“I believe that in about a month Egyptian potato exports, while not stopping completely, will slow down enough for us to enter the Russian market aggressively,” said Gil Segev of Arava Export Growers. Segev noted that Israeli growers, who have higher production costs and put out a higher-quality product, ask for prices higher than those asked by competing Egyptian exporters. While potatoes remain a staple in Russia, the economic problems in the country have led consumers to become more price-conscious and cut back on the quantity of produce purchased.
“It's been a slow market for a combination of reasons,” explained Segev. “It's been the lower-priced potatoes from Egypt, it's been the recession in Russia and it's been the weak ruble.” Because of a weak ruble, Israeli exporters receive less value for their product than before. Segev noted that the majority of their exports go to Russia, and because of the current situation, they have sent to Russia this season, half of what they sent there by this time last year. He's hoping the rest of the season turns out better than the first part of it.
“We are growing the same volumes as last year and the Egyptians seem to be growing the same, but the issue right now is the price of potatoes,” said Segev. “I believe in a month, when there are fewer Egyptian potatoes on the market, the market will be better.”
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or more information:Gil Segev
Arava Export Growers
omer@arv.co.il
www.arv.co.il