Varying figures are emerging on the situation in Russia. Where one study concludes prices are going down for certain products, other studies see total prices for food go up. As well, according to Russian researchers, a majority of the population rates domestic produce more highly than imported products. The Czechs appear to have found a way to export to Russia through Kazakhstan. Meanwhile, the Azerbaijanis appear to have shot themselves in the foot. The country exported more, but import also increased.
Azerbaijan more import and more export
The plans of the government in Azerbaijan, to significantly increase fruit and vegetable exports to Russia, has a downside. The import increases, just like the prices on the domestic market. The government denies that increasing prices are connected to exports. Azerbaijani website Azernews.az reports that, during the first six months of this year, export to Russia has already doubled. The government is also denying that all agricultural produce from the country is exported to Russia.
This year, Azerbaijan imported 10% of greenhouse vegetables and pumpkins. That's 20.5% more than the same period a year before. Prices for fruit and vegetables have gone up, but according to the government, they're still comparable to last year. In July, prices for different products were remarkably lower compared to 2013. Cabbage prices were 25% lower, onions yielded 21% less, and garlic prices went down by 15%. For other products, prices also saw significant relative decreases: cucumbers -13%, apples -21%, strawberries -12% and plums -10%. According to the government, prices are still 4-5% below last year's level, despite the increase.
Palestinians also want to export
The Palestinians also want to export to Russia. Both parties are reportedly discussing a trade agreement. The Palestinians hope to start exporting in the near future, with "high quality fruit and vegetables."
Again illegal fresh produce on Russian market
Although the borders are officially closed, banned products still find their way to the Russian market. In a warehouse in Samara, roughly 1,000 km east of Moscow, Russian authorities discovered banned products during an inspection. Paraguayos from Spain and mushrooms from Poland, among others, were found in the warehouse. The owners of the products and the smuggling route followed by the products, are being investigated.
Russians see no added value in imported produce
The Russian consumer doesn't seem worried about the food ban yet. Website npr.org interviewed several people at a market, and the general sentiment varies from indifferent to patriotic. Russians also prefer domestic cultivation over import. A study shows that, in 1995, 54% of the population found the quality of domestic produce better, in 2014 that went up to 64%.
A side note to these figures: mostly people of 60 or over are of this opinion. 74% of interviewed elderly prefers Russian produce. Also, the share of people who think Russian produce is of comparable quality to imported products, went up from 16% to 24%. The majority of people with this opinion lives in Moscow and St. Petersburg (48%) and is between 18-24 years old (32%). Just 8% of those interviewed found imported products to be better than Russian. The ban seems to have little impact. Of the respondents, 34% says they can do without Spanish citrus. The study was carried out by a Russian research company, which doesn't add to the reliability of the figures.
Vegetables cheaper, fruit more expensive in Russia?
In August, the consumer price index was at 100.2%. Over the previous half year, that was 105.6%. Prices for some products, such as potatoes, tomatoes, carrots and onions, have reportedly gone down in August, while prices for lemons, oranges and pears went up. Prices for other banned products, such as meat and dairy, did go up.
According to other sources, prices are actually increasing much faster. Statistical research bureau RBK, for instance, says food prices went up by 10% in August.
Volgograd region sees opportunities
A processing plant in Volgograd, Southern Russia, thinks they can profit from the ban. The company is hoping to attract investors to give the outdated factory a boost, and increase production of tinned fruit and vegetables. At the moment, production is still at 5,000 tonnes a year. The factory is cooperating with local growers, who are reportedly enthusiastic about the plans.
In the same region, a new soft fruit farm is supposed to open this autumn. The soft fruit is cultivated for industrial purposes, supplying over 100 soft fruit varieties, which can be cultivated in the local climate. The harvest would amount to 15-17 tonnes per hectare, and the varieties are reported to be more resistant to bad weather.
Czechs choose Kazakhstan as go-between
The Czech Republic wants to use Kazakhstan as a go-between for export to Russia, in the same way the Poles are using Belarus. Through re-export, the products could then enter the Russian market. The Russian authorities, however, are working to intercept these products. Russia forms a customs union together with Belarus and Kazakhstan.
In the Czech Republic, prices for apples, for instance, are reported to have gone down by 20% due to the ban. For vegetables, prices have also gone down by 30-50%. The effect of the ban is mainly an indirect one: other European countries are dumping the products on the Czech market. Poland is reportedly offering the apples at a minimum price, for instance, putting the entire market under pressure.
Germans angry with Aldi
German farmers are angry with retail chain Aldi, which lowered the price despite the Russian boycott. They accuse Aldi of abusing the situation by optimizing purchase prices. In Germany, prices of dairy products, vegetables, fruit and meat products are under particular pressure due to the boycott.