Moscow makes Top 3 in retail market
Russian cucumbers to UAE
Minister Dijsselbloem, in his weekly interview with RTL, called the damages of the Dutch sanctions, very 'limited'. The minister admitted that the sanctions are difficult for individual companies, but Dutch enterprise is so strong that other markets are being sought. The sanctions have been effective on the Russian side. It would be better if the sanctions were lifted, but that is a political matter where Russia would need to take the first step. Click here to view the broadcast (Dutch).
The sanction is set to cost the European economy 40 million Euros in damages, where the largest portion would come from the Netherlands, Germany, Poland, Estonia and Lithuania.
BigMac more expensive in Russia
The price for a BigMac in Russia has increased. McDonald's increased the price by 2.2% to 94 roubles ($1.77 USD). Other fast food chains, such as KFC also increased their prices, just like Apple. The price of a BigMax says more about an economy that you might think at first glance. The Economist thought up the 'BigMac index' back in 1986. This index follows the theory that currency values are at the point of movement over a long period time, to the point where a shopping basket will cost the same in every country. The economic terms, this is called Purchasing Power Parity (PPP). By examining the price of a BigMac, which is comparable throughout the world, it is possible to conclude which currency will be undervalued and also which will be overvalued. An example: A BigMac cost $4.80 in America back in July, where the same hamburger cost $2.73 in China. Russia was 25-50% too low in July. The Yuan was 43% undervalued in this example. Click here for an overview of the BigMac Index.
The Russian organisation FBK, calculated that the Russian consumer has spent more than 45 billion roebels (690 billion Euro) on food since the boycot. This is an increase of over 3%. Russian retailers raised the prices and have benefited from the reduced supply. Money spent on vegetables have seen a huge increase of 16%.
Syria starts with export
A second ship with 1500 tons of citrus has already left the port in Lattakia, Syria with Russia as its destination. The first ship left the Syrian haven on the 17th of November. It is expected that 25,000 tons of citrus will be shipped monthly from Syria to Russia through the end of April.
Russia starts export to the Emirates
According to reports, the agriculural complex Churilovo will not only be supplying vegetables to the local region, but will also be exporting to the United Arab Emirates shortly. It is a lucrative business according to the director of the complex. Air transport for cucumbers costs 40 roebels (60 eurocents) per kilo, transport by sea costs 30 roebels (45 eurocents) per kilo, while cucumbers are purchased in the Emirates for 300 roebels (4.53 Euro) per kilo, calculates the director. Another advantage of the oil state is that customs clearance moves quickly for produce. China is also known to be interested in Russian cucumbers.
New distribution center in Kraj Karsnodar
The local ministry of agriculture and the processing center in Kraj Krasnodar have developed a new concept for the growing and processing for the fruit and vegetable sector. There are plans to open seven distribution centers in the area.
Kraj Krasnodar is the largest fruit producer in Russia and the third largest producer of vegetables. Further growth in the sector has been stunted due to the lack of a good system for planning and implementation.
There were more than 30 storage facilities for fruit and vegetables in Kraj Krasnodar in 2010, along with 5 wholesalers with a total capacity of 145,000 tons. A delegation from the ministry and the sector visited shops and wholesalers; ranging from growers, individual businesses, to cooperations. The information that the delegation received during their visit, will form the base for the sufficiency of the infrastructure program, so that less products will need to be imported.
Moscow organises congress about investing in Greenhouses
The Moscow region has planned a conference in March 2015 regarding the building of greenhouses. According to authorities, produce can be harvested in a greenhouse up to four times a year, but there are still questions about investing in the sector. The congress will need to offer more clarity about the risks involved with the greenhouse sector.
Moscow in Top 3 of attractive retail markets
The Russian capital is third on the world ranking of attractive cities for retail development, just behind London and Paris. This is according to research from investment and management funds company JLL. Moscow scored better than Milan and Madrid. St. Petersburg is also to be found in the top 20. According to researchers, Moscow could be in line to overtake Paris in the future. In terms of growth, only Istanbul is comparable to the Russian capital.
Turkey wants to double export
The Turkish government said it would like to double agricultural exports to Russia next year. Export is expected to reach 1.3 million dollars. Turkey is profiting from the sanctions and can therefore increase its export. The country is fifth in terms of volumes. In 2013 the export was 1.68 million Euro.
Russia: No plans to boycott Marocco
In a press release, the Russian phsytosanitary service has has denied rumors that it planned to boycott Morocco. The inspection works together the Moroccan inspection service to improve the controls.
Moscow seeks contact with Zimbabwe
A Russian trade delegation visited Zimbabwe and showed interest in the trading of agricultural products. Russia seems to be interested in the import of citrus and there may be plans to set up a breading center, which Russia would provide with good quality seeds.