Once again, statistics show that prices of imported products in Russia are generally on the rise. Bananas, pears and apples became more expensive. The main cause is the exchange rate. To help get the economy going, the Russian government recently sold 22 billion in American government bonds. Moldovan exporters are unhappy about the prices they're getting for apples. Romanian importers have set the price to a maximum of 0.22 dollars per kilo. In Poland, prices for Idared went up, but the price is still below last season's selling price. Polish growers again took to the streets, demanding more government support. In Belgium, the apple sector is hit harder than the pear sector, while fewer apples were exported to Russia. Export volumes from Latin America are also lower than in previous years. Russia was a big client, but due to the decreasing value of the rouble, exporters are worried.
Russia sells American government bonds
To supplement the country's financial reserves and to get the economy going again, Russia sold 22 billion in American government bonds. Last year, Russia sold a total of 45 billion in these securities. That means Russia still has 86 billion in American government bonds, a record low since 2008. All in all, Russia's financial reserves went down by 124 billion dollars last year. That means the sum of capital reserves is now 368.3 billion, the lowest amount since April 2007.
Moldovan apple growers unhappy about export prices
Apple growers in Moldova are unhappy about the prices Romanian importers are offering for apples. The Romanians are prepared to pay between 0.18 and 0.22 dollars per kilo, while last year the price was 30% higher. The Moldovans, however, have no alternative. Russia had always been the most important market, but since the borders have been closed, the apples have nowhere to go. Despite the free trade agreement Moldova signed with the EU, the exporters are facing a lot of competition on the apple market.
Polish apple prices going up
The prices for Idared apples in Poland have gone up. The price is between 14 and 26 cents per kilo, 8% higher than a week before, but still twice as cheap as last season. Last year, the prices were between 25 and 40 cents per kilo at this time of year.
Last week, Polish growers took to the streets in Warsaw to demonstrate. Farmers also took to the streets in other cities. The protesters want more subsidy, and are hoping for more support in the coming months. About 150 protesters have set up a camp in the Polish capital.
Belgian apple sector hit harder than pear cultivation
Belgian apple sector hit harder than pear cultivation
Although volume-wise, fewer apples than pears were exported from Belgium to Russia, the apple sector is still hit harder. According to the Association of Belgian Horticultural Cooperatives, there are several causes. The main one is that Poland is flooding the market with apples, putting prices under pressure. In addition, the good apple harvest and mediocre pear harvest also play a part.
Less demand for potatoes and traditional vegetables
According to Fruit-Inform, demand for potatoes and traditional vegetables (white cabbage, onions, carrots and beetroot) has decreased. The supply of these products increased. Growers decided to offer more produce, in anticipation of higher prices growers left products in storage for a longer period of time, but in view of the decreasing quality, more growers are deciding to sell after all. The prices, which had gone up day by day in the past weeks, have come under pressure from the increased supply. Incidentally, growers with high-quality products still keep supplies low, in anticipation of higher prices.
As a result of the boycott, the product range on Russian shelves has decreased, it turns out to be difficult to find new suppliers. For European products, for instance, the Turkish equivalent often turns out to be of inferior quality. For exotic products, which were often transported through the Netherlands, importers are seeing another problem. Although transit is allowed, this often makes for a lot of paperwork, causing importers to avoid these products.
Russia considers export tax and lowering import duties
Russia considers export tax and lowering import duties
The Russian government has to levy an export tax on grain and corn, and lower import duties on sugar and fresh produce, the head of the Russian Antimonopoly Service thinks. Both measures are to influence prices. Through an export tax, grain and corn would lose their competitive edge on the international market. In theory, it would then be more interesting to start selling the grain domestically. The authority is also pleading for a lowering of import duties on vegetables, fruit and sugar. That makes import cheaper, so prices can go down. This reduction on import would have to last until the next harvest season in Russia.
Apples twice as expensive
The price of imported apples has become at least twice as high as in the same period last year. Apples are now being offered for 60-75 roubles (0.99-1.10 dollars) per kilo, while a year ago that was 30-35 roubles (0.84-0.98 dollars) per kilo. The big price increase is mainly attributed to the devaluation of the rouble. Converted to dollars, the price increase is 15%.
The apples grown in Belgorod are also yielding more. The growers in the Russian region received 2 to 2.5 times more for their apples late last week, compared to the same period a year before. The price is 0.66-0.84 dollars per kilo. Last year, the price went down to 0.28 per kilo mid-February. The price increase is caused by the volume in storage going down. Most growers are selling the last part of their stock late January, a handful are able to extend the season to mid-March.
Banana price +16%
Bananas also became more expensive. According to statistics, prices increased by 16% last week. Exporters are asking 0.96 to 1.03 dollars per kilo, while a week earlier that was still 0.95 dollars per kilo. According to market experts, prices are 2.5 times higher than last year.
Banana price +16%
Bananas also became more expensive. According to statistics, prices increased by 16% last week. Exporters are asking 0.96 to 1.03 dollars per kilo, while a week earlier that was still 0.95 dollars per kilo. According to market experts, prices are 2.5 times higher than last year.
Pears three times as expensive
Just like bananas and apples, imported pears have become more expensive. The prices for pears from Serbia on the Russian market tripled compared to last season's price, reports say. Pears are yielding 1.60-1.80 dollars per kilo. The price is mainly going up due to increasing demand for Serbian pears, after the fruit supply went down due to the boycott.
Problems loom for Latin American top fruit sector
For the top fruit sector in Latin America, several problems are looming. A bigger harvest on the northern hemisphere, and the good expectations for the southern hemisphere, could cause losses to reach 190 million dollars, according to Argentina. The developments on the foreign exchange market may also cause problems, but the economic developments in Russia are perhaps the most worrying. Russia was an important buyer of Brazilian apples, accounting for 20% of the apple export, with 120,000 tonnes. The negative developments in Russia could cause damages of 60 million dollars. Russia was a source to cover production costs in recent years.
Fewer Peruvian grapes to Russia
Where Peru is making headway with the grape export, the volume shipped to Russia from the South American country is decreasing. While the export in general went up by 26% to 258,670 tonnes, the export to Russia went down by 30% compared to last season. The prices for grapes in Russia have virtually doubled compared to last year.