EU: Long-term Russian ban could pose trouble for apple shippers

The recent ban Russia imposed on agricultural imports from the European Union has all fresh produce shippers worried. European exporters hope the situation can be resolved much sooner than the full year Russia's Prime Minister announced the ban would be in effect, but it's not certain how soon any resolution will arrive. For Europe's apple shippers, a 2015 without a lift of the ban could significantly affect their export season.

“I think the ban is quite bad for peach and nectarine shippers,” said Marc Peyres of Blue Whale, a French apple grower and exporter. “It's bad in the short term for summer fruit, but in the long term, I don't know.” Blue Whale doesn't export much fruit during the early part of their season, so the situation hasn't affected them yet, and it's not likely it will affect them directly in the coming months. But if the situation continues as it is into January of 2015, when they ramp up exports, the ban will directly affect them.

For the time being, Peyres is more concerned with how Russia's action will affect the industry as a whole. Because, even though they're not affected directly right now, the indirect effects of a ban on the market are almost certain be felt immediately.

“What is more problematic is how this will affect the entire European market,” said Peyres. “People are panicking, there will be changing of fruit and more fruit will come from the fresh market into the processed market, so you will have more Polish fruit in the processed market. So this will affect more than just direct sales.” For apple exporters specifically, the ban came on the same day that the World Apple and Pear Association released their 2014 apple forecast predicting a large apple crop. The 11.9 million ton crop is nine percent larger than last year's crop and 12 percent larger than the three-year average.

“The same day it's announced we have a big crop our largest customer, Russia, stops buying, so it's like a Black Thursday,” said Peyres. “It's a bad day for us, but it's not the first time something bad has happened. In the last 20 years there have been financial crises, currency problems and the like. So when you're working in an international market you are used to it. That's our life, so it's just one more element we have to work with.”

Poland
Poland is looking for new markets already and India is one fo the hopes for the apple exporters. Miroslaw Maliszewski - chairman of the Polish Fruit Growers Association said that different Polish apple exporters are currently preparing for a business trip to India. "India buys yearly 200.000 ton of apples, why not from us?" Maliszewski predicts that Poland this yearalready will export to India. Besides India Miroslaw also sees opportunities for export to America, North Africa and the Persion Gulf.