Required Report - public distribution

**Date:** 9/9/2005

**GAIN Report Number:** RS5307

RS5307

**Russian Federation**

**Fresh Deciduous Fruit**

**Annual Report - Russia Fruit Imports Soar**

**2005**

**Approved by:**

![](media/image1.wmf)Eric Wenberg, ATO Director

American Embassy, Moscow

**Prepared by:**

Ksenia Evdokimova, St. Petersburg ATO

**Report Highlights:**

As Russian consumers' preferences change towards a healthier lifestyle,
as GDP quickly rises, and without a significant increase in domestic
production, fruit imports will continue to grow. According to GTI's
World Trade Atlas, in 2002, Russia imported 2.4 million tons, in 2003
3.2 million tons, in 2004 3.74 million tons of fruit, growing more than
15 percent each year. Fruit trade value in 2004 reached a record \$1.6
billion, 40 percent more than in 2003. Russia is the world\'s largest
importer of fresh fruit among the emerging markets, and is ranked sixth
globally in fruit imports behind only the wealthiest nations, the United
States, United Kingdom, Germany, Japan, and Canada. Lack of marketing
and brand awareness in the fruit industry will benefit exporters to
Russia who are willing to start advertisement activities in Russian
stores and grocery markets. While U.S. exports to Russia of fresh fruit
are quite small, at current growth rates, with aggressive marketing, it
may become a top-ten market in 2006. U.S. fresh fruit companies and
trade associations are exhibiting at World Food Moscow in September
2005. www.eng.usda.ru

Includes PSD Changes: Yes

Includes Trade Matrix: No

Annual Report

Moscow ATO \[RS4\]

\[RS\]

**Table of Contents**

[Executive Summary 3](#executive-summary)

[Fresh Fruit Consumption 3](#fresh-fruit-consumption)

[Marketing 4](#marketing)

[New Trends 5](#new-trends)

[Table 1. Fruit imports. Baltic customs fruit imports versa all-Russia
fruit imports.
6](#table-1.-fruit-imports.-baltic-customs-fruit-imports-versa-all-russia-fruit-imports.)

[Figure 1. Distribution Channel for supermarkets. Import of
transatlantic fruits (from USA, Argentina, Chile etc.) via the Greater
Port of St. Petersburg.
7](#figure-1.-distribution-channel-for-supermarkets.-import-of-transatlantic-fruits-from-usa-argentina-chile-etc.-via-the-greater-port-of-st.-petersburg.)

[Russian fruit importers 7](#russian-fruit-importers)

[Retail 8](#retail)

[Retail chains 8](#retail-chains)

[Table 2. Main Moscow food/non-food retailers
9](#table-2.-main-moscow-foodnon-food-retailers)

[Grocery markets 9](#grocery-markets)

[Open-markets established in 90's 10](#open-markets-established-in-90s)

[Fruit vegetable kiosks (only summer time)
10](#fruit-vegetable-kiosks-only-summer-time)

[Customs duties and fees on fruit 10](#customs-duties-and-fees-on-fruit)

[Table 3. Cost of customs clearing. Data provided by the Baltic customs.
11](#table-3.-cost-of-customs-clearing.-data-provided-by-the-baltic-customs.)

[Prices on fruit 11](#prices-on-fruit)

[Table 4 Prices on fruits, Russia.
11](#table-4-prices-on-fruits-russia.)

[Production 14](#production)

[Table 5. Apples -- Area Planted, Harvested, Production and Yield, Main
Producing Regions, MY 2004
14](#table-5.-apples-area-planted-harvested-production-and-yield-main-producing-regions-my-2004)

[Table 6. Pears -- Area Planted, Harvested, Production and Yield, Main
Producing Regions, MY 2004
15](#table-6.-pears-area-planted-harvested-production-and-yield-main-producing-regions-my-2004)

[Table 7. PSD, Apples 16](#table-7.-psd-apples)

[Table 8. PSD, Pears 16](#table-8.-psd-pears)

[Table 9. Prices of Imported Apples
17](#table-9.-prices-of-imported-apples)

[Table 10. Prices of Imported Pears
17](#table-10.-prices-of-imported-pears)

# Executive Summary

Due to increasing incomes, changes in consumer preferences towards a
healthier lifestyle, better fruit availability and variety, there is a
trend of increasing volume of fruit consumption in Russia. The volumes
of imports are rising; in 2002, Russia imported 2.4 million tons, in
2003 3.2 million tons, in 2004 3.74 million tons of fruits. Fruit trade
value in 2004 reached a record \$1.6 billion dollars, 40 percent more
than in 2003. While U.S. exports to Russia of fresh fruit are quite
small, at current growth rates, with aggressive marketing, it may become
a top-ten market in 2006. U.S. fresh fruit companies and trade
associations are exhibiting at World Food Moscow in September 2005.
www.eng.usda.ru

# Fresh Fruit Consumption

According to research from the Fruit and Vegetable Alliance, Russians'
favorite fruits are the following:

\- Apples (40 percent of Russians prefer an apple to other fruits);

\- Bananas (31 percent) and oranges (28 percent);

\- Grapes (22 percent) and pears (21 percent);

\- Apricots, peaches, watermelons, mandarins, grapefruits, lemons,
plums, pineapples and kiwifruits (7-18 percent);

\- Pineapple, mango, avocado (less than 4 percent).

[Berries]{.underline} are a traditional food in Russia. Strawberries,
raspberries, cranberries and red bilberries are very popular. Most
berries are picked in forests and small private orchards. Due to the
seasonal availability of these fruits they are growing in demand for
imports.

[Exotic fruits]{.underline} are not that common in Russia. About one
third of Russians report that they have tried an exotic fruit like
pineapple, avocado, litchis, carambola, papaya, or rambutan. According
to the World Trade Atlas, the total imports of exotic fruits
(pineapples, avocados, guavas, mangos) equals just 60,000 tons (10,000
more than 2003).

[Apples]{.underline} are the most popular fruit in Russia - 70-85
percent of Russians buy apples on regular basis. Russian consumers
normally eat green or yellow apple varieties and some believe they are
healthier than red ones. Most common Russian apple varieties are green.
Generally a Russian consumer prefers fruits of bigger sizes (70-80 mm).
Most apples consumed in Russia are grown in small private orchards. At
the same time, Russian production is not diversified in variety. With
the growth of consumer's incomes there is a strong growth in demand for
luxury apple varieties of consistent quality and big sizes.

As surveys show, around 79 percent of Russians consider domestic fruits
and vegetables safer than imports. The largest part of Russian apple
production can be consumed in just 4 months after the harvest. Still
there are some Russian fruits available on the market till May, but this
amount is not noticeable. The most popular Russian varieties are: Slava
Pobeditelyu, Prima, Antonovka, Semerenka (varieties are light green and
sour, some have a red side) and Beliy Naliv (very light green, sweet).
Most Russian apples on the market come from the Krasnodar region.

[Banana]{.underline} consumption is growing continually. In 2000, per
capita consumption of bananas was 2.5 kg, in 2001 it grew 36 percent, in
2002 --24 percent, in 2003 -- 31 percent. In 2004, it reached 6 kg. In
Eastern Europe the per capita annual consumption is 8-10 kg of bananas.

In 2004, Russia imported 870,000 tons of [citrus]{.underline}. Per
capita annual consumption is approximately 5.4 kg. The growth of
consumption in this sector of fruit imports was 8 percent for oranges,
17 percent for tangerines, 6 percent for grapefruit, 24 percent for
lemons. These products come mainly from Turkey, Morocco, Argentina and
South Africa.

[Pears]{.underline}

Russia is one of the top pear importers in the world. Russia's pear
production is generally poor quality and is available on the market for
a short period of time. Last season, Russia imported 260,000 tons, a
record import volume. Argentina is the leading pear exporter to Russia
with 69,000 tons, followed by Belgium with 58,000 tons and China with
29,000 tons. Pear imports are growing quickly from Chile, Uzbekistan,
and the USA. Chinese pears have an increasing presence in Russia and
will become more popular. During the past season, Chinese pears have
become an ordinary sight in Moscow and St. Petersburg supermarkets,
stores and traditional markets.

####### Grapes

Most grapes are consumed in Russia at the end of the summer, when former
Soviet Union republics such as Uzbekistan (260,000 tons imported in
2004), Kazakhstan (6,000 tons) and Tajikistan (6,000 tons) supply the
Russian market with fresh grapes. Russia also grows grapes, although
most are processed into wine. Approximately 40,000 tons of Russia\'s
grape crop is consumed fresh. Approximately one-third of the crop
annually is lost due to inadequate storage, cooling and transportation
facilities.

Russia is a major destination for China\'s fresh grapes but those grapes
are probably being transported across the border in the eastern and
central parts of Russia and are not making their way into the Moscow/St.
Petersburg markets.

# Marketing

Fruits are not strongly marketed in Russia. The only marketing
activities happen in a limited number of stores. Common retail marketing
methods for fruits and vegetables in retail is merchandising (separate
displays, power-zones, shelf trays), seasonal sales, internal radio
announcements, "SALE", or "BARGAIN" signs. All these marketing tools are
modest compared to other departments in a retail outlet (alcohol,
snacks, confectionery, meat departments).

Retailers' leaflets that are distributed in the shop itself, delivered
to customer's homes and distributed on the streets usually do have
information on several items from the fruit/ vegetable department, but
normally they simply advertise a fruit without mentioning or including
the brand name or logo. Usually, such activities are organized by the
managers of the outlet to make the Fruit and Vegetable Department look
more interesting.

According to research by one Russian retailer, Russian consumers tend to
buy unknown products when they see an advertisement action (40 percent),
a new product (24 percent), a sale (13 percent), an interesting package
(10 percent), or a friend's advice (5 percent). Advertising in stores
does not often happen in fruit departments, even though there are great
opportunities to increase the volume of sales. One fruit department
manager claims that just internal radio announcements and advertisement
in the department helped increase sales of fresh table grapes by 4-5
times in a week.

So far, there is almost no brand awareness in the fruit sector. Very
often fruits of one country of origin are sold under another origin
sign. For instance, the sticker on the apple may say one country; the
price tag would say another country. Besides, shop assistants often
misinform customers about country of origin. Most probably they do so
because they can't identify the country themselves. Brand awareness
varies by region, according to reports, the Russian Far East is aware of
quality in U.S. brands against competitors.

## 

# New Trends

In April, May, and June 2005 the GDP of the Russian Federation grew 6
percent. According to the Ministry of Economic Development and Trade,
this growth was mainly caused by the growth in such areas as retail
(11.3 percent growth in the first half-year 2005), travel and tourism
(growth of 20.9 percent) and HRI sector (the popularity of dining out
rose 14.4 percent).

More and more, people in Russia try to live a healthy lifestyle. There
are more than 200 fitness clubs in Moscow, and about 160 in St.
Petersburg. Their numbers grow rapidly. Many new fitness centers are
located in the same building as supermarkets. Most fitness clubs promote
healthy cuisine through the menus of their cafes. There are no such
programs as U.S. or European "5 a-day" promotions, but it will appear in
the near future.

By 2010, conditions will be created in Russia for the formation of a
broad middle class, which will include people with incomes six times
greater than the subsistence minimum. The percentage of such middle
class people could raise to about 20 to 50 percent of the population,
says a draft program for Russia\'s social and economic development in
2005-2008, published by the Economy Ministry. The strengthening of the
middle class will help increase the effective consumer demand and
stimulate growth in fruit consumption.

Russian ports

Russia has 3 major sea points where fruits enter the market: St.
Petersburg, Novorossiysk and Vladivostok. Novorossiysk Port is located
on the Black Sea and specializes in industrial goods trade. It also
works with refrigerated vessels. The main fruits coming to Russia
through the Novorossiysk Port are citrus from Turkey, Egypt and from
countries of the Mediterranean.

Vladivostok is the main port that supplies the eastern part of Russia.
According to Port management, the turnover of the Vladivostok Port in
2005 (January -- June) was around 4 million tons of cargoes, which
exceeded last year by 2.1 percent. Vladivostok port is a gateway for
Asian and American fruits.

The Greater Port of St. Petersburg is the second largest commercial port
in Russia after the Novorossiysk commercial port. In 2004 the turn over
of the St. Petersburg Port was 51.18 million tons, which is 21.7 percent
more than in 2003. Roughly 75 percent of Russian food imports comes
through this port.

The Port's berths accommodate vessels of more than 75,000 thousand tons
displacement and drafts up to 11 meters. For bigger vessels coming from
Argentina, Chile, USA and South Africa fruits are transferred in Germany
(Hamburg, Bremen, Rostok), Holland (Amsterdam, Rotterdam), and Belgium
(Antwerp) ports.

The St. Petersburg Port consists of more than 30 stevedoring companies
and organizations, which render services. The Greater Port of St.
Petersburg belongs to the Russian government. The stevedoring companies
rent its berths (there are 100 berths in the port) for 49 years. It
takes 3-4 days to unload a 6,000 ton vessel.

Despite significant investments in port infrastructure undertaken in the
past five years, the constraining factor for expansion of Russia's
foreign trade continues to be the lagging improvement of rail and road
links, warehousing capabilities, lack of rolling stock and sea vessels.

The Greater Port has 1200 refrigerator sockets. During the summer of
2005 the Greater Port of St. Petersburg faced overstocking because of
the lack of storing facilities and noticeable increase in imports of
fresh fruits from Argentina (imports of apples increased 47 percent,
grapes 72 percent, pears 31 percent). JSC Sea Port of St. Petersburg
(the leading port operator in the Greater Port of St. Petersburg) plans
to build a new fruit terminal with the capacity of 1.5 million tons.

Table 1 presents comparison of fruit imports arriving to Russia through
the Greater Port of St. Petersburg and total Russian fruit imports.

## Table 1. Fruit imports. Baltic customs fruit imports versa all-Russia fruit imports.

+------------+----------+------+---------+---------+---------+---+------+
| **Apples** |          |      |         |         |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| **Country  | Baltic   |      |         | **All   |         |   |      |
| of         | Customs  |      |         | -Russia |         |   |      |
| Origin**   | import   |      |         | import  |         |   |      |
|            | sta      |      |         | statis  |         |   |      |
|            | tistics, |      |         | tics,** |         |   |      |
|            |          |      |         |         |         |   |      |
|            | Metric   |      |         | *       |         |   |      |
|            | tons     |      |         | *Metric |         |   |      |
|            |          |      |         | tons**  |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
|            | 2002     | 2003 | 2004    | *       | *       |   | **20 |
|            |          |      |         | *2002** | *2003** |   | 04** |
+------------+----------+------+---------+---------+---------+---+------+
| Argentina  | 34 326   | 52   | 46 273  | **3     | **5     |   | **   |
|            |          |  996 |         | 4 499** | 2 398** |   | 46 3 |
|            |          |      |         |         |         |   | 45** |
+------------+----------+------+---------+---------+---------+---+------+
| Belgium    | 6 323    | 5    | 2 671   | **1     | **2     |   | **   |
|            |          |  187 |         | 9 766** | 1 961** |   | 14 3 |
|            |          |      |         |         |         |   | 61** |
+------------+----------+------+---------+---------+---------+---+------+
| Chile      | 6 781    | 14   | 36 912  | **      | **1     |   | **   |
|            |          |  983 |         | 7 347** | 6 823** |   | 37 5 |
|            |          |      |         |         |         |   | 77** |
+------------+----------+------+---------+---------+---------+---+------+
| China      | 380      | 1    | 3 549   | **6     | **9     |   | **1  |
|            |          |  372 |         | 7 597** | 4 767** |   | 07 5 |
|            |          |      |         |         |         |   | 14** |
+------------+----------+------+---------+---------+---------+---+------+
| France     | 21 608   | 13   | 11 881  | **4     | **3     |   | **   |
|            |          |  955 |         | 5 288** | 9 387** |   | 27 1 |
|            |          |      |         |         |         |   | 87** |
+------------+----------+------+---------+---------+---------+---+------+
| Germany    | 4 516    | 1    | 3 809   | **      | **      |   | *    |
|            |          |  745 |         | 5 744** | 3 781** |   | *5 2 |
|            |          |      |         |         |         |   | 27** |
+------------+----------+------+---------+---------+---------+---+------+
| Italy      | 9 030    | 6    | 3 997   | **2     | **2     |   | **   |
|            |          |  105 |         | 6 063** | 6 918** |   | 16 6 |
|            |          |      |         |         |         |   | 49** |
+------------+----------+------+---------+---------+---------+---+------+
| South      | 3 967    | 9    | 7 639   | **      | **1     |   | *    |
| Africa     |          |  710 |         | 5 101** | 0 508** |   | *8 5 |
|            |          |      |         |         |         |   | 46** |
+------------+----------+------+---------+---------+---------+---+------+
| Spain      | 279      | 1    | 577     | **828** | **      |   | *    |
|            |          |  401 |         |         | 2 409** |   | *1 4 |
|            |          |      |         |         |         |   | 47** |
+------------+----------+------+---------+---------+---------+---+------+
| USA        | 86       | 446  | 824     | **      | **      |   | *    |
|            |          |      |         | 3 278** | 1 437** |   | *2 1 |
|            |          |      |         |         |         |   | 66** |
+------------+----------+------+---------+---------+---------+---+------+
| **Grapes** |          |      |         |         |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| **Country  | Baltic   |      |         | **All   |         |   |      |
| of         | Customs  |      |         | -Russia |         |   |      |
| Origin**   | import   |      |         | import  |         |   |      |
|            | sta      |      |         | statis  |         |   |      |
|            | tistics, |      |         | tics,** |         |   |      |
|            |          |      |         |         |         |   |      |
|            | Metric   |      |         | *       |         |   |      |
|            | tons     |      |         | *Metric |         |   |      |
|            |          |      |         | tons**  |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| Argentina  | 1 468    | 3    | 5 617   | **      | **      | * |      |
|            |          |  001 |         | 1,509** | 3 100** | * |      |
|            |          |      |         |         |         | 5 |      |
|            |          |      |         |         |         |   |      |
|            |          |      |         |         |         | 7 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | * |      |
|            |          |      |         |         |         | * |      |
+------------+----------+------+---------+---------+---------+---+------+
| Brazil     | 74       | 84   | 217     | **228** | **416** | * |      |
|            |          |      |         |         |         | * |      |
|            |          |      |         |         |         | 4 |      |
|            |          |      |         |         |         | 4 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | * |      |
|            |          |      |         |         |         | * |      |
+------------+----------+------+---------+---------+---------+---+------+
| Chile      | 2 644    | 7    | 15 0225 | **      | **1     | * |      |
|            |          |  934 |         | 6 000** | 1 600** | * |      |
|            |          |      |         |         |         | 1 |      |
|            |          |      |         |         |         | 9 |      |
|            |          |      |         |         |         |   |      |
|            |          |      |         |         |         | 5 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | * |      |
|            |          |      |         |         |         | * |      |
+------------+----------+------+---------+---------+---------+---+------+
| Italy      | 470      | 565  | 147     | **1     | **2     | * |      |
|            |          |      |         | 9 400** | 0 800** | * |      |
|            |          |      |         |         |         | 1 |      |
|            |          |      |         |         |         | 7 |      |
|            |          |      |         |         |         |   |      |
|            |          |      |         |         |         | 1 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | * |      |
|            |          |      |         |         |         | * |      |
+------------+----------+------+---------+---------+---------+---+------+
| South      | 1 678    | 2    | 4 753   | **      | **      | * |      |
| Africa     |          |  574 |         | 4 500** | 7 300** | * |      |
|            |          |      |         |         |         | 9 |      |
|            |          |      |         |         |         |   |      |
|            |          |      |         |         |         | 8 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | * |      |
|            |          |      |         |         |         | * |      |
+------------+----------+------+---------+---------+---------+---+------+
| Spain      | 237      | 212  | 3 500   | **      | **      | * |      |
|            |          |      |         | 1 800** | 3 100** | * |      |
|            |          |      |         |         |         | 3 |      |
|            |          |      |         |         |         |   |      |
|            |          |      |         |         |         | 5 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | 0 |      |
|            |          |      |         |         |         | * |      |
|            |          |      |         |         |         | * |      |
+------------+----------+------+---------+---------+---------+---+------+
| USA        | 1.24     | 8.96 |         | **37**  | **176** |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| **Pears**  |          |      |         |         |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| **Country  | Baltic   |      |         | **All   |         |   |      |
| of         | Customs  |      |         | -Russia |         |   |      |
| Origin**   | import   |      |         | import  |         |   |      |
|            | sta      |      |         | statis  |         |   |      |
|            | tistics, |      |         | tics,** |         |   |      |
|            |          |      |         |         |         |   |      |
|            | Metric   |      |         | *       |         |   |      |
|            | tons     |      |         | *Metric |         |   |      |
|            |          |      |         | tons**  |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| Argentina  | 41 371   | 64   | 68 918  | **4     | **6     |   | **   |
|            |          |  473 |         | 1 800** | 3 213** |   | 69 2 |
|            |          |      |         |         |         |   | 40** |
+------------+----------+------+---------+---------+---------+---+------+
| Belgium    | 4 740    | 4    | 10 726  | **2     | **3     |   | **   |
|            |          |  325 |         | 4 900** | 1 500** |   | 58 0 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| Chile      | 6 704    | 2    | 7 750   | **      | **      |   | *    |
|            |          |  060 |         | 7 000** | 2 400** |   | *8 3 |
|            |          |      |         |         |         |   | 50** |
+------------+----------+------+---------+---------+---------+---+------+
| China      | 1 988    | 6    | 2 659   | **2     | **3     |   | **   |
|            |          |  041 |         | 3 200** | 6 500** |   | 29 3 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| France     | 2 780    | 2    | 2 904   | **1     | **1     |   | **   |
|            |          |  135 |         | 2 400** | 0 600** |   | 14 6 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| Italy      | 350      | 84   | 187     | **      | **      |   | *    |
|            |          |      |         | 2 700** | 1 250** |   | *1 2 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| The        | 5 927    | 8    | 11 185  | **1     | **2     |   | **   |
| N          |          |  293 |         | 1 700** | 0 000** |   | 26 0 |
| etherlands |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| Portugal   | 6 817    | 2    | 2 276   | **      | **      |   | *    |
|            |          |  575 |         | 7 700** | 3 500** |   | *3 6 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| South      | 4 278    | 6    | 9 045   | **      | **      |   | **   |
| Africa     |          |  374 |         | 5 400** | 8 100** |   | 11 2 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| Spain      | 4 815    | 5    | 4 884   | **1     | **1     |   | *    |
|            |          |  946 |         | 0 800** | 1 700** |   | *9 5 |
|            |          |      |         |         |         |   | 40** |
+------------+----------+------+---------+---------+---------+---+------+
| USA        | 48       | 339  | 1 049   | **701** | **      |   | *    |
|            |          |      |         |         | 1 400** |   | *2 7 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| **Gr       |          |      |         |         |         |   |      |
| apefruit** |          |      |         |         |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| **Country  | Baltic   |      |         | **All   |         |   |      |
| of         | Customs  |      |         | -Russia |         |   |      |
| Origin**   | import   |      |         | import  |         |   |      |
|            | sta      |      |         | statis  |         |   |      |
|            | tistics, |      |         | tics,** |         |   |      |
|            |          |      |         |         |         |   |      |
|            | Metric   |      |         | *       |         |   |      |
|            | tons     |      |         | *Metric |         |   |      |
|            |          |      |         | tons**  |         |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| Argentina  | 1 835    | 1    | 3 278   | **      | **      |   | 3    |
|            |          |  385 |         | 1 890** | 1 600** |   |  400 |
+------------+----------+------+---------+---------+---------+---+------+
| Israel     | 1 141    | 108  | 248     | **      | **      |   | **   |
|            |          |      |         | 7 160** | 7 600** |   | 11 0 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| Morocco    | 37       | 73   |         | **3     | **10    |   |      |
|            |          |      |         | 8 800** | 8 000** |   |      |
+------------+----------+------+---------+---------+---------+---+------+
| South      | 1 618    | 3    | 4 566   | **      | **      |   | *    |
| Africa     |          |  239 |         | 2 320** | 3 960** |   | *6 6 |
|            |          |      |         |         |         |   | 90** |
+------------+----------+------+---------+---------+---------+---+------+
| Zimbabwe   | 100      | 160  | 134     | **100** | **292** |   | **1  |
|            |          |      |         |         |         |   | 44** |
+------------+----------+------+---------+---------+---------+---+------+
| Spain      | 4        | 76   | 387     | **500** | **167** |   | **7  |
|            |          |      |         |         |         |   | 13** |
+------------+----------+------+---------+---------+---------+---+------+
| Swaziland  | 55       | 31   | 48      | **96**  | **53**  |   | **   |
|            |          |      |         |         |         |   | 58** |
+------------+----------+------+---------+---------+---------+---+------+
| Thailand   | 1        | 0    | 1       | **1**   | **1**   |   | **   |
|            |          |      |         |         |         |   | 23** |
+------------+----------+------+---------+---------+---------+---+------+
| Turkey     | 594      | 27   | 20      | **2     | **1     |   | **   |
|            |          |      |         | 0 600** | 8 000** |   | 23 3 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| USA        | 2        | 0    | 7       | **2**   | **1     |   | **   |
|            |          |      |         |         | 2 000** |   | 34 0 |
|            |          |      |         |         |         |   | 00** |
+------------+----------+------+---------+---------+---------+---+------+
| Uruguay    | 99       | 22   | 4       | **99**  | **22**  |   | *    |
|            |          |      |         |         |         |   | *4** |
+------------+----------+------+---------+---------+---------+---+------+

Source: the Baltic customs, World Trade Atlas

## Figure 1. Distribution Channel for supermarkets. Import of transatlantic fruits (from USA, Argentina, Chile etc.) via the Greater Port of St. Petersburg.

The ports of the Baltic countries (port of Tallinn, Ventspils, Klajpeda,
Riga) and Finland are the primary competitors to the St. Petersburg
Port. Their competitive advantage is based on several factors, including
modern port facilities and easy access for ocean-type vessels with
maximum draft, the ability to process cargo quickly and with fewer
headaches at customs and clearance. Considerable consignments of fruits
arrive to Russia by truck from Europe (the Netherlands, Poland, Spain).

# Russian fruit importers

Consumer demand in Russia is still met mainly by imports. In 2004,
Russian fresh fruits import equaled 3.7 million tons (18 percent more
than in 2003). The stable growth of fresh produce sales has continued
since 1998 and is forecast to be 10 percent each year afterwards. The
volume of official direct fruit import from the United States may be
much higher than official statistics, as much as 45-50 percent taking
into consideration the fruit volumes transshipped to Russia from Europe
(the Netherlands) by vessels and trucks.

The leading fruit importers that supply western Russia are located in
St. Petersburg. There are around 50 companies in the market and St.
Petersburg importers have a bigger turnover than Moscow and Vladivostok
importers.

Please contact <ATOMoscow@usda.gov> for more information on how to
acquire updated lists of Russia's fruit importers.

Russian importers of fruits and vegetables are not united under any
association.

Russian importers exhibit and attend major fruits trade shows: Fruit
Logistica, BioFach, Asiafruit congress, Alimentaria, the FMS Show,
Macfrut, CPMA, FRESH, World Food, AGF Total, Middle East Congress, PMA,
Anuga, Southern Hemisphere Congress. Of these, Fruit Logistica is the
favored overseas stop of Russia's fruit importers. In Russia, they visit
or attend the major Russian food industry trade show \-- World Food,
held each September in Moscow.

Being held annually since 1992, the largest international autumn food
shows, World Food has a Fruit Pavilion of U.S. companies and
associations organized by the ATO office.

## Retail

In Russia fruits are sold through:

## 

## Retail chains

Russia today is the world\'s fastest growing food retail market. The
retail sector has been responsible for 19 percent of all foreign direct
investment flowing into the country.

The past five years have demonstrated drastic changes in the development
of the retail sector in Russia. The key trends in Russian retail during
this period included the introduction of new modern formats and their
incredibly fast development, the regional expansion of the newly
established local chains, application of modern logistics, and the great
interest of foreign retailers in the Russian market.

The largest Russian retailers originated in Moscow and then gradually
expanded to St. Petersburg and other Russian large cities in the
regions, except for Pyat'erochka, which has its headquarters in St.
Petersburg. Some regional chains, such as Lenta and O'Key are located
only in St. Petersburg, but are very rapidly developing, although they
are not making efforts to enter the Moscow market but are competing with
Moscow-based and western chains and, like in case of Lenta, leading in
their own city.

## Table 2. Main Moscow food/non-food retailers 

  -------------- -------------- --------------- -------------- ---------------
  Chain          Year of market No of outlets   Turnover in    Format
                 entrance                       2004           

  Metro AG       1999           14              \-             Hypermarket

  Auchan         2002           3               \-             hypermarket

  Perekrestok    1999           3               \-             hypermarket

  Pyaterochka    1999           Approximately   \$1.4 bln      economy
                                500                            

  Perekrestok    1995           150             \$ 0.75 bln    supermarkets,
                                                               discounters

  Ramstore       1997           50              \$ 0.5 bln     supermarket,
                                                               hypermarket

  Seventh        1994           78              \-             supermarket
  Continent                                                    

  Kopeika        1998           Over 50         \$ 0.25 bln    discounter

  Diksi          1999           60              \$ 0.15 bln    discounter

  Paterson       1997           45              \$ 0.25 bln    supermarket
  -------------- -------------- --------------- -------------- ---------------

The biggest retail chains in Vladivostok are Ratimir, Lakomka, DRK and
Sfera. Hypermarkets are Parus and V-Lazer.

Supermarkets, hypermarkets and convenience stores still only account for
10 percent of retail food sales in the country, and 20 percent in
Moscow. The amount of fruits sold through new modern format shops is
increasing.

Most retail chains in Russia understand that consumers judge the outlet
by the quality of the fruit and vegetable department. The freshness of
products and modern displays play a big role in consumer's attitude.
Some supermarkets and hypermarkets locate fruit departments near the
entrance, so that this department is the first one for consumers to
enter. Retailers are very careful about the equipment (furniture,
lighting systems) that is located in fruit and vegetable departments.

The shops in Russia do not pre-pack fruits and vegetables but prefer to
receive this service from the suppliers. Suppliers pre-pack fruits, and
put brand name labels and stickers on the package. The average number of
fruit and vegetable suppliers to the retailer chain is 20-30 suppliers.

### 

## Grocery markets

The Soviet era left behind many large enclosed vendor markets which at
one time were for elite shopping with fresh fruits, vegetables, meat and
fish, dairy products and spices available all year round. Many have been
renovated and are wonderful, and fun places to shop. The sales area of
such markets is approximately 2,500 sq. m. The store consists of
numerous shopping counters with talkative merchants that customers can
bargain with, and taste any product they want. Some have unique
architecture and all offer well lighted facilities and beautiful food
choices.

There are around 30 such markets in St. Petersburg, more than 50 in
Moscow and each Russian city, no matter how small it is, has such a
grocery market.

In St. Petersburg such markets are popular among various groups of
people. Many well-off people prefer to purchase fruits, vegetable, meat
here rather than in retail chains, as this is the place where you can
choose fruits yourself, have your own merchant, get products that are
great quality. Many pensioners like these markets as at the end of the
day they can buy high-quality food with discount. Markets claim to sell
products coming from the South of Russia, Uzbekistan, Azerbaijan,
Armenia and Georgia, but it is usually wrong and the products are
imported from outside the CIS.

Usually, prices and quality of these markets are higher than the ones in
retail chains. You never see price tags in such places. One needs to
haggle with the merchant to learn the price.

## Open-markets established in 90's

Such markets appeared in Russia less than 10 years ago during the era of
chaotic business. These are the markets that sell cheap. They all are
open markets and work all year round. In summer fruits are sold in the
open air, and in winter they move indoors. Such open markets mainly sell
products with CIS origin. A noticeable percentage of Russians shop here.

## Fruit vegetable kiosks (only summer time) 

Such stands are very popular among citizens of St. Petersburg. They work
4-5 months from late spring till early fall. The product variety at such
stands is around 20-30 items of fruits and vegetables. They are more
expensive than open markets, but the location is so comfortable for
consumers that this business is quite profitable.

All fruits available on the St. Petersburg market come from Sofiyskaya,
Kalininskaya, Vyborgskaya and Gatchinskaya warehouses. In Moscow fruits
and vegetables are stored and sold in Novie Cheremushki, Kuibishevskaya
and Zamoskvoretskaya warehouses.

# Customs duties and fees on fruit

Tariff rates for apples vary depending of the season to protect domestic
production. Tariff rates on apples are counted as duty per kilogram.
From January 1 to July 31 the rate is EURO 0.1 per kilogram. From August
1 to December 31 it is EURO 0.2 per kilogram.

For other fruits, the tariff rate is counted as a percentage of dutiable
value. For pears and grapes it is 5 percent of dutiable cost. For
grapefruit the custom duty is also counted as 5 percent of dutiable
cost, but not less than EURO 0.02 per kilo.

For more information on tariff rates, import procedures and labeling
requirements see Attache report GAIN RS5026.

Subject to an International agreement, developing countries such as
Argentina get 25 percent off the custom duty.

According to the Baltic customs, customs clearing cost is:

## Table 3. Cost of customs clearing. Data provided by the Baltic customs. 

  --------------------------- -------------------------------------------
  Customs clearing cost, EURO Dutiable Value

  14.4                        Cost up to EURO 5'747

  28.7                        EURO 5'748 -- EURO 12'931

  57.4                        EURO 12'931-- EURO 34'482

  158                         EURO 34'482 -- EURO 71'839

  215.5                       EURO 71'840 -- EURO 143'678

  575                         EURO 143'679 -- EURO 287'356

  1'440                       EURO 287'357 -- EURO 862'069

  2'900                       EURO 862'069 and above

                              
  --------------------------- -------------------------------------------

Total cost of customs payment is counted as a sum of customs duty,
eighteen percent VAT, and fee for customs clearing.

# Prices on fruit

According to retailers, Russian consumers are ready to buy fruits of
different price and quality. There is a growing segment of consumers
that is looking for luxurious fruits. Some retailers pack apples/pears
etc in especially nice wraps and sell them as "Elite fruit".

## 

## Table 4 Prices on fruits, Russia.

+------------+----------------------+------+-------+-----+----------+
| *          | **Location**         | **Da | **Ori | **  | **Price, |
| *Product** |                      | te** | gin** | Uni | rubles** |
|            |                      |      |       | t** |          |
+------------+----------------------+------+-------+-----+----------+
| **APPLES** |                      |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Antonovka  | St. Petersburg,      | 02.  | R     | Kg  | 25       |
|            | market               | 2005 | ussia |     |          |
+------------+----------------------+------+-------+-----+----------+
| Adored     | St. Petersburg,      | 02.  | \-    | Kg  | 35       |
|            | market               | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Boykin     | St. Petersburg,      | 02.  | Mol   | Kg  | 35       |
|            | market               | 2005 | davia |     |          |
+------------+----------------------+------+-------+-----+----------+
| Red        | St. Petersburg,      | 02.  | USA   | Kg  | 58.4     |
| Delicious  | supermarket          | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Jonagold   | St. Petersburg,      | 02.  |       | Kg  | 57.7     |
|            | supermarket          | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Granny     | St. Petersburg,      | 02.  | E     | Kg  | 48       |
| Smith      | market               | 2005 | urope |     |          |
+------------+----------------------+------+-------+-----+----------+
| Golden     | St. Petersburg,      | 02.  | Be    | Kg  | 46.5     |
| Delicious  | convenience store    | 2005 | lgium |     |          |
+------------+----------------------+------+-------+-----+----------+
| Red Chief  | St. Petersburg,      | 02.  | F     | Kg  | 35.3     |
|            | supermarket          | 2005 | rance |     |          |
+------------+----------------------+------+-------+-----+----------+
| Fuji       | St. Petersburg,      | 02.  |       | Kg  | 43.8     |
|            | supermarket          | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Slave      | St. Petersburg,      | 08.  | R     | Kg  | 23       |
| Pobeditelu | convenience store    | 2005 | ussia |     |          |
+------------+----------------------+------+-------+-----+----------+
| Golden Del | St. Petersburg,      | 08.  | S.    | Kg  | 55.3     |
|            | convenience store    | 2005 | A     |     |          |
|            |                      |      | frica |     |          |
+------------+----------------------+------+-------+-----+----------+
| Adored     | St. Petersburg,      | 08.  | \-    | Kg  | 31       |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Red chief  | St. Petersburg,      | 08.  | \-    | Kg  | 32       |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Granny     | Open Market, St.     | 08.  | Chile | Kg  | 35       |
| Smith      | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Fuji       | Open Market, St.     | 08.  | Su    | Kg  | 30       |
|            | Petersburg           | 2005 | nrise |     |          |
|            |                      |      | Red   |     |          |
+------------+----------------------+------+-------+-----+----------+
| Antonovka  | Open Market, St.     | 08.  | Mo    | Kg  | 26       |
|            | Petersburg           | 2005 | ldova |     |          |
+------------+----------------------+------+-------+-----+----------+
| **PEARS**  |                      |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| US Bosc    | Vladivostok          | 03.  | NW US | Kg  | 34.2     |
|            |                      | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| US Red     | Vladivostok          | 03.  | NW US | Kg  | 34.2     |
| Anjou      |                      | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| US Green   | Vladivostok          | 03.  | NW US | Kg  | 35       |
| AN         |                      | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Conference | Vladivostok          | 03.  | Be    | Kg  | 57       |
|            |                      | 2005 | lgium |     |          |
+------------+----------------------+------+-------+-----+----------+
| Abbat      | Vladivostok          | 03.  | Be    | Kg  | 50       |
|            |                      | 2005 | lgium |     |          |
+------------+----------------------+------+-------+-----+----------+
| Winter     | Vladivostok          | 03.  | China | Kg  | 16       |
|            |                      | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Gua Fei Li | Vladivostok          | 03.  | China | Kg  | 20       |
|            |                      | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Williams   | Moscow               | 03.  | Arge  | Kg  | 30       |
|            |                      | 2005 | ntina |     |          |
+------------+----------------------+------+-------+-----+----------+
| Anjou      | St. Petersburg,      | 09.  | Arge  | Kg  | 38       |
|            | convenience store    | 2005 | ntina |     |          |
+------------+----------------------+------+-------+-----+----------+
| Anjou      | St. Petersburg,      | 09.  | R     | Kg  | 34       |
|            | convenience store    | 2005 | ussia |     |          |
+------------+----------------------+------+-------+-----+----------+
| **CITRUS** |                      |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Grapefruit | Vladivostok          | 03.  | \-    | Kg  | \$2.8    |
|            |                      | 2005 |       |     |          |
|            | Supermarket          |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Grapefruit | St.Petersburg        | 08.  | C     | Kg  | 49       |
|            |                      | 2005 | itrus |     |          |
|            | Supermarket          |      | C     |     |          |
|            |                      |      | hange |     |          |
+------------+----------------------+------+-------+-----+----------+
| Grapefruit | Open Market, St.     | 08.  | Unif  | Kg  | 50       |
|            | Petersburg           | 2005 | rutti |     |          |
+------------+----------------------+------+-------+-----+----------+
| Pomelo     | St.Petersburg        | 08.  | \-    | Kg  | 103.5    |
|            |                      | 2005 |       |     |          |
|            | Supermarket          |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Orange     | St. Petersburg,      | 08.  | \-    | Kg  | 27.6     |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Orange     | Open Market, St.     | 08.  | South | Kg  | 36       |
|            | Petersburg           | 2005 | A     |     |          |
|            |                      |      | frica |     |          |
+------------+----------------------+------+-------+-----+----------+
| Lemon      | St. Petersburg,      | 08.  | \-    | Kg  | 29       |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Lemon      | Open Market, St.     | 08.  | \-    | U   | 8        |
|            | Petersburg           | 2005 |       | nit |          |
+------------+----------------------+------+-------+-----+----------+
| Lime       | St. Petersburg,      | 08.  | Costa | Kg  | 143      |
|            | convenience store    | 2005 | Rica  |     |          |
+------------+----------------------+------+-------+-----+----------+
| **GRAPES** |                      |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Red Globe  | St. Petersburg,      | 08.  | \-    | Kg  | 101      |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Grapes     | Open Market, St.     | 08.  | \-    | Kg  | 58       |
| (dark      | Petersburg           | 2005 |       |     |          |
| blue,      |                      |      |       |     |          |
| seedless)  |                      |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Dark blue, | Open Market, St.     | 08.  | \-    | Kg  | 52       |
| elongated  | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Muskat     | Open Market, St.     | 08.  | Italy | Kg  | 55       |
|            | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| **OTHER**  |                      |      |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Apricot    | St. Petersburg,      | 08.  | \-    | Kg  | 68       |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Apricot    | Open Market, St.     | 08.  | \-    | Kg  | 70       |
|            | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Plum       | Open Market, St.     | 08.  | \-    | Kg  | 35       |
|            | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Peach      | St. Petersburg,      | 08.  | \-    | Kg  | 71       |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Peach      | Open Market, St.     | 08.  | \-    | Kg  | 70       |
|            | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Peach      | Open Market, St.     | 08.  | \-    | Kg  | 55       |
|            | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Nectarine  | St. Petersburg,      | 08.  | \-    | Kg  | 63       |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Mango      | St. Petersburg,      | 08.  | \-    | Kg  | 43.7     |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Avocado    | St. Petersburg,      | 08.  | \-    | Kg  | 50       |
|            | convenience store    | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+
| Pineapple  | St. Petersburg,      | 08.  | \-    | U   | 123      |
|            | convenience store    | 2005 |       | nit |          |
+------------+----------------------+------+-------+-----+----------+
| Banana     | Open Market, St.     | 08.  | \-    | Kg  | 20       |
|            | Petersburg           | 2005 |       |     |          |
+------------+----------------------+------+-------+-----+----------+

Exchange rate USD 1= 28.3 rubles

# Production

The apple and pear crop is forecast up due to investment made in the
fruit industry during the past years. The main areas for investment are
around the cities of Krasnodar, Lipetsk, Volgograd and Voronezh.
Investments have been made in storage facilities and some old trees have
been substituted with new ones. New trees planted 3-4 years ago are
starting to bring on the market new varieties of apples and pears that
can be stored for longer periods of time. Still the process of growing,
picking, storing and delivering fruits to the consumer needs serious
modernization. Local producers will not be able to keep up with the
increase of demand for fruits in Russia. Still, most Russian apples and
pears are available on the market for a few months after the harvest.
Most Russian apples and pears are small sized fruits inconsistent in
quality. The production of apples and pears grew 20 percent in 2004 over
the 2003.

## 

## Table 5. Apples -- Area Planted, Harvested, Production and Yield, Main Producing Regions, MY 2004

  ------------------------- ---------- ----------- ------------ ---------
                            Planted    Harvested   Production   Yield

                            1000 ha    1000 ha     1000 tons    T/ha

  Russia                    416.9      353.1       1796.4       5.1

                                                                

  Central Federal District  181.1      158.2       663.9        4.2

  \- Bryansk                14.7       14.4        12.9         0.9

  \- Voronezh               27.1       23.7        90.2         3.8

  \- Kursk                  14.3       13.1        61.4         4.7

  \- Lipetsk                16.4       13.3        55.8         4.2

  \- Moscow                 10.3       10.3        54.4         5.3

  \- Orel                   14.6       11.8        45.3         3.8

  \- Tambov                 12.4       11.2        68.5         6.1

  \- Tula                   23.0       19.0        104.0        5.5

  Southern Federal District 99.0       80.1        454.6        5.7

  \- Krasnodar              27.0       19.7        138.3        7.0

  \- Volgograd              13.2       11.9        125.0        10.5

  \- Rostov                 16.6       13.8        37.2         2.7

  Volga Valley Federal      88.3       71.4        515.3        7.2
  District                                                      

  \- Tatarstan              9.7        5.9         38.3         6.5

  \- Samara                 14.7       12.3        126.9        10.4

  \- Saratov                12.7       11.6        135.9        11.7

  Ural Federal District     11.5       9.2         80.0         8.7

  Siberian Federal District 16.9       13.1        61.4         4.7

  Far East Federal District 2.7        2.0         9.8          4.9
  ------------------------- ---------- ----------- ------------ ---------

##  

## Table 6. Pears -- Area Planted, Harvested, Production and Yield, Main Producing Regions, MY 2004

  --------------------------- ---------- ----------- ------------ ---------
                              Planted    Harvested   Production   Yield

                              1000 ha    1000 ha     1000 tons    T/ha

  Russia                      65.3       51.2        335.9        6.6

                              19.8       17.0        93.4         5.5

  Central Federal District    0.8        0.8         0.8          1.0

  \- Bryansk                  4.8        4.2         16.2         3.9

  \- Voronezh                 2.5        2.3         10.8         4.7

  \- Kursk                    2.8        2.3         10.0         4.3

  \- Lipetsk                  0.6        0.6         2.9          5.1

  \- Moscow                   0.8        0.6         2.3          3.6

  \- Orel                     0.0        11.2        0.0          0.0

  \- Tambov                   1.2        0.9         5.3          5.6

  \- Tula                     24.2       19.4        111.4        5.7

  Southern Federal District   6.7        5.0         36.5         7.4

  \- Krasnodar                2.3        2.1         22.1         10.4

  \- Volgograd                4.2        3.5         10.1         2.9

  \- Rostov                   11.4       9.0         83.8         9.3

  Volga Valley Federal        1.7        1.1         6.6          6.1
  District                                                        

  \- Tatarstan                2.6        2.2         22.4         10.0

  \- Samara                   2.3        2.1         16.6         7.8

  \- Saratov                  0.6        0.5         8.2          17.4

  Ural Federal District       0.0        0.3         0.7          2.6

  Siberian Federal District   0.2        0.1         0.5          6.1

  Far East Federal District   65.3       51.2        335.9        6.6
  --------------------------- ---------- ----------- ------------ ---------

## Table 7. PSD, Apples

  ------------------- -------------- ---------- ---------- ------------ ---------- ----------
  **PSD Table**                                                                    

  **Country**         **Russian                                                    
                      Federation**                                                 

  **Commodity**       **Apples,                            (HA)(1000               
                      Fresh**                              TREES)(MT)              

                      2003           Revised    2004       Estimate     2005       Forecast

                      USDA Official  Post       USDA       Post         USDA       Post
                      \[Old\]        Estimate   Official   Estimate     Official   Estimate
                                     \[New\]    \[Old\]    \[New\]      \[Old\]    \[New\]

  **Market Year                      07/2003               07/2004                 07/2005
  Begin**                                                                          

  Area Planted        422200         422200     420000     416000       0          413000

  Area Harvested      357900         357900     35700      353100       0          349000

  Bearing Trees       135000         135000     134900     133000       0          132000

  Non-Bearing Trees   26000          26000      26000      26000        0          26000

  Total Trees         161000         161000     160900     159000       0          158000

  Commercial          1143800        1143800    1100000    1386400      0          1276000
  Production                                                                       

  Non-Comm.           345000         345000     400000     410000       0          384000
  Production                                                                       

  TOTAL Production    1488800        1488800    1500000    1796400      0          1860000

  TOTAL Imports       689000         714236     680000     870234       0          1180 000

  TOTAL SUPPLY        2177800        2177800    2180000    2666634      0          2840000

  Domestic Fresh      925000         925000     920000     1256634      0          1365000
  Consump                                                                          

  Exports, Fresh Only 1885           1885       1000       1000         0          900

  For Processing      1236800        1236800    1245000    1395000      0          1450000

  Withdrawal From     14115          14115      14000      14000        0          24100
  Market                                                                           

  TOTAL UTILIZATION   2177800        2177800    2180000    2666634      0          2840000
  ------------------- -------------- ---------- ---------- ------------ ---------- ----------

## Table 8. PSD, Pears

  ------------------- -------------- ---------- ---------- ------------ ---------- ----------
  **PSD Table**                                                                    

  **Country**         **Russian                                                    
                      Federation**                                                 

  **Commodity**       **Pears,                             (HA)(1000               
                      Fresh**                              TREES)(MT)              

                      2003           Revised    2004       Estimate     2005       Forecast

                      USDA Official  Post       USDA       Post         USDA       Post
                      \[Old\]        Estimate   Official   Estimate     Official   Estimate
                                     \[New\]    \[Old\]    \[New\]      \[Old\]    \[New\]

  **Market Year                      07/2003               07/2004                 07/2005
  Begin**                                                                          

  Area Planted        69100          69100      68500      65300        0          65000

  Area Harvested      54300          54300      53800      51200        0          51000

  Bearing Trees       17300          17300      17000      16300        0          16000

  Non-Bearing Trees   10100          10100      10100      9700         0          9500

  Total Trees         27400          27400      27100      26000        0          25500

  Commercial          113000         113000     95000      136000       0          130000
  Production                                                                       

  Non-Comm.           165400         165400     140000     200000       0          190000
  Production                                                                       

  TOTAL Production    278400         278400     235000     336000       0          330000

  TOTAL Imports       226000         226000     235000     297000       0          371000

  TOTAL SUPPLY        504400         504400     470000     633000       0          691000

  Domestic Fresh      335500         335500     333000     446500       0          521000
  Consump                                                                          

  Exports, Fresh Only 41             41         50         60           0          50

  For Processing      160169         160169     130000     177000       0          160000

  Withdrawal From     8690           8690       6950       9440         0          9950
  Market                                                                           

  TOTAL UTILIZATION   504400         504400     470000     633000       0          691000
  ------------------- -------------- ---------- ---------- ------------ ---------- ----------

## 

## Table 9. Prices of Imported Apples

  ------------------------ ------------ -- --------------- -----------------
  **Prices Table**                                         

  **Country**              Russian                         
                           Federation                      

  **Commodity**            Apples,                         
                           Fresh                           

  Prices in                US Dollar       Per             Metric Ton

                                                           

  Year                     2003            2004            \% Change

  Jan                      302             310             3%

  Feb                      302             304             1%

  Mar                      299             304             2%

  Apr                      310             334             8%

  May                      328             362             10%

  Jun                      339             373             10%

  Jul                      361             391             8%

  Aug                      387             350             -10%

  Sep                      344             344             0%

  Oct                      324             341             5%

  Nov                      332             352             6%

  Dec                      333             371             11%
  ------------------------ ------------ -- --------------- -----------------

## 

## Table 10. Prices of Imported Pears

+-----------------------+-------------+-------------+------------------+
| **Prices Table**      |             |             |                  |
+-----------------------+-------------+-------------+------------------+
| ###### **C            | Russian     |             |                  |
| ountry** {#country-1} | Federation  |             |                  |
+-----------------------+-------------+-------------+------------------+
| **Commodity**         | Pears,      |             |                  |
|                       | Fresh       |             |                  |
+-----------------------+-------------+-------------+------------------+
| Prices in             | US Dollar   | Per         | Metric Ton       |
+-----------------------+-------------+-------------+------------------+
|                       |             |             |                  |
+-----------------------+-------------+-------------+------------------+
| Year                  | 2003        | 2004        | \% Change        |
+-----------------------+-------------+-------------+------------------+
| Jan                   | 334         | 351         | 5%               |
+-----------------------+-------------+-------------+------------------+
| Feb                   | 344         | 374         | 9%               |
+-----------------------+-------------+-------------+------------------+
| Mar                   | 364         | 383         | 5%               |
+-----------------------+-------------+-------------+------------------+
| Apr                   | 364         | 384         | 5%               |
+-----------------------+-------------+-------------+------------------+
| May                   | 370         | 401         | 8%               |
+-----------------------+-------------+-------------+------------------+
| Jun                   | 375         | 401         | 7%               |
+-----------------------+-------------+-------------+------------------+
| Jul                   | 371         | 412         | 11%              |
+-----------------------+-------------+-------------+------------------+
| Aug                   | 386         | 432         | 12%              |
+-----------------------+-------------+-------------+------------------+
| Sep                   | 362         | 422         | 17%              |
+-----------------------+-------------+-------------+------------------+
| Oct                   | 352         | 433         | 23%              |
+-----------------------+-------------+-------------+------------------+
| Nov                   | 357         | 424         | 19%              |
+-----------------------+-------------+-------------+------------------+
| Dec                   | 352         | 444         | 26%              |
+-----------------------+-------------+-------------+------------------+