After speaking with several U.S. agricultural trade groups to discuss the effects of the Russian import ban, here at www.freshfruitportal.com we delved a little deeper by discussing the issue with U.S. and Canadian grower associations involved with certain produce items. While the consensus seems to be that Russia was not a particularly important market for exporters, a more pressing aspect is the possibility of increased competition with Europe in other global destinations.

Click here to read more from our extensive coverage on the Russian ban.

Pears

U.S.-based Pear Bureau Northwest international trade director Jeff Correa said that despite Russia only receiving 2.6% of exports, it was still the third-most important destination in 2013.

"That was about 550,000 boxes," Correa said.

Mexico and Canada collectively receive more than 60% of total exports.

Growers are anticipating lower production this season, which could work out very well for exporters as they have one less market to supply.

"Potentially we could have 2 million boxes less in production so that takes off some of the pressure of losing the Russian market for at least this upcoming season," Correa said.

Correa pointed out that Russia was an important market for certain varieties like Forelle, so it might be difficult to find new customers for those ones.

He added that the biggest challenge this coming year would be the increased competition coming from European countries.

"Poland, the Netherlands and Belgium had extremely high reliance [on Russia]. With Poland about 60% of their exports were to Russia, Belgium had about 40% and Netherlands about 20%," Correa said.

"That means as a lot more fruit is going to stay in Europe which would flood the market there, or they will most likely also look to export to other markets.

"The Middle East, Asia, are the top potential destinations so that's where we potentially expect more competition in those markets because we are both exporting in the October through February window. I think for us exports to Europe will probably be very minimal."

Table grapes

California Table Grape Commission president Kathleen Nave said despite the fact Russia was already a declining export market before the ban was announced, any cases of lost trade were important.

"We shipped 130,000 boxes to Russia in 2013, valuded at US$2.7 million. Total boxes shipped were over 48 million," said Nave.

"We will probably have a record crop this year and we work very hard to keep markets open and to provide every opportunity everywhere around the world for California table grape shippers to be able to send their product.

"So we don't want to lose Russia, even 130,000 boxes, and there will be some fruit that would have been shipped and then transshipped that will also have to find another home. And then if you just think about it in terms of California agriculture as a whole all those small amounts add up."

Nave went on to explain how marketing activity in the ex-Soviet country had been in decline over the last few years due to several different reasons.

"In actuality we don't have even a marketing plan. In years past we've had a marketing plan - we've had two people who worked for us in Russia, one in the east and one in the west and we had marketing plans, so we at one time had hopes that would be a very big market for us," she said.

"But through the economic downturn and for a number of reasons having to do with changes internally in Russia in their fresh fruit structure, at least that relates to grapes, it has been a declining market.

"We actually expected that this year's shipments to Russia would be less than last year's."

Nave summarized that overall 'the impact is limited'.

Apples

A representative of Washington State apple growers said that due to the relatively low volumes sent to Russia, his biggest concern for the upcoming year would be increased competition in other world markets.

"This last season, which we are just now completing, we shipped a total of 598,000 cartons to Russia. It's a relatively small percentage. This year we had 115 million cartons in total," said Washington State Apple Commission president Todd Fryhover.

"It's a small market but every market is important. Washington exports 34% of it's total production so losing any market is worrisome.

"But I think it's more significant for the EU countries and where they end up with putting that additional fruit into Russia is a critical factor to our planning and the directions for our promotional activities."

Almonds

Almond exporters appear to be one of the biggest losers of the Russian embargo in the U.S. in terms of value.

"Year to date, shipments to Russia represent about 3% of total California almond exports. Russian imports of almonds from the U.S. in calendar 2013 were approximately 23,500 [metric] tons, with a value of [US]$126 million," said a statement from The California Almond Board.

"The sanctions are particularly disruptive to consumers and manufacturers in Russia, who recognize the nutritional benefits of almonds. We look forward to working again with our customers in Russia, once the market is reopened."

"The Almond Board will continue to monitor the situation, working closely with US government."

The organization added that shipments to Russia had doubled over the last five years, but said it did not "anticipate a significant impact on overall export sales of California almonds".

Pistachios

American Pistachio Growers global marketing director Judy Hirigoyen said that Russia represented around 1% of U.S. exports, and as such the consequences would not be severe.

"This will have a minimal impact on us as it was a small percentage of trade. Russia was a developing market for us," she said.

"It is more of a disruption to business - everything is very up in the air as it all seems quite vague."

Hirigoyen added she had no doubt that growers and exporters would be able to find alternative markets for their produce.

U.S. blueberries

U.S. Highbush Blueberry Council executive director Mark Villata said the effects of the Russian embargo would most likely be limited to the possibility of increased competition in other markets.

"We don't have a lot of business right now with Russia so I don't think it will have any big immediate impact on us. It's not a market that we've addressed yet," Villata said.

"Our major market right now is the Asian markets. We ship some to Europe but not a large amount, so I think in the short-term it's not really going to have much of an impact on U.S. highbush.

"I think it's too early to say at this point [what it will mean in the long-term] hopefully we'll get things resolved and we won't be facing this for a long period of time, so we'll keep our fingers crossed."

Canadian blueberries

British Columbia Blueberry Council executive director Debbie Etsell said that it was still very early to give an accurate assessment of the situation, but Russia was a small market for exporters so the effects would be minimal.

"We went up in 2013 and I think there was probably more going this year. It's not huge though," Etsell said.

According to official figures the region shipped 21 metric tons in 2013 to Russia.

"This is all new to us right now, we still have to evaluate and I hope that we have some loyal buyers and we'll find out how much effect this will have on us in Europe as well."

Are you a Canadian or U.S. produce exporter who has lost business in Russia. Be sure to let us know at news@freshfruitportal.com, either for our own information or if you would like to spread the word.

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