Potato prices Russia +18%, more demand for seed potatoes
Iran wants to export to Russia, but is dealing with problems
The additional EU sanctions against Russia that were postponed earlier, will come into force after all. The trade limitations mainly affect the financial sector as well as oil and gas companies. Russia responded with counter-sanctions. The country is turning away second-hand cars and textile from Europe at the border. As with the earlier food boycott, the Kremlin claims that Russia is able to produce certain kinds of fabrics themselves. The threat of a closed airspace is also looming. The Russians are considering closing their airspace to Western airlines on flights to Asia. By closing the airspace, these flights would have to make a significant detour.
Iran receives shopping list
The previously announced partnership between Iran and Russia appears to be taking shape. The Iranian secretary of the food industry admitted in an interview that a list has been made of products required by the Russian consumer. The shopping list was put together with help from Russian retailers and importers. The list includes: potatoes, bell peppers, bananas, watermelons, oranges, mandarins, grapes, pears, peaches, tomatoes, cucumbers, peas and beans.
The Iranian exporters will have to work together, for which they can report to a specially established organization. Although the country is at an advantage thanks to the low rial exchange rate, and produce can be easily shipped to Russia over the Caspian Sea, the country is also facing water shortages.
More seed potatoes to Russia
The ban is purposely circumventing trade in seed potatoes. During a potato seminar in Brussels, earlier this week, Russian Ann Oleynik talked about the potato industry in her homeland: it’s gradually becoming more modern and large-scale. Because of this development, demand for high quality seed potatoes is increasing. Russia annually imports over 22,000 tonnes of seed potatoes, roughly half of which comes from the Netherlands. The small Russian farmer uses their own seed potatoes and grows traditional varieties, but large-scale cultivation with better potato varieties is being stimulated by the Russian authorities.
Crimean tomatoes in Moscow
Crimea has begun to supply various fruit and vegetables to Russia. A first batch of 20 tonnes has arrived in the Moscow region, according to a press release from the regional government. The shipment contained tomatoes, white grapes, bell peppers and apples. Previously, the Moscow Oblast and Crimea already reached agreements on fruit and veg shipments. The Muscovites have reportedly offered to supply cooling facilities and help out otherwise during the harvest period.
Russian potato prices +18%
The prices for potatoes have increased significantly recently. Last week, prices went up by 18%. Last year, prices were 25% below the current level. Growers are able to sell potatoes for 20 cents per kilo in the north, and 26 cents in the south of Russia. The price increase results from greater demand for products by wholesale companies. Those companies have begun storing potatoes.
Krasnodar wants to cultivate truffles
In the Krasnodar region, in the south, bordering the Black Sea, the regional development ministry announced an ambitious plan. The region wants to invest in truffle cultivation, building a processing plant as well to go with it. The truffle, which is hard to cultivate, will have to be grown on an acreage of 20 hectares. The processing plant will have an area of 20,000 m2. “We are using the most effective technology, comparable to techniques used in Australia and New Zealand. There is no other project on such a scale in Russia,” the regional government reports with a certain measure of pride. The project’s costs are estimated to be 203.9 million roubles (5.5 million dollars).