July 23 2008, 09:53

Prices for Russian vegetables and fruits to rise faster than in Europe

Vegetables take the leading place in rise in prices for food: during the first half of the year they went up by 53.3% in Russia and in Europe – only 2.9%. The prices for fruits increased by 13.2% (8.4% in EU) (Russian data – Rosstat, European – Eurostat).

Producers still blame rise in world prices for exchange food products, rising costs of fertilizers and energy resources, Vedomosti informed.

“We are forced to increase prices in order not work at a loss”, said Vladimir Landyshev, the Production Director of Belaya dacha company (covers 5% of the vegetable market in Moscow). Since January, the company has increased costs for gas by 25%, electricity- 40%, mineral fertilizers-more than twice, V. Landyshev added (these expenses form vegetables production cost). At that, they had to increase salaries by 20%. Therefore, “20% growth for vegetables is not unexpected”, Landyshev resumed. According to him, increase of the company’s expenses still exists so that vegetables will further go up in prices.

Fruits consumption increases faster in Russia than in Europe, the source of the company “Optifood” (fruits and vegetables importer) informed. Russian fruits for the moment are not able to seriously compete with imported fruits, therefore the prices increase right after the world market. Last season was off in the countries-exporters and demand on the world market surpasses supply.