EU extends compensation for growers
The European support measure for growers who are affected by the Russian sanctions, was extended. The compensation is available until June 30, 2015. The compensation is based on the direct export figures to Russia for these products over the past three years.
Oligarchs profit from boycott
The sanctions imposed by the West against Russia following the conflict in Ukraine, may turn out well for Putin's friends. Since the dissolution of the Soviet Union, Russia has had a number of extremely rich oligarchs. Gennady Timchenko is one of them. He earned his capital through the oil trade. After the boycott, this oligarch invested in one of the largest apple growers in Russia, giving Timchenko 40% of the shares in this company. The company in Southern Russia has 800 hectares. There are plans to increase the acreage by another 500 hectares. According to opposition leader and former minister Milov, Timchenko isn't the only one to profit from the sanctions. He sees these super rich Russians follow a similar pattern. Where the foreign investors are leaving, the extremely wealthy oligarchs are jumping into this gap.
Expectations retail Russia
Russian retail is facing a difficult period, as evidenced by the conclusions from the report on Russian retail by research group Conlumino. The slower economic growth is lowering the growth expectations of the sector. Apart from that, the growing middle class in the cities is a positive development for sales. The competition of online purchases, also through foreign websites, is increasing. The growth can mainly be found in modern concepts and the demand for organic products.
Price increases expected
Russian media expect prices for products including fruit and vegetables to increase in the coming months. Some estimations mention an increase of 25% until June. The cause, apart from the usual seasonal fluctuations, is that it turns out to be difficult to switch to other suppliers in South America, Asia and Africa. In addition, the weaker rouble also plays a part.
Russia stops 100 tonnes from Belarus
The Russian phytosanitary service reported having stopped 100 tonnes of fruit and vegetables from Belarus at the border. This concerned transport to other countries. Since the start of this year, transport through Russia is only allowed through a limited number of checkpoints. The reason for this limitation is that too many products for transport have disappeared off the radar in Russia.
Exporters Pakistan want to go to Russia
Exporters from Pakistan are calling on their governments to promote the export to Russia. The relationship between the two countries is good, but according to the exporters, the trade still benefits insufficiently from that. The export of potatoes still doesn't make full use of the opportunities, partly because of the weaker position of the rouble. The exporters are looking at the citrus exporters, who began with the export earlier. In addition, India took steps to increase the export, causing additional competition for Pakistan.
Armenia doubles export
According to Armenia's agriculture minister, the country is able to double, and perhaps even treble, the export of fruit and vegetables to the Eurasian Economic Union. Last year, the export had already doubled, only the export of apricots was disappointing due to a bad harvest. All in all, the fruit harvest amounted to 296,100 tonnes of fruit. That's 42,000 tonnes less than in 2013. The cause for that is the frost in spring.
German vegetable growers hit hard
In Germany, growers of cabbage, carrots and celery are hit hard by the Russian sanctions. In addition to the closed borders, last year's harvest was also bigger. This is written by the Deutsche Bauernverband. Consequence: decreasing prices and packed warehouses. In the north of Germany, a shortage of storage space is even looming. Fruit growers were confronted with a similar scenario. The prices went down from 60 cents per kilo to 15-30 cents per kilo. A storage shortage also loomed for the fruit. Nevertheless, at the end of 2014, more fruit was sold.