REO more focused on Russia this winter

REO was ready to increase their exports to Russia this winter. According to Dominiek Keersbilck, commercial director of REO, these efforts have now come to a standstill. "Last winter we sent more towards the Russian market. Due to the mild weather the prices of leek were low and this made the product interesting for this market. Together with the Flemish export sector we put more effort into sending more volumes of leek in that direction. That effort is now offset."

Weather sensitive
In the last few weeks the fall and winter leek has appeared at REO. "The production of leek has appeared earlier this season than what was planned, but due to the abundant rain and the colder weather in many production areas in Europe in the last few weeks we can see some balance coming back into the market. It is still early to talk about the volumes and the price of the leek for the coming fall and winter. But it is good to remember that leeks are very weather sensitive when pricing is concerned.

Negative effect
Paul Demyttenaere, general director, adds: "The Russian market is also important for REO. This is where the surplus of vegetables in the European market would go. This means that it does not just take care of the export of a few products (tomatoes, pears, paprika, apples and cabbages), but it also supports the price formation of most of the fresh vegetables through allowing substitution. Chicory and leek will suffer from the Russian embargo as soon as all the Southern European fruits begin going to the traditional markets. It therefore remains to be seen how the Russian boycott of fresh fruits and vegetables will evolve. Europe is taking measures through removing product from the market. The question is if this is sufficient to get correct pricing on all fresh fruits and vegetables within Europe. The question arises as to how successful a vegetable 'set-aside' would be in bringing meaningful balance back to the market. After all, our producers have a right to a fair and correct price, and now they are faced with a negative margin," says Demyrrenaere.

For more information:
REO Veiling
Dominiek Keersebilck
Oostnieuwkerksesteenweg 101
B-8800 Roeselare
Tel: +32-51231206
Fax: +32-51231289
www.reo.be