Frank Döscher 2nd from left and Björn Wieneke on the right from Elbe-Obst:
Exploring new markets in the Middle East
The import ban from Russia for European fresh produce hits the growers in the European Union pretty hard. Growers of fruit and vegetables are affected. The European countries face considerable loss of revenue. Because of this issue we spoke with Frank Döscher, CEO of Elbe-Obst Vertriebsgesellschaft mbH and also an apple exporter. We asked him how the import ban affects his business.
Elbe-Obst Vertriebsgesellschaft mbH is exporting about 10% of their cultivations. How do you compensate for the Russian import ban on European goods?
Compensation is the right word for this case. The export embargo is very difficult to avoid, since it is clearly defined by the people involved. We try to reach new markets in order to free us from Russia. Fortunately the ban doesn’t affect us as hard as other corporations or countries.
Which new markets do you want to reach?
We aim especially for the Scandinavian and English market, but also the United Arab Emirates and the Middle East. But all other European producers also try to reach there. We all need to do something to compensate for Russia.
Do you think that it will be possible for you to trade in Russia again this year?
I don't think that anything will change in the near future. Unless there are changes to the European sanctions against Russia or that the recession in Russia becomes so drastic that Russia has no choice but to authorized trade again. But currently I see no end.
Producer prices for apples have recently almost halved and apple producers have an oversupply. In this context, how does it all effects the price?
Since the beginning of the season the prices have not gone below the cost of
production. The situation in the new year is currently unstable. Because of that the price pressure is pretty high.
Regarding market development, can you give us a brief outlook for the second half of the season?
The first four months we thought the market situation would improve. But currently it is too early to observe this tendency. Some areas are not ready yet and still operate with aggressive prices. In contrast, we currently have only controlled atmosphere stock on offer. I hope that the prices go up in the near future, but it is pretty difficult to say just now.
For more information:
Frank Döscher
Elbe-Obst Vertriebsgesellschaft
Tel: +49(0)4141-9531-850
Fax: +49(0)4141-9531-950
fdoescher@elbe-obst.de