The concerns about price increases in the winter months due to insufficient storage capacity in Russia, are not shared by everyone. The government of the Omsk region is not expecting problems, there's even said to be enough to supply to other regions as well. German retailer Metro wants to open additional stores in the centre of Moscow. In Ukraine, the harvest turned out higher than last year. Because of the recently imposed boycott, Ukraine will have to focus more on the domestic market, the government thinks. Greenhouse producers in Ukraine appear not to suffer much from the boycott: the seasons are practically over.
Omsk ready for winter
While some Russian regions are expecting higher prices in the winter months, partly due to insufficient storage capacity, the Omsk government doesn't think it will run into that problem. The region is said to be self-sufficient for the most important vegetables and potatoes. Only the cucumber harvest is disappointing, due to the cool summer. According to statistics, potato harvest amounts to 800,000 MT, part of which can be supplied to other regions in Russia. For beetroot, things are looking rather similar, the region only has to import extra for carrots, garlic and onions. The region is said to have around 100,000 MT of vegetables in storage, some of which until June 2015. The regional government is also working on a supply of apples and bananas. A potato processing plant also has to be built, and investments are made in an additional 1050 ha of irrigated farmland.
Supermarket Metro wants to expand in Moscow
German retailer Metro is developing a new and compact store size for the centre of Moscow. The retailer emphasizes that, through this formula, Muscovites will have easier and faster access to the supermarket. Metro is also looking to develop convenience stores for Moscow.
Focus on domestic market
Ukraine must focus more on the domestic market, according to the Ukrainian minister of Agrarian Policy and Food. Russia closed its borders to Ukrainian fruit and vegetables, after a dispute over country of origin labels on the produce. Russia imported 9.28 billion worth of fruit and vegetables from Ukraine last year. The sanctions would be lifted if Ukraine labels the products in the manner required.
Greenhouse producers Ukraine hardly hit
Ukrainian greenhouse producers seem to be unaffected by the Russian boycott. The cucumber season is over, and the tomato season is nearing its end. The volumes that are still available, are now sold domestically, and a number of growers are looking at Belarus. Prices for cucumbers and tomatoes are going down fast.
Good harvest Ukraine
On October 1, the total potato harvest amounted to 23.3 million MT. That is 2 million MT, or 9.4%, more than in 2013, the Ukrainian ministry reported. The vegetable harvest amounts to 7.6 million MT, which is 500,000 MT (7%) more than last year. Harvests in the east of the country, however, are 41.2% lower. In Luhansk, 167,400 MT was harvested, which is 117,200 MT less than last year. The annexation of the Crimea and the problems regarding Donetsk also create losses of between 450,000-570,000 MT.
Half Iranian melons suitable for export
The Iranian organization of melon growers is very satisfied about its own produce and the export opportunities to Russia. About 50% of the melons are said to be eligible for export. Iran is hoping to develop a sustainable relationship, looking to secure a permanent market share.
Turkey exports to Russia en masse
Turkey is filling up the shortage of food in Russia, website deutsche-wirtschafts-nachrichten.de is reporting. During the first nine months of this year, Turkish producers exported 53 percent of their vegetables to Russia. Turkey appears to take no notice of EU guidelines. Brussels had previously warned all young industrial countries against exporting fruit and vegetables to Russia. But because of the Syria crisis, Turkey feels strong enough to brush aside the regulations from Brussels.
Compared to the first nine months of last year, export of fresh vegetables to Russia increased by 30%, amounting to 413,602 tonnes. Export revenue from export to Russia increased by 9%, to 292 million US dollars (228.8 million Euro). That makes Russia the most important market for Turkish vegetables, followed by Bulgaria, Germany, Ukraine and Romania.
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Read all articles from Dossier Russia here.