October 4 2007, 19:13

Russian producers of canned vegetables to force India and Vietnam out of own market

The situation on Russian market of canned vegetables will be developed due to the products of local producers which are to replace canned products of Indian, Vietnamese and other origin. Only the competition with Ukraine will stay strong, Victor Golinka, the Director of LLC "Zapadny Most" thinks. His enterprises import canned products to Russia.

Announcing its report on the second international conference "Fruit&Vegetable Business of Russia. Wealth of New Opportunities", V. Golinka explained this trend by the growing demand for Indian and Vietnamese products from the side of EU and USA which prices are considerably higher than in Russia; the consolidation of Indian currency; and the increased transportation expenses, as well as other factors. Also, the import from India and Vietnam on Russian market is quite risky because of a long shipping period.

In 4-7 years perspective, to the opinion of V. Golinka, Russia may possibly transform from a large importer of canned corn and green pea into a net-exporter.

Imported products dominate now on Russian market of canned vegetables. The geography of supplies is wide enough; however, the major suppliers of canned cucumbers are India, Vietnam and Ukraine; green pea is supplied from Hungary, Serbia, Ukraine; canned corn is shipped from Hungary and Thailand.

There are all signs of revival of Russian producers of canned vegetables. National capitals are invested to the processing enterprises; foreign investments are increasing as well. In particular, Bonduelle plant has been successfully working for several years; the opening of the plant of French CECAB Group will soon be conducted; EUR 50 mln. were invested to this project.