The products export from Russia increased to 3400% due to the devaluation of the ruble

The products export from Russia increased to 3400% due to the devaluation of the ruble


Peas and tube

Total exports of Russia last year has decreased in comparison with 2014, or 31%, to $343,4 billion, has estimated the world trade Center Moscow (WTC) based on the data of the FCS. The main reason is because of lower prices for its oil deliveries declined by 40.1%, to $of 174.3 billion.

Sale of certain products, on the contrary, increased sharply (see chart). For example, it sold 82% more tube and it’s products, although the volume of deliveries is small — just $1.16 million

Mainly sold agglomerated cork used for production of stoppers for wine. President of the National Union of food exporters Dmitry Bulatov said that the growth of this group can be only one explanation — the re-export from other countries, since the Russian tube is not grown. The volume of export has increased basically at the expense of deliveries to Ukraine, follows from the data of ITC.

In second place — vegetables, roots and tubers. Sales in this category increased by 63.4%, to $402,5 million the fastest (53% to $322,4 million) grew legumes.

Vice-President of the Russian grain Union Alexander Korbut noted that bean is one of the most popular Russian export crops. Due to the devaluation of the ruble to get her become more profitable, “manufacturers have increased production,” he said.

Main export legumes — peas, chickpeas, lentils, and peas accounted for more than 70% of the exports of pulses, said Korbut. The main countries buying legumes in Russia, Turkey, India and Pakistan. In addition, in the group of oilseeds and grains the largest increase showed the soybean export them increased by 401%, to $119,1 million

As previously reported, the soybean has in recent years become one of the most popular investment destinations among Russian agro-holdings. From 2010 to 2014 soybean production has increased six-fold, according to the agriculture Ministry.

For example, at the end of 2014 the company “Rusagro” Vadim Moshkovich bought in Primorye 26.5 thousand hectares of land for growing soybeans and corn, as well as to 13.75% of the plant “Primorskaya soya” in Ussuriysk. The General Director “Rusagro” Maxim Basov, commenting to “Vedomosti” buy, called the situation a “revolution in crop production”: “In the South it has been occurring for several years, has now reached Central Russia. In “Rusagro” have sowed more soybeans than sugar beet. Tell us about it a few years ago, we wouldn’t believe”.

In September 2015 “South of Russia” Sergey Kislov has announced to invest 12 billion rubles in the construction in the far East of the complex for deep processing of soybean and oilseeds.

Potatoes and cucumbers

From ITC data also shows that in 2015, dramatically increased the popularity of Russian potatoes: exports increased by 124,6%, to $17.3 million, a representative of the farmers Union of Russia Tatyana Gubina confirms the trend.

The main reason she sees that last year was harvested a record high crop of potatoes. According to the agriculture Ministry, the harvest of potatoes in 2015 amounted to 33.6 million tonnes at 15.9% more than the average level over the past five years. As a result, the average retail price of potato in the country has decreased, according to Rosstat, by 25.3% to 19,91 Euro per 1 kg, in 2015.

But due to the devaluation of the ruble, the price of Russian potato has become very attractive to foreign buyers, says Gubin. “Last year the most popular destination of exports were Ukraine, this year a considerable fraction it does not take an interest to the Russian potatoes had already expressed Azerbaijan, countries of Central Asia and Egypt,” — said Gubin.

Also noted was a sharp increase in the export of vegetables: supplies categories, including the carrots, turnips and beets, rose by 3418%, to $2.6 million, exports of cucumbers and gherkins — 2302,6%, to $1.7 million, different kinds of cabbage — 2446,8%, to $2.4 million, primarily this increase is due to the low base in 2014, said Director General of FruitNews Irina Goat.

However, for example, the growth of the cucumbers have really taken place, she adds, the Russian production of cucumbers in greenhouses has increased significantly, and the suppliers sent a surplus for export.

According to Rosstat, the average retail price of 1 kg of cucumbers in 2015 has increased by 26.8% to RUR 159

According to the report of the National Union of vegetable producers, in 2015 in Russia were collected 682 thousand tons (+6.6% by 2014) of vegetables in greenhouses. Cucumber is the most popular culture, providing 73% of this volume.

The closure of imports from certain countries have made vegetable growing in Russia a popular destination, said in January the General Director of the Institute for agricultural market studies Dmitry Rylko. For example, in January 2016, it became known that AFK “System” Vladimir Yevtushenkov bought the largest in Russia agricultural complex “Yuzhny” on growing tomatoes and cucumbers in the Karachay-Cherkess Republic with an area of 144 hectares. Bass said in December 2015, “Rusagro” plans to build 300 ha of greenhouses for growing cucumbers, tomatoes and salads in one of the Central regions of Russia.

In February 2016 about the plans to build greenhouses in the Krasnoyarsk region, said Chairman of the Board of Directors “Sail agro Group” Andrey Muraviev, who was previously the co-owner of United system of instant payments QIWI. The General Director of group “Cherkizovo” Sergei Mikhailov said in March that his company is also considering long-term vegetable growing as one of possible directions of business.

Malt and flour

Group cereals and flour-based products ranked third among the fastest growing export categories in 2015. Most of all — by 275,4% — in this group, increased sales of malt, amounting to $35.4 million In a press-service of the brewing company “Baltika”, which is one of the largest malt producers in Russia, explained that during the growth of the beer market farmers have a lot invested in the construction of malting plants, but when the market started to decline, there was a surplus. A depreciating ruble and a bad harvest in Asia has eased the task of finding markets, says a company representative.

According to the FCS, the main buyers of Russian malt in 2015 was in Latvia (increase of $8 million, or 22.7%), Taiwan ($5.8 million, 16.4 per cent), Kazakhstan (by $5.7 million, 16.2 per cent).

Meat

The ten groups of goods the export of which has increased markedly in 2015, includes meat and meat byproducts from WTC. Just last year there were exported meat worth $117 million, which is 11.7% more than in 2014.

The largest contribution to this growth was made by exports of poultry meat: sales increased 16.9% to $75 million Also increased sales of pork at 447%, to $9 million According to the President of the Meat Board of common economic space of the Customs Union Mushegh Mamikonyan, the exports of these two kinds of meat really growing significantly.

For example, one of the largest meat producers in Russia — Cherkizovo group — in February of 2016 announced the receipt of permits for export shipments of chicken meat in the United Arab Emirates. To 2019-mu “Cherkizovo” expects to increase the export of chicken meat to 15-20% of total sales.

The company also plans to start exporting poultry meat to Egypt, Iran and Iraq. Another market for the supply of poultry meat and pork could be China, now actively there are negotiations on opening the country’s market for Russian producers. The representative of the company’s transfers plans: “Russia has achieved almost complete self-sufficiency in poultry and pork. In addition, due to the weakening of the ruble, the price of Russian meat has become one of the lowest in the world. The combination of these factors makes the export of Russian meat are very attractive”.

Vice-President “miratorga” Alexander Nikitin said that the Asian market is really the most interesting to supply pork and beef. Now his company supplies meat products to Iran, Hong Kong, UAE. “If we talk about meat exports, don’t have access to veterinary main markets: China, Japan, South Korea, Vietnam. If it opens, there will be a lot of additional opportunities,” he said.

Agree with him and Mamikonyan: Russian pork very competitive in the Asian market — its price lower by 20-30% than in China.

According to Mamikonyan, the high export potential has Turkey. The Turkey meat production increased in 2015 faster than other types of meat — by 34.9%, to 205 thousand tons Major producers announced the development of its export destinations. For example, one of the largest producers of turkeys, the company “Damate” declared on exports in 2015.

As noted by the General Director of “Damate” Rashid khayrov, the main directions of export — Sierra Leone, Gabon, Vietnam, Hong Kong. The company has also received confirmation of the deliveries to Serbia is of great importance for Europe, reached an agreement on deliveries in the UAE, is expected to permit the export to Saudi Arabia. “Removing borders and expanding the geography of sales, we reduce our dependence on fluctuations in consumer demand on the Russian market and obtain more room to maneuver. In a situation of falling demand within the country, the export will give us the opportunity to maintain the profitability of production, and the consumer buying the product at the right price,” explains khayrov. In the future exports will go up to 25% of the total production, he says.

The group of companies “Evrodon” – the largest Russian producer of duck meat and Turkey, and in 2016 began to put duck tongues and paws to China. The company has entered into a contract to supply 40 tons per month with a Chinese importer.

Fabric

According to ITC, visibly in Russia (27.1%) increased sales of knitted fabrics to $9.7 million General Y Director-Consulting Daria Yadernaya believes that the growth of exports of dyeing of cloths and knitted fabrics is the result of recent years of investment by the state in treatment of tissues, and transferring the production of many companies: “We have realized that to produce the cloth we can’t scratch, because it’s expensive, but the coloring and final preparations for production can do.”

She recalls that a year and a half ago, one of the largest Russian manufacturers — “BTK Group” — received a major contract for the construction of the factory with dyes. According to her, after many production from China moved to Eastern Europe (Estonia, Latvia, Serbia) to spare, it happened that soon the production of wool for them now is not in China, and in Russia”.

To receive the comment “BTK Group” on Friday, March 18, failed.

Course for export

Three years Russian exports of products with high degree of processing should increase in one and a half times, said the President of Russia Vladimir Putin in 2014.

The Minister of agriculture of the Russian Federation Alexander Tkachev in October 2015 stated that in three years Russia will occupy a prominent place in the Asian market.

According to him, the high export potential are beef, wine, grain products. According to Bulatov, the export of raw materials in the total food export is approximately 40%, finished goods — 45%. In order to earn more in foreign markets, it is necessary to reduce raw material component in favor of the finished product, he said.

Featuring Anna Levinsky, Denis puzyryeva