The Russian phytosanitary service reports postponing plans to lift the sanctions. The service wanted to relax the restrictions on meat and potatoes, but blames the EU for not appreciating this step. The EU denies that there have been talks. The inspection does visit Moldovan apple growers. Afghanistan reports having signed an agreement with Russia. In exchange for fruit, Russia will supply oil and gas to the country. Russian prime minister Medvedev announced plans to invest 50 billion roubles in agriculture this year. Due to the weak rouble, Metro could lose 200 million Euro. On the one hand prices of carrots and cabbage went up and on the other hand supermarkets are dumping prices.
Russia postpones lifting sanctions
Russia has postponed the plan to partially lift the ban on pork. The Russian inspection planned on lifting the restrictions on the export of meat, meat products and potatoes for France, Hungary, Italy, Germany, Denmark and the Netherlands, but those plans have now been put on hold. The head of the inspection says Russia wanted to take a step towards resolving the conflict, but the EU does not appreciate this step. The European Commission says there's been no progress in the talks with Russia, and that there hasn't been contact with Russia. Last week, the EU extended the sanctions against Russia by half a year.
50 billion roubles for agriculture
Russian prime minister Medvedev announced he would set aside 50 billion roubles (over 650 million Euro) for development of the agriculture sector and social stabilization. A mechanism has to be established to compensate for the costs of seasonal labour and investments. Russia also wants to subsidize the costs on loans for agricultural companies.
Russian cabbage growers stop price increases
Growers of white cabbage in Russia have stopped increasing the prices, since the competition from imported cabbage is growing, Fruit-Inform reports. Russian wholesalers are said to move to Polish white cabbage imported through Belarus, Fruit-Inform writes. White cabbage from Dagestan costs between 26 and 35 cents per kilo. For imported cabbage, the price is between 39 and 45 cents per kilo. Last week, prices for Russian cabbage went up due to increasing demand, with import impeding this growth. The price for cabbage is 2.5 to 3 times higher than last season.
Weak rouble could cost Metro 200 million
If the exchange rate of the rouble to the Euro remains around 80, losses for retailer Metro could go up to 200 million Euro. Metro is one of the four biggest supermarket chains in Russia, after X5, Magnit, and Auchan. The Russian part of Metro made a revenue of 5 billion dollars in 2013, which is 9% of the chain's total revenue. Last year, Metro halted plans to go public with a part of the Russian branch, following the turmoil surrounding the conflict in Ukraine.
Carrot prices doubled
The carrot prices in Russia are twice as high as last season, Fruit-Inform reports. The prices are around 27 to 34 cents per kilo, with some growers getting even higher prices. Many growers have already sold all of their stock, and the bigger players are only selling on a contract basis, which caused the prices to rise. Supply of cheaper carrots from Ukraine also wasn't able to keep prices down.
Supermarkets dump prices
In the Russian region of Pskov, where the public prosecutor is looking into price hikes in supermarkets, the supermarkets are selling fruit and vegetables at rock-bottom prices. Earlier this week, consumers saw plum tomatoes offered at Pyaterochka for 189 roubles (2.46 Euro) instead of 209 (2.72 Euro). Cucumbers were also offered more cheaply. At Magnit, tomatoes and cucumbers were also on sale. Tomatoes cost 95.5 roubles (1.24 Euro) there.
Russian media looking into price changes
Following reports on price increases, Russian website vzsar.ru decided to look into the situation. The public is asked to take pictures of price tags and send these to the editors. On January 30, the editors posted a photo with a 399 rouble (5.19 Euro) price tag for a kilo of vine tomatoes. According to the website, that makes tomatoes more expensive than the average price for meat, which is between 4.50-4.95 Euro per kilo. At Auchan, blue grapes from South Africa can be found for over 502 roubles (6.53 Euro) per kilo.
Russia visits Moldovan apple growers
Following negotiations on lifting Russia's boycott against produce from Moldova, the Russian phytosanitary service is visiting apple growers in Moldova. The inspection is to show whether the Moldovans are meeting the requirements.
Afghanistan trades fruit for oil and gas
Afghanistan reports having signed an agreement with Russia. In exchange for fruit, Russia supplies oil and gas to the country. Through this deal, fuel prices in Afghanistan can go down. Traditionally, Afghanistan has only traded with neighbouring countries.
Monsanto to Russia
Monsanto has plans to open a branch in Russia, in order to evade the effects of the weaker rouble. A new branch is also planned for Ukraine, which will focus on corn. Monsanto sees many opportunities in Ukraine and Russia.
Growers ask for cheaper fertilizers
Russian growers have asked the government and manufacturers of fertilizers to only increase prices by the inflation rate. Otherwise, the growers say, they would lose their competitive edge to growers in Turkey and Azerbaijan.