If in Russia will ban on trade with berries from the EU - expected changes in the structure of russian foreign trade relations PDF Print E-mail
Wednesday, 08 June 2011 21:08

Executive Director of Association of Retail Companies said on June 8, 2011, that retail company in Russia began to receive notices of withdrawal of berries, imported from EU countries. Reportedly, that the ban applies to all berries- fresh and frozen. This information is confirmed by representatives of several retail companies in Russia. As we have previously reported- a similar ban on vegetables from the European Union had earlier started.

It should be noted, that imports of vegetables and fruits in Russia is growing, according to the Federal State Statistics Service, in April 2011 when compared with April 2010: imports of tomatoes in Russia increased by 3%, imports of cucumbers increased by 10%, imports of pepper increased in 1.8 times, imports of onions in Russia increased by 1%, imports of cabbage increased in 2 times more; imports of carrots to Russia increased by 1.5 times, imports of grapes in the Russian Federation increased by 10%, imports of bananas increased by 50%, import of oranges increased by 38%.

A significant portion of fruit to Russia in 2010 was imported from Europe, especially such a popular berries, like strawberries. Therefore, after the ban on imports of berries to Russia, a single country-supplier of strawberries to Russia in 2011 will be a China. And growth of demand in 2011 of Chinese strawberries in Europe and the U.S. have led to the raising of prices for frozen strawberries. So now very likely to further increase the price of strawberries in the very near future. Also expected to increase the price of cherries, blueberries, blackberries.

May be will grow even prices for cranberries, though little of it imported from Europe, but Russian market of frozen berries appeared large amounts of frozen cranberries from Canada and the USA. Therefore, the main producers of juices in Russia will switch to use as a raw material of American or Canadian cranberry, supplies which are more stable, than the domestic supply of cranberries. The only market segment where demand remains at the Russian cranberry -is a major retail chains in Russia, which will continue to offer its customers domestic cranberries. Given the recent ban, tougher competition between collectors and suppliers of cranberries for the right to supply the Russian cranberry in retail chains, which inevitably can lead to higher prices and cranberries. Also in the wholesale market berries in Russia will remain frozen cranberries deficit, which also does not reduce the price of this berry.

But it is expected, that the Russian market of frozen berries will be a cheaper replacement of frozen cherries from Poland. After a ban imports of fruit from Russia, much of the Russian suppliers of frozen berries will begin to market frozen cherries from the U.S.. After that, we should expect a complete change in market structure and key market linkages already in the years ahead, as the majority of industrial enterprises in Russia preferred to use in the manufacture of frozen cherries from Poland. Changes in the structure of market demand will affect of blueberries, again, after a ban on imports from EU countries, industrial enterprises in Russia will go for processing or sale of frozen blueberries from Canada.

Changes in the structure will affect suppliers of blackberries, and now its on a large scale will start to import into Russia from China. Given the fact, that last month in China, there is an abnormally high temperature, which in one part of China has led to drought, while in another part of China has led to flooding, we can say, that Chinese vendors of strawberries and blackberries will not be able to supply the strawberries and blackberries in Russia at the same prices, as in China has increased demand for these berries, so it is very likely to increase prices for strawberries and blackberries.

Thus, after the ban on the import of berries from Europe, the industrial enterprises, as well as wholesale and retail network in Russia will be forced to look for new suppliers of these products in China, USA and Canada that will lead to new partnerships, which is quite may persist after the lifting of the ban on imports of berries from EU countries.

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