Poland withdraws half of claims

The EU member states had until yesterday to check the compensation requests under the first plan. The compensation was halted after three weeks, because 'dubious claims' were coming in. Poland was blamed for these dubious claims, now it turns out that the country withdrew half of its claims. Ukraine calculated that the boycott causes 17 million dollars in damages this year, which could go up to 50-60 million next year. The Cypriot government calculated that the boycott is costing the country 13 million euros. The damages mainly fall on the island's citrus growers. In Slovakia, consumption of Slovakian apples has increased, though a large decrease in price was necessary to achieve this. In Russia, concerns remain on price increases over the coming winter months. And the Belaya Dacha company saw a European investment in a chip factory evaporate due to the boycott. The company is hoping to find a new investor fast. In Moscow, a 'wholesale market' was shut down, because there was no refrigeration system present, and several rules regarding waste and health were being violated.

Supermarkets in Slovakia are selling more local apples. In August, 51.4% of the apples at the five largest retailers came from domestic growers, a number that had risen to 60% in September. Although growers are selling at low prices, they are happy with sales. Prices are between 15-28 cents, production costs between 35-55 cents. The Slovakian government calculated that the boycott has cost the entire agricultural sector in the country 6.2 million euros so far. On the other hand, the volume of apples sold has increased significantly, although this is caused by the sales price being halved. While in September 2013, Lidl sold 272 tonnes of apples, the amount for September of this year is now 611 tonnes. In neighbouring Czech Republic, the situation is different. There, growers think that apples are being displaced by Polish apples, which are dumped at low prices.

Poland withdraws half of claims
Under the EU's first compensation plan, with a budget of 125 million euros, a total of 175 million euros worth of claims was submitted. After three weeks, the plan was halted due to dubious claims. The member states had until yesterday to check the claims. Now, as it turns out, Poland is withdrawing over half of its claims.

Blueberries for Poland
Polish company Polskie Jagody wanted to enter the Russian market with blueberries this year, but the boycott put a spanner in the works. For this reason, the company shifted its focus to the domestic market and surrounding countries. For the first time, the company brought various varieties and sizes of blueberries to the Polish market. The results are positive: 33% of revenue was achieved in Poland.

Boycott costs Ukraine 17 million dollars
After Russia closed its borders to Ukrainian products yesterday, the government in Kiev calculated that the boycott is costing the economy 17 million dollars this year. For next year, experts are expecting a loss of between 50 and 60 million dollars. Russia already banned other products, including meat, alcohol and candy.

COAG wants expansion compensation plan
Spanish organization COAG has asked the government to also compensate losses on eggplants and courgettes. The Russian boycott is causing prices to plummet for these products, which don't come under the compensation, according to COAG. Eggplants are said to yield less than 15 cents per kilo, and courgette prices are reported to be halved. According to COAG, the Spanish government needs to do more lobbying in Brussels, in order to get these products on the compensation list as well.

Persistent concerns regarding more expensive vegetables
Russian company Growth Technology is also expecting sharp price increases during the winter months, due to a lack of storage capacity. The company is pointing to the prices of tomatoes, cucumbers and eggplants, which already increased in by 15% compared to the same period last year. Apples also became more expensive. Last year, 50 roubles (1 euro) would get you a kilo of apples, while this year you can only find summer varieties for the same amount of money. Serbian apples cost 70 roubles (1.40 euros) per kilo. For next month, the company is expecting prices for tomatoes, cucumbers and apples to increase by a further 10-15%.

Belaya Dacha looking for new investor chip factory
In February, Belaya Dacha announced that the European Bank for Reconstruction and Development (EBRD) was planning to invest in a chip factory. Due to the boycott, the EBRD postponed the investment, after which the project was halted. According to Viktor Semenov, owner of Belaya Dacha, a new investor will have been found within a month. Belaya Dacha wanted to open a chip factory in the Lipetsk region, in collaboration with McDonald's. Other investors were the EBRD and Dutch Farm Frites, with 35% and 30% of the investment respectively. All in all, over 100 million was to be invested in the project.

Viktor Semenov also announced being in talks with the regional government of Abkhazia, on setting up a cultivation company in the region. The company is to replace imported products. Belaya Dacha comprises various business units, including cultivation and factories. Fast food chains such as McDonald's, KFC and Burger King are large clients of the company.

Investments in machinery needed
A cannery in the Novgorod region needs an investment of 12 million roubles (235,000 euros) in order to replace its outdated machinery. The factory has been running since 1968, and is producing preserves as well as jam. The manager expects to be able to double production, looking at the high demand. According to the company, its biggest challenge here is not in raw materials, but the outdated machinery. The regional government is expected to grant a subsidy.

'Wholesale market' Moscow shut down
The authorities have shut down a 'wholesale market' in Moscow for 90 days. The centre comprises 47 hectares where companies were able to sell fruit and vegetables. According to the inspectors, metal hangars were used, but a cooling system was missing. In addition, rules regarding waste and public health were being violated. The centre is located in a protected zone surrounding an asphalt plant. The centre's owner, LLC Stroygarant, was given a fine of 250,000 roubles (4900 euros).

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