Attractive market
Entrepreneurs are determined to exploit the trade advantages generated in Russia. Thus, Peruvian exports of fruits and vegetables to that country will increase by 50% this year.
Ana Maria Deustua, executive director of the Association of Agricultural Producers Guild of Peru (Agap), said that this increase would mean the Peru would sell more than $80 million dollars to Russia.
"Our country is able to meet the significant increase in demand for these products due to the investments made in recent years," she said.
It's worth noting that Russia decided to suspend its food imports from the United States and the European Union in retaliation for the sanctions imposed on them for their role in the Ukrainian crisis, which opens a window of opportunity for Latin American countries such as Peru.
"This is an important opportunity in light of our strategy to search for new markets. The goal is to establish long-term business partnerships to ensure a steady flow of products," she said.
Vision
Deustua said that fruit and vegetable exports to Russia until 2006 had been minimal.
"However, thanks to the vision of Peruvian entrepreneurs, sales to that market began to grow steadily and by 2013 they amounted to $53 million dollars."
Table grape sales to that country amounted to $43 million dollars, followed by sales of passion fruit, which amounted to five million dollars, she added.
Deustua said that, after having evaluated Russia's potential, the entrepreneurs grouped in Agap had decided to participate in one of the most important food fairs held in Russia every year in September, which is very similar to Expoalimentaria, much before the Russian government's ban on imports.
"This is the second time we participate in this fair. Last year we participated as Agap with the support of the Commission for the Promotion of Peruvian Exports and Tourism (Promperú)," she said.
Other factors
However, the executive said, if entrepreneurs wish to bet on the Russian market they need to evaluate other factors beside its demand; factors such as the availability of freight, adequate prices, terms of payment, etc., that will help define the real potential of the Russian market.
"This year, we will also have the support of Promperú, but this time we will be accompanied by grape and citrus producers," she said.
Deustua said the visit was a perfect occasion to explore other opportunities available in the Russian market, such as for exports Hass avocado.
Sales of Peruvian avocado to Russia barely amount to half a million dollars per year, she said.
No sanitary barriers
The executive director said there were no health barriers that could slow the entry of Peruvian products.
"The important thing is to have the logistics services to ensure the quality of Peruvian products."
Deustua emphasized that the new sales office in Moscow would be vital for future bilateral trade development. "It will be our eyes and ears in that market."
She also stated that the foreign trade office in that country is a strategic partner for entrepreneurs seeking information to develop their business strategies and for the translation of important documents.
Peru's total exports to Russia amounted to $151 million dollars last year, 71% more than in 2012.
An attractive country
While this is an untapped market, Russia is an attractive country not only because of its size (142 million people), but also because of its purchasing power as its per capita GDP is of $14,645.
Deustua considered that language could be a barrier for commercial development. In this case, she said, it is best to opt for the local translation services.
Source: elperuano.pe