U.S. struggles to crack Russian stone fruit market

Russia is the largest importer of cherries in the world and the second largest importer of peaches. Since 2005, cherry have increased more than twofold from 34,917 metric tons (MT) to a record 73,796 MT in 2010. Additionally, 228,200 MT of cherries are grown in Russia, including 162,500 MT of tart cherries in private orchards. In 2010, the import rate decreased to modest 3 percent compared with 19 percent growth in 2009 and showed negative growth during January – May 2011 period.

Imports are expected to be lower in 2011. Due to shipping advantages from the West American cherries have a limited niche in the Russian Far East. The demand for peaches and nectarines continues to climb. For the January-May 2011 period, imports went up by percent in volume and 157 percent in value, and seem to be on the way to breaking last year’s record. At this time, the States is virtually shut out of the market due to the length of delivery and heavy competition from European product.

U.S. share of the cherry market in Russia is negligible. In 2010, 97 MT of cherries were imported from the United to the Russian Far East, down twofold compared with 2009 due to the limited crop in the United States. Another limiting factor is the cost of delivery, which must be by air. However, with proper marketing, American cherries can find in upscale Moscow supermarkets, where the demand for expensive fruit is higher. American cherries have better, potential in the Russian Far East, where delivery in 21 days by ocean is feasible and higher prices on cherries.

Source: www.thepacker.com