EU Russia flags 3

Russia's ban on agricultural products from the European Union and other countries including the US has sent shockwaves through Europe's fresh produce sector.

Thomas Drahorad of Italian supplier NCX Drahorad said the ban – a retaliatory measure for the sanctions levied against the country for its disputed role in last month's Malaysia Airlines crash in eastern Ukraine –would have an immediate impact on the country's stonefruit exports.

'Russia has become a very important market for us in the last few years,' he told eurofruit. 'Traditionally, Russia would start to import more from Italy from the month of August, so it is very bad for Italian exporters. The immediate effect will be on peaches and nectarines, but also plums.'

Since the domestic market cannot possibly absorb the additional volumes, a situation exacerbated by a drop in Italian consumption of fresh produce in recent years, other destinations will need to be found.

'For kiwifruit, the impact will be less significant since we have been extending our exports to markets including Asia, the Middle East, South America and North America,' said Drahorad. 'But for stonefruit, apples and pears, there will be a major effect.'

One Dutch importer-exporter admitted the ban would cause serious problems for Netherlands-based traders, the majority of which send mixed loads to Russia. However, he expressed relief that the main salad season was coming to an end and that the busiest months of April and May had already passed.

Problem for topfruit

Nevertheless, huge problems are inevitable should the ban last for the entirety of the mooted one year period. Many, including Belgian topfruit exporter Bel'Export, hope the ban will be more short-lived, but the company is wasting no time in seeking to alleviate the effects.

'Around 50 per cent of our pear crop and 30 per cent of our apples usually go to Russia, so this will not be good for us,' he said. 'We hope to be inventive enough to find other markets. We are currently looking at the US, Canada and Brazil. We've been waiting seven years for an export licence to send to the US with still no result. Hopefully, this situation will push things along and lead to some progress.'

News from Prognosfruit, the annual European topfruit conference taking place this week in Istanbul, Turkey, suggests that this year's European apple crop will be 9 per cent bigger than last season and the largest for at least a decade at just below 12m tonnes.

The World Apple and Pear Association also forecast a drop in volumes from China and Turkey and a 2 per cent decrease in global volumes, suggesting that some markets may well require more European fruit.

Vegetables under pressure

Fermín Sanchez, general manager of Spanish exporter Gruventa, revealed that the ban had come as a big surprise and was a major blow for the country's already-struggling producers.

'Russia is the EU's third biggest vegetable market in volume terms so the repercussions from a total ban will be severe,' he said. 'I hope the politicians can resolve the problem quickly and don't aggravate what is already a difficult situation for Spanish producers who are having to contend with low prices, challenging climatological conditions and increased levels of competition from non-EU countries this season.'

In Poland, a country likely to be hugely affected by the ban, a social media campaign entitled 'Eat apples to annoy Putin' was created last week, apparently leading to a massive increase in domestic consumption.

Philippe Binard, general delegate of Freshfel, the European fresh fruit and vegetable association, said that the organisation was looking to help wherever it could, but warned that the situation was complicated.

'We are monitoring the situation, seeking alternatives and looking for tools to assist the sector,' he said. 'The solution may be different for each product. It is very complex and goes way beyond fruit and vegetables. It is also not just limited to the EU, with Australia, Japan, the US, Canada and Norway all affected as well.'