August 28 2006, 10:25

The prices will decline for potato and vegetables; fruit price will grow in Russia

In the height of the season of fruit and vegetable harvesting Russian producers inform about good harvest of vegetables and potato. But, significantly less fruits and berries were harvested.

To the opinion of the experts of the Ministry of Agriculture of Russian Federation, the price for potato can significantly decrease as soon as in September. Potato harvest expectations are very good in the country; large shipments of new potato will enter markets in September. Right now the wholesale prices for major vegetable crops such as onion, cabbage, carrot, cucumber and tomatoes are lower than a year ago. This fact can be explained by greater production of these crops comparing to 2005. Still, the retail price has not declined so rapidly as the wholesale price. The expenses to transport products from production regions to main consumer centers continue increasing.

To the opinion of the experts of the Agricultural Marketing Project, Russia can increase fruit import more than one third in a new season as a consequence of significant production decrease after January frosts. At the present moment the prices for berries and fruits are higher 1.5-2 times than at the same period of time past year. To the opinion of Andrey Yarmak, the Deputy Director of the Agricultural Marketing Project, fruit deficit on the inner market will be covered by means of fruit supplies from Turkey, Spain, Greece and other EU countries.

However, one fact causes concern: the import of fresh fruits and vegetables from Moldova, Poland and Georgia, close to Russia countries, has still been banned. Fruit harvest has decreased in many EU countries this season as well; the prices are growing respectively. And, the transportation expenses for fruit commodities have significantly grown as well because of price growth for fuels. These two facts are able to make fruits a too expensive product for many consumers in Russia, especially for people with low income.

You can get the detailed information concerning the perspectives of vegetable, fruit and berry markets in a new season, as well as about the strategic perspective, from the leading experts during the first international conference "Produce Business in Russia 2006" to be held in the Expocenter, Krasnaya Presnya, Moscow, October 17-18 2006. The event will be conducted simultaneously with the first international specialized exhibition "IFE Fresh Produce" where technologies and equipment for vegetables, fruits, berries, mushrooms, nuts production will be demonstrated.