April 10 2007, 09:01

Russia allows "green wave" for fruit import from Moldova

According to information provided by "Novy Izvestiya" newspaper, the Russian Agricultural Inspection decided past week to extend the terms of fruit and vegetable import from Moldova. This was the second step forward to restoring the produce supplies. First the produce of the past year harvest was allowed to be imported from Moldova after two-year banned supplies. However, then Russian specialists had been controlling the plant production conditions for two months; they approved the full-scale import only this Friday. To the specialists' opinion, the competition on market will grow and will probably lead to a certain price decrease.

We remind that in spring 2005 Russian Agricultural Inspection suspended the supplies of Moldavian produce to Russia claiming that the Phytosanitary Service of Moldova did not follow the international standards of the food safety. The impact was the price increase. Moldova grows on average 350 thousands of vegetables and 500 thousands of fruits annually. Around 80% of Moldavian apples, 93% of pears, 71% of apricots and 61% of peaches were directed to Russia. The nature abhors a vacuum, of course, but all this vitaminous products became noticeably more expensive. Not only the consumers suffered, but Moldavian producers too together with the economy of the Republic. According to some experts' evaluations, Moldova lost $ 11-12 mln. as a result of the produce supplies banned by Russia.

On the 6th of March the parties principally agreed to restore produce supplies, but there were many stipulations. Russian Agricultural Inspection set rigid requirements. Moldova was allowed to import only the remaining stocks of the past year harvest. The first 200 tons of apples and grape have been already supplied to Russia. In addition, all imported produce should pass the single custom office in Brichany, the north of Moldova. According to the terms of the agreement, Russian specialists went to Moldova to observe the vegetation conditions of the new harvest during one month and to control the work of the local Phytosanitary services. Chishinau treated these terms quite evenly; the country fulfilled all the set requirements hoping to restore the previous trade relations.

Past Friday the experts finished their work - they extended the import permission for Moldavian produce of the previous and this year harvest. "Now the supplies will be implemented under responsibility of the National Service of Plant Quarantine of Moldova and Moldavian specialists", said Mr. Mikhail Maslov, the Chief of the Phytosanitary Inspection Department, Russian Agricultural Inspection.

But, it is too early to say that the supplies are permanent and even. Mr. Aleksey Alekseyenko, the Deputy Chief of the International Cooperation, Protocol and Press Service Department, informed the newspaper journalists that Russian authorities will continue monitoring the produce despite of the positive decision regarding the import of Moldavian fruits and vegetables. "Russian Agricultural Inspection will demand a special investigation in case of any violations", he emphasized. We'd like to mention that such situation was in place some days ago with meat supplies - Russians were likely to allow meat supplies but found the violations pretty soon.

Mr. Alekseyenko forecasts the further development of the produce cooperation between Russia and Moldova with a certain caution. He says, it is too early to talk about the restored trade in the pervious volumes between two countries. "When Moldavian produce quitted coming to our country, the other producers filled the niche. Time should pass to restore the previous links among the suppliers and the buyers", he mentioned. Also, the specialist of Russian Agricultural Inspection admits the possibility of a certain price decrease for fruits and vegetables that can be applied to imported produce in general. The fact is, the suppliers from the other countries will have to compete with Moldavians who traditionally import the cheaper products.

To the opinion of Andriy Yarmak, the Analyst of ""Agrooglyad: Vegetables and Fruits" journal", the permitted supplies of fresh produce from Moldova is likely to help increase fruit and early vegetable supply in the low price segment. This segment has been characterized by a certain deficit after the produce import from Moldova, Poland and Georgia was banned. To the expert's opinion, it is too early to say that the given circumstance will seriously influence the Russian produce market, because pretty much time should pass to even partially restore the fruit and vegetable export.