The situation in Russia's wholesale market of frozen fruits and vegetables in late 2009 and early 2010

Jan 19, 2010
Kamalov Timur

The situation on the wholesale market of frozen fruits and vegetables has shown a tendency to increase prices on most popular items.
Rising prices for imported frozen berries and vegetables from Poland is due primarily to the expectation of further increases in the cost of delivery of frozen berries and vegetables from Europe. Unfortunately, these expectations are not groundless. Also, higher prices for frozen vegetables contributes to a difficult situation as a whole in the world with the harvest of different positions. As previously mentioned in the last article, because of the significant deterioration in weather conditions in China, USA, Spain and Chile, have fallen rate of harvesting fresh vegetables and some berries. Accordingly, prices for frozen vegetables (frozen broccoli and others) have demonstrated growth in China. Also because of frosts in the U. S., Spain and even Chile, the volume of the collection of fresh strawberries in these countries is projected lower than expected. This is natural after a while, probably by February 2010 will affect the market conditions of frozen strawberries and frozen vegetables.

Prices for frozen lingonberries and maintain positive momentum. In 2009, the gathering lingonberries in Russia fell for various reasons. Accordingly, prices of frozen lingonberries since the fall of 2009 began to grow steadily. An alternative source of frozen lingonberries is China. But this year due to increased demand for frozen lingonberries in Europe and Japan, in the proposed frozen lingonberries for Russia declined, which also stimulated a further rise in prices for this berry. As a result, prices of frozen lingonberries as of January 19, 2010 established in the wholesale market of frozen berries at the level of 95-105 $ / kg. Prices can vary within this range depending on the amount and terms of delivery. The demand for frozen lingonberries remains high.

In 2009, prices of frozen lingonberries also showed steady growth until March, but then demand has fallen considerably, and the proposal significantly up. This resulted in lower prices for frozen lingonberres from 110 $ / kg down to 75-85 rubles / kg by mid-summer and early autumn. This year, the volume of import of frozen lingonberries from China declined. Therefore possible stabilization of prices of frozen lingonberries at 110 rubles per kilogram in February-March 2010. Further price trends for frozen lingonberries will depend on the level of demand.
Prices for frozen blueberries still relatively stable. It also remains stable demand for frozen blueberries. Prices vary in the range of 100-110 $ / kg.
Prices for frozen cranberries also stable. As we expected, information about the cranberry crop failure was not confirmed. Prices have stabilized at 75-85 rubles / kg.

Interesting dynamics in 2009 showed prices for frozen whole raspberries and frozen raspberries gris. Since September 2009 the price of raspberries gris dropped significantly from 120-130 $ / kg up to 70-85 rubles / kg by October 2009. Thus the price of extra raspberries (whole berries) remained at the same level of 140-150 USD / kg as of October-December 2009. This is due to fall in the quality of harvested raspberries in Poland because of weather conditions.

Prices for Chinese strawberries have also begun to show the trend of gradual growth in late 2009. This is due to higher prices at the manufacturing plant in China, with an expected increase in the cost of shipping from China and a gradual increase in demand for frozen strawberries in Russia in connection with the start of the season sales. At the moment, prices are formed in the range of 47-52 rubles / kg of Chinese strawberry 25-35 mm. Prices of Polish frozen strawberries are close to the mark of 60 rubles / kg.

Prices blackberries are also showing an upward trend.

The general situation in the wholesale market of frozen berries relatively stable. This also relates to the stability of exchange rates of the dollar and euro against the ruble.