August 25 2008, 10:36

Russia: domestic producers not to use huge potential of the market of apples

According to the report of the Department of Agriculture of the United States (USDA), dd March, 2008, Russia is called as a “promising market”: the country takes 23% of the world import of apples and 24% of pear imports. Only the EU-countries all together purchase more (24% of apples and 27% of pears). At that, the prices for imported and domestic produce are practically equal.

In China, that is currently a monopolist in production of fruits, the areas under apple gardens total 2.5 mln ha, and in Russia – nearly 2 mln ha. This means that Russia has a great potential for development, but some problems prevent to use it.

First of all, climate. According to Gennady Yeremin, the academician of the Russian Academy of Agricultural Sciences, the Director of the Crimean plant selection station of the Institute for Development located in Kuban, for today only Krasnodar Krai is favorable zone for apple cultivation in Russia.

In the second place, the old extensive gardens still prevail in Russia that give comparatively low yield.

The third problem is lack of the state support. The funds, allocated according to the state program of agro-industrial complex development, are often not sufficient even for the most necessary measures.

And one more problem is low customs duties. According to the report of USDA, despite the Russian attempts to defend fruits market from competition, low customs duties and putting into operation of new terminals in St.-Petersburg port will make the imported products even more competitive. At that, according to the specialists’ opinion, there are many problems in marketing policy of the Russian farms. The experts agree that in order to sell the products with profit, the producers need to create agro-holdings and fix the level of retail prices by themselves. However, at the moment in Russia there are only several enterprises seriously engaged in fruit business. “Sad-Gigant”, “Imeni 15 October” and JSC “Sady Pridonya” are among the largest from them. Their success is mostly predetermined by right structure and organization of gardens by intensive type.

Presentations of the leading experts in this field will be denoted to the problems of apple market in Russia during the Third International Conference “Fruit & Vegetable Business of Russia – 2008” and the Fifth International Conference “Vegetables and Fruits of Ukraine 2008”. During 3 days the participants of the event will become acquainted with newest achievements of the domestic and foreign companies, specialized in production of apples and other fruits and vegetables. At that, the specialists of “Fruit-Inform” project will prepare forecast of production and prices for fruit and vegetable produce in the next season taking into account the most actual tendencies on the domestic market of Russia and abroad. Detailed information about the conferences is presented here. The companies, prepaying their participation till the beginning of September, will have discounts!