Apple, pear marketers eye Russia - The Packer

Apple, pear marketers eye Russia

04/07/2008 12:00:00 AM
Tom Karst

(April 7, 11:35 a.m.) Washington apple exports to Russia have room to grow and could hit close to 1 million boxes this year, said Rebecca Baerveldt, export marketing manager for the Washington Apple Commission.

About a dozen firms export apples and pears to Russia, with some exporting directly and others using agents to move fruit to Russia, she said.

While Baerveldt didn’t name companies involved in the deal, large sized firms like Wenatchee-based Stemilt Growers Inc., Columbia Marketing International Corp, Northern Fruit Co. Inc., and Yakima-based Rainier Fruit Co., among others, send fruit to Russia one way or another.

“Right now, really from what I’m hearing, we are constrained by transportation and supply,” Baerveldt said. “In fact, importers have reported that they would have been able to ship 30% to 50% more this season, and shipments already to Russia are up 80% this year over last season. We are definitely in the growth stage.”

Baerveldt said some importers ship as much as 80% to 90% of the fruit they receive to customers in the interior of the country, not necessarily to Moscow and St. Petersburg.

The apple commission left Russia after an economic meltdown in 2000, but work by U.S. Department of Agriculture Foreign Agricultural Service staff, including and USDA agriculture specialist Eric Wenberg and Russian assistant Ksenia Evdokimov, convinced the commission to restart export promotions.

“They basically were the ones that dragged WAC back into Russia,” she said. “Eric came up to me and said, ‘People want your apples, and there is going to be tremendous amount of growth in that market.’”

“In 2004, I made my first trip to Russia in several years, and we went ahead and started up a program.”

Russia is now the fourth-largest export market for U.S. pears after Mexico, Canada and Brazil, said Kevin Moffitt, president and chief executive officer of the Pear Bureau Northwest.

From August through the first week of March, Moffitt said Northwest U.S. pear marketers exported 327,000 44-pound boxes to Russia, up 76% from the previous year’s shipments.

“I think it is still a market you have to be careful in,” Moffitt said. “A lot of shippers don’t want to ship there at all, and some of them are looking for most of the money if not all of the money up front. Very little credit is being offered, but if the relationship between the shipper and the importer evolves, we could see this market hit 500,000 cartons very easily.

“Used to be when we were just shipping to the Russia Far East eight or nine years ago, it was a market for lower grade fruit. It was kind of a situation that we will take anything you can give us for $12 per box.”

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