Imports of fresh fruit to Russia in 2008 and 2009

Russia's imports of American fruit are forecast to decrease 30 percent due to decreasing incomes and customers moving to the less expensive varieties.

 

 

The drastic appreciation of the dollar verses the rubles makes Washington apples and other American fruit less competitive on the market compared with more affordable Polish and Chinese fruit. As contracts are in dollars, the instability of the ruble coupled with the two month delivery time leave importers overexposed.

 

 

One of the top three Russian fresh produce importers - Sorus Co. was declared bankrupt on December 4, 2008. Also during December three of five Russian major fresh fruit importers, as well as smaller companies, stopped purchasing Washington apples and the remaining importers significantly decreased orders.

 

 

Furthermore, a good crop in Poland and the recent lifting of the ban on Polish produce resulted in market domination by Polish apples. Chinese, Serbian and Moldovan apples are also moving rather fast, while more expensive apples from France and Italy have rather low demand.

 

Commercial production of apples in Russia has been increasing since 2005 in response to the growing demand for local product from the processing industry and consumers. Official statistics reported that Russia produced 2 million metric tons (MMT) of apples in 2008, 40 percent over the 2006 level. However, the shortage of available credit will undoubtedly negatively impact new apple orchard projects so production is likely to level-off.

 

In 2008, the sales of U.S. pears to Russia started early and importers shipped substantial volumes of product before the Russian fruit market felt the impacts of the crisis. The Chinese pear became a stronger player in 2009 benefiting from its price advantage and newly sensitized consumers.