The Russian market is more complex than in previous years, mainly due to the oversupply of fruit from various origins at the same time and a lower demand for South American fruit, as well as some quality problems.
"This year the market has been slower and more complex," said Álvaro Irarrázaval, of Viasa Food. Viasa distributes fruit from Chile, Ecuador, Peru and Argentina for its Russian clients. Every year, Viasa Food exports around 500 containers of Ecuadorian bananas, 350,000 boxes of Chilean grapes, apples, kiwis, plums, nectarines and cherries, 130,000 boxes of Peruvian grapes, pomegranates and citrus and 50,000 boxes of Argentinian pears and citrus. Its strategy is to supply quality fruit all year round for its Russian clients, helping them grow and gaining their loyalty to its brands.
"In Chile's case, there were issues with the fruit's quality," explained Irarrázaval, "mainly with the Thompson and Superior varieties. The high relative humidity and expensive cost of labour affected the fruit's quality and condition, making it unsuitable for long distance exports." Irarrázaval believes that a good part of the fruit exported should have gone to the domestic market and not Russia.
"In general, the bigger supply of Peruvian grapes, Ecuadorian bananas, Argentinian fruit and Chilean Thompson, along with the lower domestic demand and greater volumes imported from South Africa, India or Egypt, has driven prices down in Russia," said Irarrázaval. The financial crisis in Europe and the market problems in the US and Asia took their toll on profitability. As a result of this, the Russian market became attractive for South American exporters, as they pay fixed prices.
Export volumes did not fall, so all quality problems had a strong impact on the fruit's final value. But even if prices and demand in Russia are currently low, Irarrázaval is optimistic, not only about the Russian market, but also about Eastern Europe and the former Soviet countries as a whole, which they will continue to provide with great quality South American fruit.
"We wish to give them the possibility to obtain good fruit at good prices, so that they, in turn, can ship it to faraway destinations, obtaining better results," concludes Irarrázaval.
For more information:
Álvaro Irarrázaval
Viasa Food
+56 2 2 3569201
