MARKET SITUATION ON THE WHOLESALE MARKET OF FROZEN BERRIES AND VEGETABLES IN RUSSIA

Publication: 08.11.2009. Author: Timur Kamalov e-mail: t.kamalov@berriesrade.com

The situation in the wholesale market of the frozen cranberry, a bilberry and a cowberry remains uncertain. For the first time the majority of suppliers assert that deficiency of all three positions of the frozen wood berries is formed. 

            The frozen cranberry by the end of summer has fallen in price to 65-70 rub/kg in the Moscow region. In this connection, demand for a cranberry began to grow gradually. All participants of the market expected a new crop of a cranberry and definitive stabilisation of the prices for this berry. But market condition gradually began to vary and by the time of end of a season of gathering of a fresh cranberry, the price for the frozen cranberry have started to grow. As soon as the first snow in the north has dropped out, practically at once the rise in prices for the frozen cranberry was accelerated. As a result, on the first week of November of the price for a cranberry of 75-80 rub/kg with the steady tendency to growth were generated at new levels in a range. It is important to notice that in 2007 the first wave of a rise in prices for a cranberry has stopped at level of 85 rub/kg because it is the first level of considerable resistance in the market.            

          The situation with frozen wild blueberry also remains inconsistent. As a whole the prices for the frozen wild blueberry were generated and stabilised at fair level for a supply and demand. At the moment of the beginning of November, the price for the frozen wild blueberry were at level of 100-110 rub/kg at sales in small volumes. In regions of gathering, the price for frozen wild blueberry about identical at the majority of suppliers at level 80-90 rbl./kg. In a current season deficiency of the frozen lingonberry again is observed. As a result of the price for the frozen lingonberry have started to grow quickly after the termination of harvesting and to the beginning of November the point 90-100 rbl./kg have already reached. Considering that similar market condition concerning the frozen cowberry was observed last year, we expect reduction in demand for the frozen lingonberry as it was in last season. Also again it is expected that participants of the wholesale market of the frozen berries will start to compensate a lack of volumes of the frozen lingonberry in the wholesale market with imported of the frozen lingonberry from China. We predict that demand for a lingonberry will start to fall together with stabilisation of the prices for it by the end of March – to the beginning of April, 2010. It is necessary to notice that deficiency of the frozen lingonberry can play further a role in formation of the prices for the frozen cranberry. On our supervision over the market condition, the frozen cranberry and the frozen lingonberry always were interchangeable berries in the market.             Contrary to expectations, the prices for a strawberry are at rather low levels. It is connected with import to Russia considerable volumes of the frozen strawberry from China, and various quality. In connection with a high competition in the market, especially in the Moscow region, the prices for a strawberry have fallen to a price level to the frozen strawberry 2 classes. On the beginning of November the price for the frozen strawberry correlate from 30 rub/kg (2 class) to 43 rbl./kg. Price for the Polish strawberry were generated above as in Poland the strawberry poor harvest was observed.            

            The prices for the frozen cherry have unexpectedly fallen in connection with presence in the wholesale market of considerable volumes of a cherry 2 classes both from Serbia, and from Poland. During the summer period  the prices for a cherry were rather stable. After the termination of a season of gathering of a fresh cherry, contrary to expectations, the prices for a cherry practically have not changed. Though the majority of the Polish manufacturers have confirmed that in connection with weather conditions quality of the frozen cherry has worsened also volume of the frozen cherry of 1 class has considerably decreased.            

            The matter is that in Serbia there was a crisis of overproduction of the frozen cherry in last season of 2008. The Serbian manufacturers long time kept the price for the frozen cherry above, than the Polish manufacturers. Therefore in 2009, under the statement of many Serbian manufacturers, the most part of a fresh cherry has not been collected and remained on trees. It is connected with great volumes of storage of the frozen cherry since 2008. Manufacturers first, had no financial resources for purchase of a fresh cherry of 2009, secondly, manufacturers had no free capacities for frosts of a cherry and for its storage. Thirdly, also according to participants of the Serbian market, Germany as the basic consumer of the frozen berries from Serbia in 2009 has considerably lowered volumes of the orders. Sale of the frozen cherry as past, and 2009 in the Russian market became a unique exit from a difficult situation for the Serbian manufacturers. Therefore the Serbian trading companies came to the Russian market at once  in the beginning of autumn.            

            Occurrence in the market of new participants with rather low prices (50 rub/kg) at the average price at that point in time 55 rub/kg, have led to reduction of prices in the market to 48-50 rbl./kg Nevertheless, in connection with the general stagnation of the market during the summer and autumn period, some Russian importers have started to import a cherry 2 classes and have even more reduced the price to 45-46 rbl./kg it and has led to the general reduction of prices in the market. As the crisis have not passed yet, consumers still are guided first of all by the low prices, and in the second turn on poor quality of production. As a result, the majority of importers and participants of the wholesale market of the frozen berries sell a cherry 2 classes.            

              The prices for the frozen black currant and blackberry during the autumn period and prior to the beginning of November practically did not vary that speaks about stabilisation of the prices for these berries.             The majority of participants of the market expects rise in prices for the Polish production in November, 2009, being based on experience of last years. Especially, the majority is excited with a situation with the prices for the frozen vegetables, as the most popular positions during the period from January till April. Rise in prices for frozen production from Poland occurs in connection with a rise in price of transport which has already occurred, in connection with a seasonal rise in price of the prices of manufacturers at transition to the winter period.            

               Many Polish manufacturers testify to very bad situation with a crop of vegetables: a green bean, a cauliflower and a broccoli. Nevertheless, while the prices for these positions are rather stable.