First direct imports from Africa and China to Russia

Russia remains committed to producing its own crops. A seed company will try to make the Omsk region independent of Dutch imports. Furthermore, Russia continues to look for new suppliers in Africa and Asia. At the border, a shipment from the Netherlands was rejected because it was unclear to the customs authorities whether the asparagus and mango actually came from Thailand. Meanwhile, prices in Russia are increasing and the Communist Party suggested setting maximum prices.

Situation escalates in Ukraine 

The situation in Ukraine has further escalated. The Russians, or Russian-backed separatists, have launched an offensive and the Ukrainian army loses ground again. The EU and the United States want to impose more sanctions on Russia. Last weekend, EU leaders agreed on an extra package of sanctions to come if Russia does not back out. In the U.S., several senators have gone one step further; they want to supply the Ukrainian army with weapons. And while the separatists further advance, Putin called to engage in dialogue and to discuss the situation. 

Putin may be the one with the best cards, despite the weak economic situation. The EU wants sanctions, but is also hopelessly divided over these trade restrictions and European leaders don't want to jeopardise the stability of their own fragile economies. This results in relatively weak sanctions. Americans do not want a military conflict, and seem to prefer to look the other way; it is a European affair.

Since the import ban, prices of fruits and vegetables, especially in Kaliningrad, have gone sharply up; apple prices increased by 40 cents to 1.20 Euro per kilo. To improve the situation on the market, the "Consumer Union" has been instructed to buy more fruits and vegetables from local growers. Potatoes, carrots, beets, courgettes, peppers, cucumbers, tomatoes and apples from local growers are allegedly already available. According to local reports, the apple and pear harvest has been good.

Importers from St. Petersburg have recently successfully found new fruit suppliers. The market, worth 0.5 billion Euro, is now open to countries that are not affected by the boycott, such as African countries and China. 

Last week, the first shipments of fruit from Africa arrived to St. Petersburg. Apples from China are already available in stores. 

A major trading partner is Ecuador, which is the largest banana exporter. Last year, Russia imported $ 927.4 million worth of products. The top 10 fruit and vegetable suppliers, which includes countries like Spain, Poland and Belgium, with a total value of $ 254.2 million in 2013. The total imports from the EU and U.S. was twice as much. Europe provided approximately 80% of the seasonal fruit.

Fixed prices against price hikes 

The Communist Party has submitted a proposal for the establishment of fixed prices for food products; with this measure, the government should put an end to rising food prices. The government has already made some appointments, and the Communists want to go one step further.

Tomato prices may have risen by 30% in a week, as estimated by APK-Inform. The current price on the Russian market stands between 30-40 Rouble per kilo (60 to 80 eurocent), depending on the quality and variety. A week earlier, it did not exceed 30 Rouble per kilo (60 eurocent per kilo) 

The price change is due to lower supply. As a result of cloudy weather and cold nights, the harvest has slowed down; however, demand for tomatoes remains high. Moreover, prices last year also increased during this period due to the high demand and declining supply.

In the Omsk region, near the border with Kazakhstan, a new breeding centre will be built in three years where seed potatoes, among other things, will be bred. The centre must be able to deliver 18,000 tonnes in order to make the import of Dutch seed potatoes unnecessary. The centre is to make use of the micro-clone technology for potatoes and Jerusalem artichoke. The company is still looking for suitable land, but has already chosen the varieties. The equipment has already been purchased, two storage facilities have been built and the irrigation system for 200 hectares has been renovated. In the future, the company plans to expand the acreage with virus-free seeds, among other products. 

According to the regional government, Omsk is self-sufficient in potatoes. The local harvest is estimated at 818,000 tonnes and the local consumption stands at 645,000 tonnes; the 200 to 300,000 tonne difference can be shipped to surrounding regions. 

According to Putin, Russia and South Africa are developing a good relationship. South Africa is Russia's main trading partner in Africa. Last year, the market grew by 11%, and over the first six months of this year trade has already grown by 10%. Russia, South Africa and Mozambique have plans to set up a partnership for the export of vegetables to Russia.

Belarusian customs authorities have tightened controls on the re-export of fruits and vegetables from Lithuania. The documents are scrutinised before shipments are allowed to pass. It is important for exporters to include the necessary phytosanitary certificates, which applies to exports from EU and non-EU countries. 

Uzbekistan wants to double production 

Uzbekistan wants to invest in the agricultural sector. To this end, the government wants to work with international organisations, foreign investors, scientists and researchers to increase its fruit and vegetable production.

Uzbekistan cultivates around 180 fruits and vegetables. The country is a major exporter of apricots, plums, grapes, hazelnuts and cabbage. The current total production volume stands at around 16 million tonnes, which should double by 2020. Additionally, $ 150 million will be invested in storage facilities and logistics centres.