Russia, Ecuador and Venezuela were all hit hard by the lower oil price. The countries met last week in Moscow. The relationship between the countries has improved lately. Iran still has plans to increase its market share in Russia, with particularly big expectations for apples. Prices in Russia have gone up further since the start of the year, partly due to onion growers limiting supplies. That ended last week, due to the quality of the onions deteriorating. In Ukraine, demand for beetroot increased, which caused the price to go up. And the Polish government has plans to take yet more produce off the market.
No exotics and organic produce in Russia
The premium segment has been hit hardest since the boycott. Apart from the negative consequences of the devaluation of the rouble, the trade in exotics and organic products has nearly come to a halt. Ksenia Gorovaya, director of Crisp Consulting LLC, said at Fruit Logistica that supplies of organic products have been lost. For these products, Russia was completely dependent on the import from the US and Europe. Apart from the upper segment, "there are no shortages on store shelves yet. Supply is much more limited than before though."
Price increases since beginning 2015
According to figures from the Russian Ministry of Agriculture, the price of cabbage has gone up by 49.5% between January 1 and February 16, to 21 roubles (29 cents) per kilo, making cabbage the product with the fastest increasing price. Onions got 29.1% more expensive. The price for onions is virtually equal to the cabbage price. Potatoes yield 19.7 roubles (27 cents) per kilo, an 18.8% increase. The carrot prices went up by 18.3% to 25 cents per kilo.
Russian onions on sale
Two weeks ago, onion growers in Russia still held on to a lot of stock, expecting prices to go up further. Last week, the onion growers introduced more produce in the market due to decreased quality, Fruit-Inform reports. The increased supplies had direct consequences for the prices, which have gone up since the start of this year. Onion growers want to keep the price level steady, and are willing to make concessions with large sales. Prices were between 34 and 38 cents per kilo last week. That's 50% more expensive than a week before. The import of Ukrainian onions (via Crimea) went down significantly last week.
Ecuador and Venezuela visit Moscow
The ministers for Foreign Affairs and Oil of Ecuador and Venezuela visited Moscow last week to discuss the oil price. Both countries want to attract Russian companies from the oil production. The plummeting oil price had major consequences for Russia, Venezuela and Ecuador. All three nations are largely dependent on the oil income. Relations between the two countries and Russia have improved lately. Trade between Russia and Ecuador has increased, and Venezuela is seeking rapprochement with Russia after the US imposed sanctions on the country.
Iran wants 10% market share
Iran has once again made clear it looks to profit from the boycott, wanting to increase its market share in Russia to 10%. According to the Iranian secretary of the Food Industries Association, Kaveh Zargaran, the boycott offers a "golden opportunity". He sees opportunities for the export of apples, for instance. "Iran has a surplus of apples," Zargaran told an Iranian news site. Since Russia imported many apples from the EU, Iran now has to be able to profit from that, he thinks.
Growing demand beetroot in Ukraine
Demand for beetroot went up in Ukraine last week, causing beetroot to become on average 10% more expensive in a week's time. Prices are fluctuating between 7 and 10 cents per kilo. The lowest prices are received in the west of the country. Prices are 10-15% higher than last year during the same week. This is caused by growing demand and relatively low supplies. Late October, a part of the harvest was lost due to a period of cold.
Poland wants to take more off the market
The Polish Ministry of Agriculture has plans to take more produce off the market. This would concern 155,700 tonnes of apples and pears, and 18,650 tonnes of tomatoes, cucumbers, bell peppers and carrots. Growers would file a claim until the end of June to take products off the market. For every grower, the limit is a maximum of 500 tonnes, or 10,000 tonnes for each growers' association.