UPDATED: Russia bans U.S. produce - The Packer

UPDATED: Russia bans U.S. produce

08/06/2014 04:35:00 PM
Tom Karst

(UPDATED COVERAGE, Aug. 7) Putting at risk a key market for Northwest tree fruit, grapes and California nuts, Russia has imposed trade restrictions on select agricultural imports from the U.S. and other countries.

The sanctions apply to fruits, vegetables, nuts and other agricultural products from a long list of countries that have trade penalties against Russia for its role in the Ukraine conflict.

The ban on imports will apply to the U.S., the European Union, Canada, Norway and Australia, Russian authorities said.

Russian President Vladimir Putin said in an Aug. 6 statement that the sanctions will be in place for one year.

Russian importers are concerned, said Ksenia Gorovaya, director at Crisp Consulting near St. Petersburg. Her business works with Russian importers of U.S. fruit.

“Retailers are more careful with judgments, the official position is that they will manage to source local produce,” she said in an e-mail Aug. 7.

For U.S. fruit exporters, the trade sanctions come during the light season for exports to Russia, Gorovaya said. Not many U.S. fresh produce items were in transit, she said.

Russia is a big market for U.S. specialty crops. In 2013, Russia imported $138 million in almonds, $31 million in pistachios, $13 million in fresh apples, $12 million in pears and $2.7 million in grapes from the U.S.

In total, Russia in 2013 purchased about $170 million in tree nuts, $36 million in fresh fruit and $1.1 million in fresh vegetables, said Ken Gilliland, director of international trade and transportation with Irvine, Calif.-based Western Growers.

Russia is an important market for Northwest apples and pears, said Mark Powers, vice president, Northwest Horticultural Council, Yakima, Wash.

“With the size of crops we have on apples, we need every market,” he said. “We’re very concerned.”

No Washington apples have been shipped to Russia since the second half of May, so exporters should not have any fruit caught in transit by the ban, said Rebecca Lyons, international marketing director for the Washington Apple Commission, Wenatchee., Wash.

“We have several promotional programs set for Russia this fall, but until we have more information we are holding tight,” she said in an e-mail. “If we cannot ship to the market, then we certainly will have to make adjustments to the program.”

With the Russian sanctions also in place against big European pear producing countries of Poland, the Netherlands and Belgium — as well as the U.S. — pear exporters will be fighting for fewer export markets this year, said Kevin Moffitt, president and CEO at Pear Bureau Northwest, Milwaukie, Ore.


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Paul Fey    
Nasville  |  August, 09, 2014 at 03:48 PM

I fail to see the down side on this. This is the produce business , nothing stay's stationary in the first place. Who cares if the Russians ever buy another package ? Well , maybe the exceptions would be those who have Russian customers that is. But, in the larger picture it really does not matter at all. They are not that big of a factor in the scheme of supply. Name an item ? I dare you . And explain to us how the Russians made that item decrease in value due to any of this . Apples are going up not down . Grapes are still high and it's August . Soft fruit is demand exceeded supply on most of it. Oranges are still very expensive . So ???? What are they getting at with this non sense. Anyone that can read , knows that there is a global food shortage . Prices in the USA are so high that families cannot afford many produce items in their weekly grocery purchases !! Again , I ask you , Where is the down side ? Even if there are a hand full of farmers that grow exclusively for the Russians , who cares ? This is the risk each one takes before they plant a crop . You better be more concerned about water issues than the Russians . JMO

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