Russian growers concerned about storage facilities

Supposing you're the president of Russia, how would you start your Sunday off? Russian site RT watched as Putin started his day with a workout programme. The Russian growers aren't so relaxed. While the government is going for higher yields, growers are concerned about outdated storage facilities. Large parts of the harvest are needlessly lost due to outdated storage. Retailers are also worried about the increasing price trend. In the first seven months of this year, products got 10.6% more expensive, with major outliers for fruit and vegetables. Further increases aren't ruled out. The Balkans are profiting from the Russian market, which suddenly became available to them. Egypt also continues to seek rapprochement to Russia. Finally, reports say the phytosanitary service will shortly publish a manual on the destruction of food.

Thanks to Russian news site RT, the world gets to watch the Russian president perform his morning ritual. Together with Prime Minister Medvedev, according to reports, he began yesterday with a workout programme.

In the first seven months of this year, the Russian economy shrank by 3.6% compared to the same period last year. In June, the economic decline reached a low of 4.6%. In July, however, the economy increased by 0.1% compared to June. For the entire year, Russia reckons with a 3.3% decline.

During a visit from the Egyptian president to Moscow last week, among the things he discussed with Putin was an investment fund, in which the United Arab Emirates also take part. The capital is to be invested in a number of projects in Egypt. In addition to agricultural projects, the focus is also on development of an industrial zone and a nuclear plant.

Trade between Russia and Egypt was 86% higher last year, with 5.4 billion dollars. Egypt exported 22.3% more: 540 million dollars. The main export products are potatoes, frozen vegetables, oranges and electronic equipment.

While breeding companies in Russia have been investing in their own development of new varieties since the boycott, and the government is looking to increase agricultural yield, growers have their own concerns, Fruitnews reports. A large part of the harvest is lost, rotting in outdated storage facilities built during the Soviet era. Estimates say the damage could run as high as 20-40% loss. According to official government figures, however, loss amounts to 3%.

While the economy shrank, food prices were up in the first seven months of this year. On average, the price in Russia increased by 10.6%, according to official statistics. The price hikes are seen across the entire economic spectrum. Fruit prices increased the fastest: up to 25.4%. Vegetable prices increased by 5.9%.

In view of the weak position of the rouble, which lost value again last month, it's possible that retailers are forced to further increase prices. Exporters from Turkey and South America are asking for more money. Particularly for fruit and vegetables, prices have gone up since the rouble weakened. The increasing prices don't have the same hoarding effect as in December last year yet, when Russians bought value-stable products en masse. In addition, more supermarkets are managing their own production.

Fruit growers in the Balkans, particularly in Bosnia and Herzegovina, profit from the Russian boycott. News channel Al Jazeera visited the region of Gradiška, where growers joined hands to storm the Russian market. The sanctions play into the hands of these growers: "The sanctions have definitely helped us. We managed to utilize this opportunity, immediately storming the Russian market," one grower says. According to official figures, the total export in the first six months of last year amounted to 27,000 euros. During the same period this year, the export of apples and pears alone amounted to 5 million euros.

The Russian inspection decided to make a manual for the destruction of food. After a few weeks in which food was destroyed, the inspection now wants to establish rules on how to approach this.

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