“Domestic producers are happy”: a reaction to the restriction of the import of Turkish products

“Domestic producers are happy”: a reaction to the restriction of the import of Turkish products

From January 1, Turkey will not be able to deliver to Russia a number of fruits, including oranges, tangerines, grapes, apples, pears, peaches, strawberries. In the restrictive list and vegetables: tomatoes, cucumbers, cauliflower and broccoli, onion. In addition, ban the importation of frozen parts of carcasses and offal of turkeys and chickens. Also banned – Turkish fresh cloves and salt.

Moreover, this prohibition does not apply to goods imported on the territory of Russia for personal use, to the extent permitted by the Eurasian economic Union.

“For our farmers this is a big plus”

The head of the Duma Committee on agrarian issues Nikolai Pankov supported the decision of the government.

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Russia prohibits the importation of strawberries, mandarins, oranges, tomatoes and cucumbers from Turkey

“It is important that these (forbidden) products did not come to us through third countries,” – said Pankov. He called the decision of the Cabinet of Ministers “balanced” and recalled that earlier, Deputy Prime Minister Dvorkovich spoke about the need to study “the presence of those or other kinds of vegetables, fruits and products, substitute (import) from Turkey, and slowly to enter (not allowed)”. “The commissioning of the measures from January 1, suggests that it’s a calculated decision,” – said the Deputy.

“For our farmers this is a big plus, we understand that need (it) to have and to make every effort in order on the shelves has become as much Russian, environmentally friendly and high-quality products,” continued the politician. According to him, “in the specific weight of vegetables and fruits from Turkey constitute a very small percentage, so replace them will be possible.”

“However, the Supervisory authorities should now more closely observe the operation of commercial enterprises and networks, to avoid artificial increase of prices, because we understand that, especially the vegetables that we are 100% themselves substituted, for example, potatoes, cabbage, onions, other positions – can’t be more”, – noted Pankov. “In any case, this decision will have a positive play that we further increase of the Russian agricultural products”, – he concluded.

“Domestic producers are happy”

The Deputy Chairman of agrarian Committee Hopes Skalkidou is not surprising the list of products prohibited for import from Turkey.


Turkish products prohibited for import to Russia from 1 January 2016. Dossier

Russian-Turkish economic relations. Dossier

Political divisions of the Russian Federation and Turkey. Dossier

“Domestic producers are pleased, in particular, I know the poultry industry welcomes these measures”, – she said. “As for citrus, the stores are Abkhazian mandarins, Moroccan. I think within two weeks the business has been shifting logistic flows, and the shops will be food, Turkish alternative,” suggested the Deputy.

As for prices, the last 10-15 years, before the New year the prices in the shops are rising, but by the end of January it decreases again, reminded Shkolkina. “This is due to the fact that citizens actively bought before the holidays, and enjoys a trade,” she explained. “Of course, the Ministry of agriculture to take control of the price. However, I believe that in the current circumstances, public control over the price level is very important”, – said United Russia. “Buyers who complain, for example, in the CPS,” she advised.

“Such experience at us already is”

Russia will be able to replace most of the products from Turkey, embargoed, according to the Association of producers and suppliers of food products Rusprodsoyuz.

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“Most of the list (of banned products – approx. ed.) can partially replace its own or through a redirection of logistics flows,” said development Director of Rusprodsoyuz Dmitry Vostrikov. He also noted that market players have a month until the entry into force of the ban. “During this time, you can analyze the situation and to begin negotiations on the supply with Russian and foreign suppliers. A similar experience we already have,” said the representative of the Association.

At the same time, Vostrikov noted that the 1 January 2016 predamage against Turkey will help the development of domestic agriculture. “This decision provides the incentive for our manufacturers to invest in the development of fruit and vegetable production”, – he told, having reminded that now the Russian agricultural sector can replace the fallen volumes of vegetables and fruit only partially. Despite the active development of a segment of greenhouses and the construction of wholesale-distribution centers, infrastructure of the Russian Federation is not yet ready for year-round production and supply of fruit and vegetables on the domestic market, he said.

“Will continue to grow and prices to decline range”

Turkey until recently was the largest supplier of citrus to Russia in the season of 2014-2015 (August – July) on the country-accounting for approximately 36% of the total imports of these fruits in Russia. Ban on import of some kinds of this production (oranges and tangerines) can cause further growth of prices on Russian market of fruit and increase the share of “grey” imports. This opinion was expressed by industry in the Agency FruitNews, commenting on the list of bradenburg in relation to Turkey and the possible consequences for the Russian market.

“If we talk about Turkish citrus in season 2014-2015 supplies from Turkey amounted to approximately 36% of the total imports of these fruits in Russia, by weight, (562 thousand tons from 1 million 567 thousand tons). In previous seasons, this share was approximately 24-25%,” – said General Director of branch Agency Irina Goat. According to her, in many respects, Turkey managed to ensure the growth of supply due to the withdrawal from the market of European suppliers.

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In terms of restrictions on the import into Russia of Turkey’s oranges and mandarins Russia will partially replace the supply of products from Morocco and Egypt, noted Goat. However, even the suppliers from Morocco and Egypt will be difficult to rapidly increase the volume of deliveries, as Russia already imports a very substantial proportion of the goods produced in these countries, and additional volumes will be difficult to find, the expert warns.

Thus, the probability that the price tag on the fruit will grow. “It is most likely that the products will be in short supply, will continue to be “grey” imports through third countries (e.g., Belarus), will continue to grow and prices to decline range,” said Goat.

At the same time, the expert found it difficult to estimate the possible rise in prices, noting that at the fruit market in Russia is now affected by many negative factors, including the fall of the ruble and the shortage of supplies due to the drop in purchasing power. “Supply constraints are just one factor out of a long series. But now our data monitoring showed that rising prices of fruits for Russian consumers over the past year ranged from 60% to 100% depending on product categories. Accordingly, we will wait for further price rises and further reductions in the consumption of fruit and vegetables by the population of Russia”, – concluded the expert.

With Turkish goods, it was difficult to compete

The company OOO “Kuban Vegetables” increased the area of greenhouses devoted to growing tomatoes, from 5 to 15 hectares. Annual production of this vegetable crop, the company will thus increase from 2.5 to 7.5 thousand tons.

According to financial Director of the company Alexey Konovalov, previously to increase the cultivation of tomatoes was difficult due to high competition with Turkish producers.

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Manufacturers say that with Turkish goods is difficult to compete was not due to the difference in output in favor of companies from neighbouring States, and due to the longer storage time and early deliveries.

“We have tomato production is from March to November, the rest of the time on the shelves of present in most products from other countries. Minus in the fact that our vegetables have a shorter shelf life than the same Turkish”, – said Konovalov.

The Russian production of vegetables increased in the last two years, in 2015 the market will be supplied with additional 60 thousand tons of tomatoes. About it on air of radio station “Russian news service” said the President of the National Union of vegetable producers Sergei Korolev.

“A significant share of imports from Turkey was tomatoes… We increased our production over the last two years invested 40 billion rubles in construction of new modern greenhouses that produce high quality and tasty vegetables. This year we will give the market an additional 60 thousand tons of tomatoes”, he said.

“The percentage of Turkey is prepared to substitute suppliers from the countries of North Africa and the Middle East”

The share of Turkish goods in stores X5 Retail Group (the group consists of “Pyaterochka” and “Crossroads”) does not exceed 1%, the company said.

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“Mainly from Turkey imported some seasonal fruits, vegetables, nuts and fish. The combined share of Turkish goods in networks X5 does not exceed 1% of annual turnover”, – said the press service.

The company believes that it will be able to quickly replace the prohibited products, and to promptly establish an alternative supply chain.

“The percentage of Turkey is prepared to substitute suppliers from the countries of North Africa and the Middle East,” concluded the company.

“In peak season, the proportion of Turkish citrus may exceed 50%”

In peak season the proportion of citrus fruit from Turkey in the shops of “Dixy” could exceed 50%, some vegetables – 40%, reported by the official representative of the retailer Catherine Kamanina.

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“From the specified list in the range of “Dixie” was attended by some kinds of vegetables and fruits. In peak season the proportion of Turkish citrus may exceed 50%, some vegetables – 40%. Poultry meat from Turkey to “Dixie” was not represented,” she said.

The network mobilized its procurement efforts and can quickly adapt to a pool of suppliers to ensure continuity of supply, says Kamanina. According to her, the processes are intense, but in a working mode.

“In the produce category, in particular citrus group, which for climatic reasons cannot be replaced with domestic analogues, it is planned to broaden the scope of cooperation with suppliers Egypt, Morocco, Israel, Pakistan, South Africa, Argentina, Peru. Once Mature domestic greenhouse vegetables, they will appear on the shelves,” – says Kamanina.

The representative of the retailer assured that limitations will not affect basic consumer basket.

The flower market does not suffer from a ban on the import of Turkish carnations

The interviewed experts claim that the Russian flower market is not affected by the ban on import of Turkish carnations, as the demand for this flower was small.

Until recently in Russia from Turkey were imported and sold cut carnations and greenery for bouquets, and the share of Turkish products in the market is very minor, reported the press service of the company Florist.ru. “By estimations of importers of flowers, Turkey provided not more than 3% of the total quantity of imported cut plants”, – said the press Secretary of the company of Akhmetov Waist. According to her, in recent years the quality of supplied products from Turkey fell slightly, which also affected the lower purchasing carnations in this country. Currently a much larger share of carnations Russia buys from Holland, Israel, Ecuador, Kenya and other countries, which can cover the demand of Russian buyers in the flower, said the expert.

The CEO of the company Megaflowers Sergey Semenov reported that the demand for cloves in Russia is quite high – the total volume of sales it ranks about fourth or fifth place along with gerberoy, accounting for about 10% of sales. “But basically it is products of Ecuador. Therefore, the prohibition of the Turkish carnation will not have a significant impact on the market and the price of flowers,” – said Semyonov.

He added that Turkish carnation is not popular among Russian florists. “Turkish carnation came out with color. Compared with other manufacturers it is not as bright, juicy color, she did not scarlet. Although it attracts the consumer price. Slightly, but at the price of Turkish flower cheaper”, – said the representative of Megaflowers.