September 20 2011, 11:52 Fruit-Inform

The annual value of Russia's fresh produce imports exceeding $5 bil.

According to Tetiana Getman, Head of Fruit-Inform Project, the annual value of Russia's imports of fresh fruits, vegetables and potatoes exceeds $5 bil. In such a way, the Russian Federation gives more than $5 bil. in subsidies to foreign farmers who grow the products that can be well produced under the Russian climate conditions, the expert added in her speech at the Fourth International Conference “Fruit & Vegetable Business of Russia – 2011”.

“Notwithstanding the advantage of the available huge target market, Russian producers have to develop their production under rather uncomfortable conditions: loans are as before hard-to-obtain, production costs grow from year to year, and competition from the side of imported products gains strength”, T. Getman said.

However, she also mentioned that, according to Fruit-Inform Project's estimates, the Russian Federation will import the smallest volume of fresh produce in this season thanks to internal overproduction of potatoes and major vegetables.

“We expect Russia to have the record-breaking production of potatoes, white cabbages and onions this year. If taking into account the prices for major vegetables being already record low and the storage construction boom in Russia and neighboring countries, then it is evident that the Russian market players will mostly think of how to incur no losses in the current season and will mainly forget of gaining profits from vegetable storage”, the expert added.

We would remind you that Fruit-Inform Project's preliminary conclusions of the current season's results and information about the fresh produce market situation in Russia and Ukraine in the season 2012/13 will be presented exclusively for participants of the Eighth International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter” which will take place in conjunction with Fresh Produce Ukraine 2011 Fair, from November 30 to December 2, 2011.