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Turkish export Russia +30%

Russia sets up domestic food aid programme

In the first nine months of this year, Turkey exported 30% more fruit and vegetables to Russia. That means Russia has a share of 53% in Turkish export. Moroccan exporters are more cautious. Although the country is looking to increase export to Russia, exporters also fear a repetition of last year’s events, when the Russian market was flooded with fruit from Morocco, Egypt, South Africa and Turkey, causing many exporters to suffer losses. Prices in Russia showed varying trends in September, with lemons, for instance, getting 25% more expensive, while prices for oranges and grapes went down. Russia is also looking to set up a domestic food aid programme, with the government buying products for social organizations. And a shipment of illegal top fruit was intercepted in the city of Tula. The apples were confiscated, the pears sent back.

The EU made a complaint to the World Trade Organization (WTO) about the Russian boycott of Polish fruit and vegetables. Russia says it blocks trade because of diseases, but according to the EU, the measures are disproportional, because only 0.1% of shipments were found to be contaminated. This is about the extra sanctions against Poland, in addition to the boycott in response to the European sanctions.

Ukraine will not impose countersanctions
Ukraine also objected to the tougher Russian rules. Ukraine adjusted its phytosanitary control system in response to the trade agreement with the EU. The Eastern European country is convinced that additional Russian sanctions will follow, as announced last week. Ukraine says it will not take countermeasures. Russian import is inspected according to protocols, without political interference. For the export, Ukraine will look for new markets, including Belarus and Kazakhstan.

Polish apples intercepted
In Tula, a city south of Moscow, a large shipment of apples and pears from Poland was discovered. The apples were being stored in the city. The fruit was intended to be sold in the city. The inspection confiscated 96 boxes of apples, the Conference pears will be sent back.

Huge price differences Moscow
Prices for fruit and vegetables in Moscow show widely differing trends. According to the federal statistics bureau, a number of prices have gone down in September, while other products have become significantly more expensive. Cucumber prices went up by 5.8%, bananas became 6% more expensive, and lemons take the biscuit with a 25% increase. Other products got cheaper. Prices for grapes went down (-19.3%), carrots, potatoes, cabbage, beets and onions got 7.2-13.1% cheaper. Prices for pears, garlic, tomatoes and oranges decreased by 4.2%.

Russia sets up domestic food aid
The government in Moscow has adopted a plan to set up an internal food aid programme. Within the context of this programme, the state will buy agricultural products for social institutions, and invest in the food aid infrastructure. Another purpose of the programme, however, is to support the domestic agriculture industry within the WTO rules.

Turkish export to Russia +30%
In the period from January until September, Turkey exported 916,292 tonnes of vegetables in total. That’s 1% more than the same period last year. 907,238 tonnes were shipped then. Income from export has also gone up by 5%, to more than 434 million euros.

53% of Turkish export went to Russia, which means Russia remains the most important destination. Between January and September 2014, sales of fresh vegetables to Russia increased by 30%, reaching 413,602 tonnes. This increase amounted to 9% of the income, with 229 million euros. After Russia, the most important markets are: Bulgaria with 27 million euros; Germany with over 26 million euros; Ukraine with just over 23 million euros, and Romania with nearly 22 million euros. Tomatoes are the main export product, with 54% of the volume and 65% of the value. The first nine months of last year, 385,887 tonnes of tomatoes were exported, while this year the volume went up by 28% (493,795 tonnes) in the same period. Income from this supply went up by 14%, to over 280 million euros. Bell pepper export amounts to 49 million euros; cucumbers 30 million euros, onions 26 million and courgettes 20 million euros.

New approach Moroccan citrus exporters
The Moroccan export to Russia will get started soon. Authorities have taken measures in order to prevent last season’s mistakes. The authorities fear that Moscow, with the large amount of fruit coming from Egypt, South Africa and Turkey, will become an outlet for Moroccan fresh produce.
Last year, Morocco exported 586,000 tonnes of citrus, and the country increased its export to Russia from 120,000 to 200,000 tonnes of fruit. The Russian market proved unable to take up all the Moroccan fruit. Plummeting prices made the situation worse, causing growers, who worked with consignment sale, to suffer serious losses.

Moroccan authorities have implemented reforms this year. The most important of these is the establishment of a coordinating committee for citrus, bringing together specialists within the entire chain. The committee will closely follow the markets, and occupy itself with logistic aspects and export.

Supermarket Okay opens new branch in Ural
Russian retailer Okay has opened a new branch in Orenburg. The store has an area of 11,630 m2, and a sales area of 7600 m2. There’s room for 35,000 products. Okay comprises 56 hypermarkets and 35 supermarkets.