Russia: Volume of tea supplies from India is growing

Tea supplies in Russia will be increased up to 41,25 m. kg in 2007 from 33 m. kg last year, according to Basudeb Banerjee, chairman of Tea Council of India. Exporters hope that they will manage to stabilize the situation with tea exports due to the Russian market: volume of supplies from the country, which is the largest tea exporter after China, went down by 19,3% to 86,03 m. kg in the 1st quarter. Sales increased by 22% in Russia in the specified period as compared with the previous year, having reached 18 m. kg.

(CoffeeTea, 17.10.07)

Russia: Groceries production in the 1st half year

Production of macaroni products in Russia went down by 6,2% in January-June, 2007 as compared with the similar period of the last year amounting to 488,4 ths. t, according to Rosstat.

Food concentrates output went down by 17,4% up to 30,3 ths. t, bakery yeast by 2,8% up to 50,7 ths. t, flour by 4,5% up to 4,734 m. t, groats by 3,6% up to 488,8 ths. t.

(Food industry, 2007, issue 9)

Russia: Snacks market rate of growth decreases

According to expert estimates, the Russian snack market starts to decrease the rate of growth. According to the data of ACNielsen, snack market capacity in 2006 was 1 million tons, having exceeded 1.4 billion USD in money terms.

Croutons market growth reached 10% in volume terms and 7% — in value terms. These figures were in 2005 twice as high — 18% and 15%, respectively.

On the competitive market, the only remaining ways to increase market share for producers of snacks are mergers and take-overs. The leaders, «Bridgetown Foods» and «Sibirsky Bereg», have already announced about their plans to buy smaller players.

About 100 small producers of snack products operate now in the market. «Meridian Plus», one of five largest snack market players, noted that в depending on the occupied market share and existence of own production facilities, the value of smaller players may be 1-5 million USD.

(Kommersant, 19 March, 2007, p.19)

Russia: Healthy products market volume is 1 billion USD

According to estimates of ACNielsen, the number of people who worry about healthy food grows in Russia.

The healthy life-style in Russia is a new fashion, which is followed by the most active audience consisting of urban consumers with high spending power.

The market of healthy and organic products in Russia only started to be formed. Even now Russian people spend on buying healthy products about 1 billion USD per annum, the market rate of growth is 10-12%.

(Profile, March, 2007, issue 9 p.46)

Russia: Romir on retail turnover in 2006

According to Romir Monitoring research holding preliminary estimate, the retail turnover in Russia in 2006 amounted to 8.5 trillion RUR, which is higher by 21% in comparison with 2005.

The real turnover (в товарной массе) increased by 11%. The real income of population increased simultaneously by 10-11%.

The retail turnover per capita reached 2.2 thousand USD per annum or 4,950 thousand RUR per month.

(Sostav.ru, 21.02.07)

Russia: Tea duty was abolished for the period of 9 months

The zero import duty on tea (both black and green) will be effective in Russia within the period of 9 months, starting from February 23 of the current year.

The respective Government Regulation was adopted on January 18, 2007.

The import duty amounted previously to 5%.

(Logistic.ru, 22.02.07)

The world: International Grains Council increased its forecast for this year

The International Grains Council (IGC, London) increased once again its forecast of the world grains production for this crop year (from July 1, 2006 to June 30, 2007).

It is reported at the Council’s monthly review that the February grain crop forecast was increased up to 1559 million t as against 1557 million t forecasted at the end of January.

The world grain trade forecast was increased up to 214 million t, which is larger by 2 million t than the same last year. The forecasted grain consumption volume is 1626 million t, which exceeds the January forecast by 1 million t, the carry-over stock is 241 million t as against 239 million t forecasted in January.

(Interfax, 27.02.07)

Russia: Food market grew by 11% during the year

According to the data of ACNielsen, the Russian food market grew during the year by 11% in value terms.

The most considerable growth was registered in such categories as ready dishes (+41%), baby beverages (+33%), pastry (+27%), drinking yoghurt (+25%), baby food (+19%).

The base cookery products (vegetable oils, spices, seasonings, salt, etc.) segment grew by 13% owing to different seasonings sales growth.

(Yarmarka, 13.02.07)

Russia: Import of tropical oils decreased by 14%

Total volume of imports of tropical oils to Russia in September-December of the marketing year 2006/2007 was 223.3 thousand tons, which is lower by 14.1% than similar figure for the first four months of the marketing year 2005/2006.

At the same time, imports of palm oil decreased by 16.8% in comparison with September-December, 2005, down to 173.5 thousand tons, the same for palm-kernel oil decreased nearly twofold, down to 8.4 thousand tons. The volume of coconut oil imports increased by 14.7% up to 41.4 thousand tons.

(Maslo.org, 30.01.07)

Indonesia: Palm oil production in 2006

16 million tons of palm oil were produced in Indonesia during 2006. Over 4 million tons thereof were sold to local buyers. 11.5 million tons were exported.

(Kompas, 02.02.07)

Russia: Croutons segment decreased by 6.8%

According to ASNielsen, the share of croutons in the market of snacks decreased in the first six months of 2006, as compared with the similar period of 2005, на 6.8% down to 37.3%.

The largest operators in the market are the following producers: «Sibirsky Bereg», its share is 51%, and «Bridgetown Foods» — 18%.

(Advertising Industry, 30.01.07)

World: The largest countries of the world will sign an agreement on free trade

The Prime Minister of Great Britain Tony Blair stated that the largest countries of the world intend to sign within the next few months an agreement on free trade all over the world. Speaking at the economic forum in Davos, Блэр said that in his opinion reaching agreement seems more likely now than the opposite outcome of the negotiations. At the same time, he warned that the final decision hasn’t been made yet.

(Gazeta.RU)

Russia: Rates of natural loss in transportation of certain types of food products were determined

Expenses taken into account in determination of the tax base по corporate profits tax include losses of commodity stocks and supplies in storage and transportation within rates of natural loss.

Such rates were determined regarding meat and meat food, including meat, by-products of poultry and rabbits, as well as raw materials and sideline products of sugar industry delivered by different types of transportation.

Russia: The import duty on tea was abolished

The Government of Russia reduced on January 18, 2007 the import duty on tea from 5% to 0%.

Zero rates for import of green (unfermented) and black (fermented or partially fermented) tea were determined for the period of 9 months. The Government Regulation will come into effect in one month from the date of official publication thereof.

(RBC Daily)

Russia: Retail turnover in 2006 was 8.6 trillion rub.

According to Rosstat, the retail turnover in 2006 in Russia was 8.6275 trillion rub., which is larger by 13% than the same in 2005.

This figure reached in December, 2006 the level of 949.5 billion rub. (+14.8% in comparison with December, 2005).

According to the data for December, 2006, 54.4% of the total retail turnover fell on nonfoods and 45.6% fell on food products. The share of markets in the total rate of turnover decreased from 20.4% in December, 2005 to 19.1% in December, 2006.

(eaim.ru)

Russia: Companies invest in rebranding

Advertising agencies point out among the last trends of the Russian consumers market the tendency of companies to change the corporate image, for the most part due to aggravation of competition in the market or change of shareholders as a result of larger number of mergers and take-overs. Experts expect that in 2007 this trend become stronger and the number of changes of names, logotypes and corporate identities will reach the peak level.

Turhan Mahmudov, the General Director of BBDO Branding thinks that the highest demand for rebranding services in regions will be in the most competitive sectors: retail trade, financial sector and construction.

(Vedomosti)

Russia: Demand for non-sweet snacks grows by 30% per annum

According to the data possessed by experts, the volume of the Russian market of non-sweet snacks is over 200 thousand tons. It increases annually by more than 30%.

The larger part of the market (35%) is occupied by chips. Nuts occupy 30% thereof. Rusks and other products, including meat and fish snacks, occupy over 44% of the market.

40% of chips are consumed by beer lovers, 30% by children, more popular being domestic products. Experts consider that this is connected with lower price thereof. Besides, Russian people consider domestic chips to be more «natural».

Peanut is the most popular among nuts. Pistachio, hazelnut and almond are the next most popular items.

Russia: Control over rice imports from Thailand is tightened

By order of Rosselhoznadzor (Russian Federal Service for Veterinary and Phytosanitary Supervision), until April 1, 2007 rice imports from Thailand is allowed subject to submission for each consignment of information about pesticides used in raising and storing thereof, as well as test report for all safety indicators stipulated in Russian legislation.

Besides, the Russian party proposed to audit any organizations issuing safety and quality certificates for rice groats supplied from Thailand to Russia. Since April 1, 2007 such certificates will be accepted only from organizations included in the respective Rosselhoznadzor’s list.

Russia: Natural coffee consumption grows

По данным исследования of the Russian market coffee completed by the DISCOVERY Research Group agency in December, 2006 in Russia natural coffee consumption, including the same for ground coffee and coffee beans, grows annually by 5-10%.

This segment develops mainly due to the growth of coffee consumption outside home — in cafes and coffee houses.

On the whole, the coffee market volume grows during the last few years by 3-5% per annum. Upon the results of 2005, the market volume was 110-111 thousand tons or about 1.4 billion USD in wholesale prices.

Russia: Harvest of rice will be not less than in 2005

The experts think that the introduction of a constant duty on rice import, equal to 70 Euro for a ton, instead of the previous one (10% of the declared customs cost) produces a favorable effect on the development of this branch. The rice harvest in this year is expected to be not less than in 2005. The sowing areas under this crop, in accordance with the forecast of IKAR, will increase by 8–10%.

The increase of the duty did not provoke any sharp raise of the rice consumption process: during nine months of the current agricultural year (September 2005 — May 2006) the rice, if compared with the analog period of the past season, became dearer by 4%, what is considerably lower than the rate of inflation. The grow of the producers\\\' prices during the indicated period was equal to 8%, what contributed to increase the financial stability of the rice processing enterprises.

Russia: Branded macaroni occupy 60–80% of the market

According to the assessments of experts, on the Russian market of macaroni 60–80% are occupied by packaged branded products. The leader in the manufacture of such macaroni products is the company “Macfa” from the Cheliabinsk town, on whose part there fall 16% of the Russian market and more than 30% of the market of macaroni manufactured of hard wheat kinds. Other manufacturers also are developing this segment. The following companies are planning to bring their products up to the federal level: the First macaroni company entering into the structure of “Agros”, the company “Infolink” (the brand of macaroni “Chebekinskiye”) and “Altan” (the brand “Granmulino”).

The experts evaluate the cost of launching a federal brand as being equal to US$5–10 million. The time of implementation — up to five years.