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Back You are here: Home News Effects Of Restrictions Against Turkey On Tomato Prices In Russia

Effects Of Restrictions Against Turkey On Tomato Prices In Russia Featured

21 December 2015

Information about the introduction of bans on fruit and vegetable products from Turkey caused anxiety for the industrial market, which specialists are comparing to the restrictions of supplies during the summer of 2014.

The ban did not come unexpectedly as the Russian government, the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor), Federal Customs Service and other oversight agencies had announced their preparedness to pass such a measure several times before the ban officially took effect.

Reports about increasing prices on fresh tomatoes in mass media were seen ahead of the Kremlin's official decision to place restriction on Turkish products and at a time when suppliers started reporting to their partners about the rising cost of products. In an earlier publication “Russian Tomato Production Will Provide for 100% of Market in 5 Years”, IA FruitNews reported several such instances:

“The General Director of GK Real Alexander Myshinsky said that Kuban producers had already increased the purchasing price on tomatoes by 20 percent. If by November 23 the cost of one kilogram of products was 55 rubles, then by November 27 it would amount to 75 rubles, and by December 1 – 135 rubles. An even more drastic increase in tomato prices was published in the list of official sanctions by the restarantour and owner of the chain restaurant Ukrop Alexander Gamayunov. The cost of products jumped from 87 rubles to 200 rubles. In his opinion, suppliers would rather raise prices in a panic while quoting information coming from the television.”

Official agencies, at the federal and regional levels have reported the absence of any problems with substituting Turkish tomato imports. One reason for this is because there have been opportunities and increased imports from alternative countries.

Russia's Official Statistics Service reported the following numbers regarding price variations for tomatoes across Russia:

Price Variations for Tomatoes Across Russia's Regions for Last Six Weeks (in rubles per kilogram)

Official statistics does not indicate the same panicked behavior of some market participants. Over the past six weeks, the average cost of produce in Russia grew, and dropped, but the increase in cost during this period, when the measures against Turkish products was made, nearly matches the growth observed at the start of November.

From November 2 to December 7, tomatoes decreased in price on average by 13.31 rubles; however, individual regions in Russia may have reported various changes in prices.

Price Variations for Tomatoes in CFO (Central Federal District, which includes some of Russia's Largest Cities including Moscow) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in SZFO (Northwestern Federal District) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in SFO (Southern Federal District) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in SKFO (North Caucasus Federal District) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in PFO (Volgograd Federal District) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in NFO (Northwestern Federal District) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in UFO (Ural Federal District) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in SFD (Siberian Federal District) for Last Six Weeks (in rubles to kilograms)

Price Variations for Tomatoes in FEFD (Far Eastern Federal District) for Last Six Weeks (in rubles to kilograms)

In the CFO, the difference in price was 12.94 rubles; in SZFO – 10.51 rubles; in SFO prices increased 24.79 rubles; SKFO – 37. 53 rubles; PFO – 11.64; UFO – just 2.91 rubles; SFD – 6.41 rubles and in FEFD – 17.24 rubles.

Price Variations for Tomatoes in 8 Of Russia's Districts for Last Six Weeks (in rubles to kilograms)

Price Comparison for Tomatoes in All Of Russia's Districts for Taken On Three Separate Occasions (in rubles to kilograms)

Customs data on tomato imports – fresh and chilled products – from Turkey to Russia between January and September 2015 amounted to 292,83 thousand tonnes. For the whole of 2014, the Russian market imported 365.56 thousand tonnes, and in 2013 imports amounted to 335.01 thousand tonnes.

This season the cost of shipments reaches US $281.33 million. In 2014, purchases amounted to US $439.28 million and US $450.62 million in 2013.

Turkey was one of the few countries that was able to increase their export volume of tomatoes to the Russian market over the last three years. At the same time, in connection with the weakening of the ruble and a drop in consumer demand, the monetary value of these imports to Russia dropped.

Many specialists and analysts are expecting significant price hikes as New Year's Day approaches. IA FruitNews will continue to monitor the situation and the ongoing market changes and would appreciate readers' perspectives and first-hand accounts.

FruitNews article (Russian): http://www.fruitnews.ru/home-page/analitic/45193-vliyanie-ogranichenij-na-postavki-iz-turtsii-na-tsenoobrazovanie-tomatov-v-rossii.html

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