- Executive Director, Stakeholder Relations & Industry Growth - Canada
- Marketing Manager - Chicago IL
- Sales and Trading
- Grower and Project Planner Vertical Farming - Aarhus - Denmark
- Offre d’emploi de Responsable Commercial Senior Sales Manager
- Territory Manager - Brazil/South America, Argentina, Ecuador, Columbia
- Sales manager
- Head of Sales
- Sales Manager - Germany
- Key Account / Sales manager Fruit - DACH
Top 5 -yesterday
Top 5 -last week
Top 5 -last month
Market situation unlikely to change in January and February
Russian retail decrease quality standards
The point, according to Irina, is that it takes time to build relationships between suppliers in other countries and importers in Russia. “It’s a long process that cannot be completed in just a couple of months. There is also the question of availability, or supply and demand,” she says.
For example, the volume of apples exported by alternative suppliers, like Switzerland, which used to be insignificant, has increased considerably, “but this is still very limited volumes at pretty high prices. Collaterally, some traditional suppliers, like Morocco, Egypt or Israel, have also been able to increase their market shares in Russia,” explains Irina.
These suppliers are precisely the ones which may potentially be most affected by the devaluation of the Rouble, although “the reaction for now is a quiet market, as companies are studying the situation and trying to understand what’s going to happen,” says Irina.
Meanwhile, for Russian retailers, the lower import volumes also entail a higher percentage of problems, “and often, buyers from the retail chains have told us they had to decrease their quality standards.”
Consumers, in any case, while unhappy about the growing prices for almost all food items, are surviving, conscious that the issues are also caused by the difference in exchange rates. “In most cases, they perceive the market problems mostly as a consequence of the drop of the Rouble,” assures Irina.
Regarding the suspicions that banned EU products could still be entering the Russian market, Irina states that it is still unclear whether there is such a scenario. “I’m sure some products are being repackaged, but the Rosselkhoznadzor has been working hard to stop this illegal trade, and I don’t believe these sales reach massive volumes.”
The bottom line is that consumers will continue purchasing fruit and vegetables, even at the higher prices and from different suppliers, with hopes that the limits on imports will be over soon and that governments will come to some agreement.
In this sense, “we are looking at March as the earliest timeframe for an improvement in the relationships between Europe and the U.S. and Russia; by then, hopefully a portion of the sanctions will be lifted, but what is sure is that the market situation in January and February will certainly not be good,” concludes Irina.
Receive the daily newsletter in your email for free | Click here
Other news in this sector:
- 2018-02-19 Russia behind cyber attack on Maersk and APM Terminals
- 2017-12-19 Unanimous EU extends Russia sanctions
- 2017-11-17 "Fourth harvest that's not gone to Russia, that is a structural problem"
- 2017-10-17 In five years, Russia will be self-sufficient in tomatoes
- 2017-10-13 Belgian pears on the rise in Estonia and Lithuania
- 2017-09-25 Russia warns Serbia of phytosanitary exceedances
- 2017-09-25 You won't lack for anything at the Russian market
- 2017-09-18 Is Russia opening border for Turkish tomatoes?
- 2017-09-13 Russia inspects Turkish tomato growers
- 2017-09-12 Photo report: What's on the supermarket shelves in Moscow
- 2017-09-04 Russia opens borders to Turkish vegetables, but not tomatoes
- 2017-08-30 Russians send 145 tonnes back to Kazakhstan
- 2017-08-29 Mediterranean stone fruit on Russian shelves
- 2017-08-22 Tomatoes in game of yes-no between Russia and Turkey
- 2017-07-19 Sanctions against Russia barely effective
- 2017-07-05 Russian minister of agriculture isn't hoping for an end to the boycott
- 2017-06-23 EU extends sanction against Russia
- 2017-05-29 Russia won’t change its mind about Turkish tomatoes
- 2017-05-22 Turkish tomatoes to Russia in winter?
- 2017-05-08 Turkey and Russia lift (nearly) all sanctions