports of fresh fruit from SHAFFE member countries (*) reached USD$54 million in 2020, representing 7% of the total fruit imports market in Ukraine. The main suppliers to Ukraine from SHAFFE member countries included South Africa, which exported mainly citrus with a value of USD$16 million and which represented 30% of the total value of exports registered by SHAFFE member countries in 2020.

In 2020, exports of fresh fruit from SHAFFE member countries to Russia reached 643.084 tons, which represented 17% of the total fresh produce import market During the same period, the main species of fruits exported by SHAFFE member countries to Russia included apples, pears, and citrus, which together represented 80% of the total exports of SHAFFE member countries to this market. The exports of fresh produce from SHAFFE member countries have been on an upward trend, registering a 29% volume growth, between the period 2017 to 2020. South Africa and Argentina are the main suppliers of fresh produce to Russia and represent 69% of the total volume exported by SHAFFE member countries in 2020.

According to SHAFFE, foreseeable negative impacts could include reduced exports to the Russian and Ukrainian markets and hence the redirection and oversupply of citrus, apples, and pears to other destinations such as the EU, U.S.A., or others. This could lead to an oversupply of those markets with resultant financial losses for exporters. Additionally, the entity foresees that this situation could compound even further the negative impact of the current rise of production and logistical costs facing the Southern Hemisphere exporters and growers. Sanctions by some Western countries against Russian banks as well as SWIFT payments will lead to add to the risks faced by exporters. It is hoped that the situation will be resolved soon.

freshplaza.com

Chilean Cherry Exports are Expected to Increase by 9.8% to 387,268 mt

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According to the ASOEX Cherry Committee, which represents more than 82% of the volume of Chilean cherry exports to the world, Chile will export 77,453,626 boxes of cherries (5 kilos) or 387,268 tons of cherries this season, i.e. 9.8% more than in the previous season.

It should be noted that the current season is already underway. According to data from ASOEX, to date, Chile has exported 44,162 boxes of cherries.

“We have started a new cherry export season. We have prepared ourselves to deliver a high-quality healthy product to our consumers around the world. We have worked, together with the authorities of the Ministry of Agriculture and the SAG, to have a very good season. In addition, we are working to diversify our cherry exports. China will remain as the main destination for our fruits but we are projecting a significant increase in other markets. Thus, we expect China’s share will decrease from 91% to 87%,” stated Ronald Bown, the president of ASOEX.

“In general, we have had good weather conditions. We have not been affected by rain or frost, so we think our fruit will have good quality. The committee has worked, very conscientiously, on different recommendations to continue safeguarding and improving our fruit’s quality and safety. In addition, given the complicated logistics outlook in the world, we are working closely together as an industry to have a very good season,” stated Cristian Tagle, the Chairman of the ASOEX Cherry Committee.

“We have defined, together with the Cherry Committee and ProChile, a promotional campaign that accompanies this growth in cherry volumes and encourages greater consumption of the fruit. We will develop a mix of marketing actions, especially in China, as it is our main market, but this season we will also implement promotional campaigns in eight other markets: the US, South Korea, Vietnam, Thailand, India, Russia, Canada, and Taiwan,” stated Ignacio Caballero, ASOEX Marketing Director.

 

We invite you to the webinar “Import of Cherries from Chile to Russia 2021. Questions and Answers”. The webinar will take place on December 14, 2021, at 11.00 (GMT + 3). Sharif Christian Carvajal, Marketing Director for Europe, Asia and the Middle East of the Chilean Association of Fruit Exporters (ASOEX), more will tell in detail about the current cherry season in Chile, as well as the plans of the Association to promote the Chilean cherry in Russia. During the webinar, participants will be able to ask questions to the speaker.

You can register to the webinar here.

The webinar is organized by the ASOEX.

www.freshplaza.com

Iran Increased Fruit Exports to Russia by 50% in 2021

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Iran exported a record volume of fruits and nuts worth $196 million to Russia in the first three quarters of 2021. Fruit exports of Iran to the Russian Federation increased by 1.5 times in value terms in the first nine months of 2021 compared to the same period in 2020.

Andriy Yarmak, Economist at the Investment Centre of the Food and Agriculture Organization of the United Nations, told: “The growth in the supply of fruits and nuts from Iran to Russia is one of the reasons for the difficulties fruit suppliers from Moldova and Uzbekistan began to experience in the Russian market last year. Iran can offer a wide range of fruits and supplies them almost all year round, which distinguishes this country from its competitors.”

“Also, Iranian suppliers are active in promoting their fruits, while exporters from Moldova, for example, rarely resort to advertising their products. In particular, in the largest fruit and vegetable trading group EF Trade Platform in Telegram, Iran is often among the five most active countries, and Moldova is usually not even in the top 10.”

Apples are a key item of Iranian exports to Russia. In the first 9 months of 2021, Iran increased their exports to Russia 2.5 times to 125,000 tons. They are followed by kiwi, of which more than 37,000 mt were exported from Iran to Russia during this period, watermelons (27,400 mt), peaches and nectarines (26,600 mt), raisins (12,200 mt), dates (7,400 mе), cherries (7,300 mt), pistachio (7,100 mt), sour cherries (6,800 mt), table grapes (4,100 mt) and plums (3,400 mt). Experts note that these volumes may be underestimated since some of the fruits are exported from Iran to Russia through third countries.

www.freshplaza.com

Russia Sharply Increased Imports of Watermelon from Uzbekistan and Turkey, Setting a New Record

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In 2021 Russia will set a new record for watermelon imports. With several months still left till the end of the year, the record has already been set – as of the end of July 2021, imports of watermelon in Russia reached 46 thousand mt, while in 2020, in total, 38,3 thousand mt of watermelon were imported.

Thus, according to our estimates, by the end of 2021, imports of fresh watermelon to Russia may exceed 70 thousand mt for the first time, and the import volume will grow by about 80% compared to 2020’s record imports.

In certain circumstances, the imports of watermelons to the Russian Federation may even double. in 2021, watermelon prices across Europe were unusually low. Even if Russia could not directly import watermelons from Ukraine where farmers were ready to give them from the field for free, imports from Central Asia, where prices during the peak export in June-July, were also the lowest in recent years. (more…)

More Azerbaijani Enterprises to Export Apples to Russia

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The Federal Service for Veterinary and Phytosanitary Surveillance of Russia (Rosselkhoznadzor) has authorized more 11 Azerbaijani enterprises to export apples to Russia since September 14 under the guarantees from the Food Safety Agency (FSA) of Azerbaijan.

As reported, this became possible through the joint measures of the agency and relevant structures for removing restrictions on the export of tomatoes and apples from Azerbaijan to Russia.

Totally, as to date, Rosselkhoznadzor has authorized the import of apples from 65 Azerbaijani enterprises. The export potential of these enterprises is 144,767 mt, which is more than double the volume of apple exports to Russia in 2020 (66,924 mt).

trend.az

An Overview of the Plum Market in Ukraine, Moldova, Poland, and Russia

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Most of the largest plum growers in Eastern Europe are now selling their products cheaper than last year. However, it does not mean that all growers are dissatisfied with prices. Moreover, the market situation differs in each country. For instance, the plum season in Ukraine is the worst growers had in recent years, but for other countries, it is one of the best.

Given the challenging weather in the key EU plum-producing countries in the spring of 2020, as well as the record high prices in 2020, market participants hoped that prices in 2021 would not be lower than last year. However, only in Russia the average wholesale price for plums today roughly corresponds to last year’s level, while in Moldova, Poland and Ukraine, prices are lower than in 2021.

The most notable decrease of wholesale prices for plums, more than one and a half times, was in Ukraine. Last year, the price was higher, as a large part of the harvest was lost due to frosts. The areas planted with plums in Ukraine tended to expand since plums are in good demand in the European Union. Thus, in 2021 the plum harvest in Ukraine has grown sharply and prices have fallen. (more…)

New Problems for the Moldovan Apples on the Russian Market

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The season of duties exemption for several groups of food products, including fresh fruit supplied from Moldova to the Russian market, expired on March 31, 2021. As a result, according to preliminary estimates of Moldovan traders, they will have to subtract from the current prices for exported apples, depending on their variety and quality, approximately 0.60-0.80 MDL/kg ($0.03-0.04/kg).

For Moldovan trade enterprises, which bought apples at relatively high prices on the local market last autumn for export to the Russian market in spring 2021, this is a rather serious issue. Many exporting traders were already working on the brink of zero profitability in winter this year: the prices for apples in Russia were significantly lower than expected, and the supply volumes were significantly lower than in the same months of previous years.

Producers of apples, especially those of high quality, found themselves in an equally difficult situation. In the absence of customs privileges, the advantages of Moldovan goods are decreasing in the highly competitive Russian apple market, and due to the limited purchasing power, the potential for price growth even for high-quality fruit is apparently exhausted.

According to the estimates of the associations of agricultural producers and traders, by the beginning of April, about 50-60 thousand mt of apples of the 2020 harvest remain in refrigerated warehouses. However, considering their “residual quality”, only half of these apples can be sold on the “fresh market” at best.

east-fruit.com

Fruit Imports to Russia in January 2021 were Marked by a Drop in Supplies of Bananas and Apples

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Fruit imports in January 2021 remained virtually unchanged compared to the same month in 2020, but changes in the import structure were significant.

First of all, attention is drawn to the decrease in the volume of imports of two key items – bananas and apples. Banana imports to Russia fell by 12% to 115 thousand mt, while apple imports fell by 29% to 38 thousand mt in January.

Regarding the structure of Russian fruit imports in January 2021, the sharp increase in mandarin imports should be noted. The main increase in the supply of these citrus fruits was from Turkey, Pakistan, and Georgia. At the same time, the imports of mandarins from Egypt to the Russian Federation fell.

The import of oranges also increased, although not as sharply as the import of mandarins. Egypt became the main beneficiary here and increased supplies by 42% at once, in the same time the supply of oranges from Morocco to Russia fell by half in January 2021. The import of persimmons continues to grow rapidly – in January 2021, Russia imported 37% more of these fruits than in the same month of last year, and the main increase was provided by imports from Azerbaijan and Iran, which almost ousted Turkey from the Russian market.

In terms of countries, Moldova reduced supplies to Russia the most – by more than 30% in January. Moreover, the decline occurred in all key positions, except for fresh plums. Turkey increased its exports by 19%, Egypt – by 20%, Morocco, Azerbaijan, and Iran – by 5%, and Peru – by 30%. The decline in supplies from Ecuador was equal to the volume of the decline in banana imports.

Uzbekistan fell back to 24th place in the ranking of the main suppliers of fruits to Russia in January, having reduced exports by 11% to $2 million compared to last year. Georgia was among the 15 largest suppliers, having increased fruit exports to Russia in January 2021 2.3 times to $5.5 million – it exported almost three times more fruit to Russia than Uzbekistan.

east-fruit.com