The Worldfood Moscow took place this week. After the introduction of the Russian boycott, Dutch exporters no longer saw the need to visit this market. Belgians, on the other hand, are still at the Russian fair with seven exporters under the VLAM banner. Do they still see profit here? We asked Tony Derwael of Bel'Export, who isn't afraid to say what he thinks. "We're here to maintain contact, but honestly, I think that, in time, we have to let go of Russia," he concludes. "Even if the boycott is lifted this market will never be like it was."
Not improved
A huge volume of top fruit went from Belgium and the Netherlands to Russia. Last year many pears were still exported to Russia through other (neighbouring) countries. "We were here last year too and the atmosphere was bad. Pears were sometimes given away for almost nothing. There were hopes that the boycott would only last a year and this is why exporters signed up to this fair. Unfortunately the boycott is still in force and the political situation hasn't improved. I don't think it will be resolved any time soon."
Feeling the boycott now
Tony was in Russia regularly last year and saw Conference on the shelves there. "It will be different this year. Conference is still an important product, but many retailers are afraid to carry European product. There is a lot of political pressure and it is becoming too risky. They are running the risk of losing their license. It could change, but as long as the boycott is in force I don't think they will sell Conference." Tony indicates that they are really starting to feel the boycott now. "The mood in the top fruit market is still quite positive, but maybe too positive. Russia will be even stricter this year. We were at the wholesale market too and there is still European product there."
Conference
Russia isn't self-sufficient by far. "We are working hard on that. A huge amount of subsidies are being given to fruit and vegetable growers to get their own production up. Investments in huge greenhouse complexes are common. But they won't be able to grow all products themselves. A Conference is only available from us. As far as pears are concerned, Russia will not become self sufficient. One in three pears sold here was Conference. They won't be able to get the volumes of Conference we brought to Russia anywhere else."
It was a market with volume
Yet he believes they should distances themselves from Russia. "It will never be like it was. Russian importers have to find alternatives and they will. In time Russia will connect more to Asia, I think. Politically I think we dance to America's tune too much and it's costing us a lot of money. It doesn't matter much for America. They maybe exported a few volumes of nuts to Russia. Half of Belgium's pears went there. We are the biggest victims of the Russian boycott, along with Poland. You can be for or against Russia, but the fact is that it's a big market. Of course there are dangers as well, payments aren't that closely watched. But it's a market with volume."
The Netherlands and Belgium become largest pear producer
In 1998 Bel'Export exported to Russia for the first time. "Back then we had a production of 150 million kilos of pears in Belgium. Today it's more than double. Russia has absorbed this increased production throughout the years and now all that trade is dropping out. I estimate that the production will reach 500 million kilos within ten to fifteen years. The Netherlands is in the same situation. These two countries will be worth a million tonnes of pears in a few years. Then we'll be bigger than Italy with 800,000 tonnes. The Netherlands and Belgium together will be Europe's biggest pear producers."
New markets
Belgium is busy with new markets. "An example is Canada, as well as China. The volumes that go here are 'peanuts'. There is talk of an export of 10 million kilos to China and that's quite a bit. But all in all these little bits aren't enough to catch a production of 370 million kilo. New markets take time and it will be years before a large volume goes there."
China isn't waiting for Conference
According to Tony China is more of an export country when it comes to fruit. "They let small amounts, by their standards, in. This is to have something exclusive, mainly in Hong Kong. That isn't China, Great Britain still has a lot of influence there. The British know the Conference and want to buy it. The Chinese aren't waiting for Conference. They want a smooth green pear, and we won't have that for a few years. We'll have a chance in China with that." He certainly sees potential in new markets in the future, but it costs money to invest. "Tastings are expensive, but they work, you can see it in Germany. Last year's promotion with the Netherlands had a huge effect and hopefully the volume to Germany will continue to rise."
WorldFood Moscow takes place on 14 to 17 September in Moscow. VLAM and 7 exporters are present from Belgium: Bel'Export, Calsa, D&G Fruit Business, Devos Group, DSF, Wouters Fruithandel and Vergro.
For more information:
Tony Derwael
Bel'Export
Neremstraat 2
3840 Borgloon - Belgium
Tel +32 12 440 551
www.belexport.com
belexport@belexport.com