CCP: BA/TF 01/12


COMMITTEE ON COMMODITY PROBLEMS

INTERGOVERNMENTAL GROUP ON BANANAS
AND TROPICAL FRUITS

Second Session

San José, Costa Rica, 4 - 8 December 2001

MARKET PROSPECTS FOR TROPICAL FRUITS IN RUSSIA

Table of Contents



I. INTRODUCTION

1. The Second Session of the Sub-Group on Tropical Fruits held in Gold Coast, Australia, in May 1999 recommended that the Secretariat continue to analyze markets of interest, particularly emerging markets such as Eastern Europe and the Russian Federation. An overview of the current outlook for the tropical fruits market in the Russian Federation was prepared in response to this recommendation, and indications are that this overview may be the first ever study of the Russian market for tropical fruits. Tropical fruits have emerged only very recently in the country, and are marketed on a much smaller scale than other fruits and vegetables.

2. Information provided in this report is based on official statistics, customs data, interviews with commercial institutions and the results of a consumer and retailer survey conducted in six of the largest cities in the federal and oblast centres (Moscow, Oryol, Rostov-on-Don, Pskov, Novosibirsk and Irkutsk) in different regions of the Russian Federation.1 The survey is an important and unique source of information on the emerging market for tropical fruits in Russia.

II. SUPPLY

A. IMPORT TRADE

3. Pineapples and mangoes imported from Vietnam and Cuba were the only tropical fruit available in Russia prior to the early 1990s, and supplies were irregular and sporadic. Very few Russian consumers were aware of tropical fruits, and even fewer had an opportunity to actually taste tropical fruit in other countries.

4. The market for tropical fruits in Russia is completely dependent on imports. During the Soviet period, import decisions were made by the state, allowing food imports based on necessity rather than consumer demand and preferences. There was a firm, state-held belief that the Soviet people could forego luxury products, such as tropical fruits, to utilize hard currency for imports contributing to the overall development of the country. Thus, because hard currency expenditure was controlled by the state, tropical fruits were only supplied by countries, such as Cuba or Vietnam, which had negotiated special payment arrangements with the former Soviet Union.

5. Dramatic economic developments curtailed a definitive upward trend in imports prior to the 1998 economic crisis. Growth in import volumes was disrupted and the market for tropical fruits destabilized by the economic crisis beginning in August 1998. The crisis had a significant negative impact on imported food products, particularly those not considered necessities, such as tropical fruits. Imports of tropical fruits declined 72 percent between late 1997 and 1999, from nearly 20 000 tonnes pre-crisis to 5 600 tonnes in 1999. Subsequently however, import volumes increased as the Russian economic situation improved, and for the period October through December 1999, the volume of imported tropical fruits had doubled from the same period of 1998. Table 1 shows imports of tropical fruits by Russia by fruit from 1996 through 1999.

6. The market share attributable to tropical fruits as a proportion of total fruit imports has been stable at three percent, despite fluctuations in overall imported fruit supplies. While pineapples accounted for over 75 percent of total tropical fruit imports in 1999, the share of pineapple vis-à-vis other tropical fruit imports has been declining. Mango, guava and mangosteen (as one category) accounted for the second largest market share for tropical fruits in 1999; however, avocado has surpassed these fruits as the second largest seller in the Russian Federation, increasing from 7.3 to 14.6 percent of sales between 1998 and 1999.

7. Table 2 presents tropical fruit imports by country of origin, according to official Customs data. Africa accounted for slightly more than 37 percent of all tropical fruit exports to the Russian Federation in 1999, with Latin America at 28 percent and Asia at 19 percent. The European Community accounted for the remaining 16 percent (primarily citrus). Top suppliers to the Russian Federation included Côte d'Ivoire, Brazil, Ecuador, Israel, China and Spain, with imports from other origins typically of low volume and sporadic.

8. Negligible volumes of tropical fruits are re-exported to other CIS countries, such as Armenia, Kazakhstan and Kyrgyzstan. Total re-export volume from 1996 through 1998 was only 0.06 percent of total imports, although it increased to 0.37 percent of total imports in 1999. Imports for re-export primarily consist of pineapples, with over 95 percent of re-export trade in recent years, while deliveries of other tropical fruits are occasional.

B. AVAILABILITY

9. The beginning of economic reforms and the liberalization of foreign trade dramatically changed the Russian market for fruit, and food products in general, as markets were opened to imported products. Essentially non-existent during the initial post-reform years, the market for tropical fruits emerged as traders developed a domestic market. According to the survey completed for this document, 63 percent of polled consumers agreed that it had become easier to actually find tropical fruits for sale in the past one to two years, despite the economic crisis which had begun in August 1998.

10. Most of the major tropical fruits, such as pineapples, mangoes, avocados and to a lesser extent, papayas, are available on the Russian market. While 83 percent of consumers polled were aware that these major tropical fruits could be purchased, 92 percent said that the minor, more exotic fruits, such as guava, rambutan, litchi or passionfruit, were very difficult to find and expensive to purchase.

11. According to the survey results, 21 percent of Russian consumers would purchase more tropical fruits (both major and minor) if these products were more widely available on sale. There is a definite seasonality to demand for tropical fruits, as most of the demand is concentrated around New Year's Day (1 January) and Women's Day (8 March), when many retail outlets sell tropical fruits typically not on offer for the rest of the year.

C. MARKET ACCESS

12. Tropical fruits are included in the list of commodities that are subject to compulsory certification by two organizations, the Department of State Sanitary and Epidemiological Control (Ministry of Health) and the State Committee on Standards and Certification. Importers must obtain hygienic certification (the Rostest Certificate) to certify product quality and safety. At Customs entry points, shipments are checked by phytosanitary inspectors of the State Service for Plant Quarantine under the Phytosanitarian Control Act.

13. The base customs duty rate for imports of pineapple, avocado, mango, mangosteen and lime is 5 percent, and for other listed fruits, 10 percent.2 Duties are reduced to 75 percent of base level for imports from countries with preferential access to the Russian Federation, while imports from Least Developed Countries (LDCs) are duty-free. National Customs collects a 20 percent Value Added Tax, and an additional sales tax is imposed at the retail level in many regions, varying up to the ceiling rate of five percent.

III. MARKET STRUCTURE

14. Only one foreign trade organization (Sojuzplodoimport) was authorized by the state to purchase and import fruit during the Soviet period. When the state monopoly was abolished with the liberalization of foreign trade, private companies created a new market for tropical fruit - essentially making these fruits available to the Russian population for the first time in the early to mid-1990s.

15. The structure of the tropical fruit market is different from the markets for more traditional fruit. Tropical fruits often require special handling, storage and distribution systems. As such, specialized operations are necessary and fewer companies specialize and operate in the tropical fruit market in the Russian Federation. Currently, five firms trade fresh tropical fruit in Moscow, the largest and most important market for tropical fruits in Russia.

16. While most other non-specialized large fruit operators also participate in the tropical fruit business to some extent, their primary purpose for handling tropical fruits is to offer a wide range of food products. Tropical fruits usually account for 10 to 20 percent of the total import portfolio of these fruit market operators, with the percentage of tropical fruit imports heavily dependent on the current economic situation in the Russian Federation. After the August 1998 crisis, tropical fruits were often among the first products to be eliminated by importers, and both the range and type of tropical fruit imports were reduced. Before the crisis, the largest firms would have imported up to 20 types of fruit; by 1999 the number was reduced to 5 to 10 of the most popular and largest volume of all fruits.

17. The Russian Fruit Trade Association stopped all promotional activities on behalf of its member companies due to the financial crisis in 1998. Currently, there is no organization responsible for the coordination and/or promotion of the fruit industry in the Russian Federation.

A. WHOLESALE AND RETAIL MARKETING

18. Tropical fruit importers strive to ensure confirmed distribution outlets (either wholesale or retail) for products well in advance of delivery, mostly due to the perishability of the fruit. Specialized firms usually have long-term contracts with direct deliveries to regular customers, typically the more expensive `elite' supermarkets and restaurants. Smaller firms will offer tropical fruits on an occasional basis, typically before holiday periods (especially New Year), while the larger firms import tropical fruits on a more regular basis.

19. Imported fruit not directly moved to marketing channels may be stored in rented warehouses usually located in former fruit and vegetable open markets, that now serve as larger wholesale outlets ensuring a wide assortment of products on offer to smaller wholesalers (including those from other regions) and retailers that regularly make purchases from larger importing companies.

20. Wholesale importers may make direct regional deliveries, particularly in those regions where there are business affiliates or negotiated contracts with regional suppliers. Tropical fruits are usually transported by truck, as there are no freight rates for tropical fruit included in Standard Railway Transportation Terms in the Russian Federation, and thus, freight risk falls directly on the principal shipper and/or agent(s). While the share of tropical fruit deliveries the regions sharply declined after the August 1998 crisis, the current situation indicates increased shipping of fruits to different regional markets.

21. The structure of the retail market for tropical fruits is different from that of more traditional markets in Russia. Most tropical fruits are sold in department stores and expensive supermarkets, where the most exotic types are offered. Wholesale and urban city markets are becoming increasingly important sites for direct tropical fruit sales to consumers. According to official statistics, these markets presently account for 50 percent of total fruit sales in Russia. Street vendors also offer tropical fruits but to a much lesser extent, primarily due to the relatively low demand from consumers at these sales points, as well as being open air sites, precluding fruit sales in winter months due to freezing temperatures.

IV. DEMAND

A. PER CAPUT TROPICAL FRUIT CONSUMPTION

22. Tropical fruits were basically unknown and almost completely unavailable to Russian consumers before the early 1990s, and thus, both consumer awareness and per capita consumption levels are low.3 Currently, consumer awareness of tropical fruits has improved, but varies widely by fruit type.

23. The average per capita consumption of selected tropical fruits (calculated on the basis of import volumes and total population statistics) in Russia is considered low, only 27.8 grams of pineapple, 5.3 grams of avocado, 2.7 grams of mango, and less than 1 gram of all other tropical fruits in 1999. Table 3 presents per capita consumption of selected tropical fruit in Russia from 1996 through 1999. The four-year average annual per capita consumption rate for all tropical fruits is estimated at less than one (0.8) kilogram.

24. The consumer poll results indicated that 66 percent of the respondents purchase tropical fruits. However, nearly 50 percent of these purchases are pineapple, with slightly more than 20 percent of these purchases being just one pineapple per year (and no other tropical fruit) in order to celebrate with an exotic and expensive food product on New Year's Day or Women's Day. The consumer poll completed for this report indicated that 100 percent of respondents had tasted pineapples, 65 percent had tasted mangoes and 51 percent had tasted avocados. Less than 10 percent of the respondents had tasted more exotic fruits, such as longan and rambutan, and usually while travelling abroad. Table 4 shows results of the poll undertaken for this study of consumer awareness and per capita consumption of tropical fruits in Russia.

25. For most Russian consumers, tropical fruits are not generally regarded as part of the fruit component of a daily diet and tend to perform other functions (such as gifts on special occasions). There is also pronounced seasonality in the Russian fruit market, as demand for tropical fruits is lowest in summer and early autumn when other (especially domestic) fruits are abundant.

B. ECONOMIC FACTORS AFFECTING CONSUMPTION

26. The consumption of fruits in Russia is highly dependent on household income levels. Expenditures on tropical fruits show one of the largest differentiations in population and income groups among all basic food products. Table 5 shows the basic characteristics of tropical fruit consumption by income group. Many poll respondents of the two poorest income groups (with incomes less than 1 000 rubles or US$34.90 per month per family member)4 had to stop purchasing tropical fruits after the 1998 economic crisis; and for most, present income levels remain below the minimum subsistence level. Half of the households considered to be of the lowest income groups purchase one pineapple per year for the entire family, usually to celebrate the New Year.

27. The majority of Russians belong to the third income category, earning 1 000 to 5 000 rubles (US$35 to 175) per family member per month. Households at this income level can usually afford to diversify fruit consumption by including some tropical fruits, and on average consume 1.3 pineapples, 1.2 mangoes and 0.73 avocados per year. Nearly 27 percent of this income group reported purchasing tropical fruits on a monthly basis.

28. Forty percent of households earning 5 000 to 10 000 rubles (US$175 - 350) per family member per month, and 80 percent of households earning over 10 000 (> US$350) per family member, indicated more regular consumption of tropical fruits. Higher income households tend to make purchases in more expensive supermarkets offering a wider range of tropical fruits, and have more opportunities to travel and try different fruits. The highest income group consumes four times as many pineapples, 2.4 times as many mangoes and 14 times as many avocados as the third income category.

29. Consumption of tropical fruits is dependent on price levels in 70 percent of the polled households. Only those households earning more than 10 000 rubles per month responded that they can afford not to consider price levels of tropical fruits in food purchases. Most of the respondents (73 percent) would choose to increase tropical fruit consumption if prices were more acceptable to the majority of consumers.

30. Prices for fresh tropical fruits in Russia are relatively high. According to the retailer poll completed for this study, pineapples cost 74.8 rubles per kilogram, mangoes 91 rubles and avocados 107.4 rubles, or US$2.60, US$3.20 and US$3.80 per kilogram, respectively, in January/February 2000.5 In the same time period, prices for other more traditional fruits were 24.2 rubles per kilogram for apples, bananas at 25.3 and oranges at 25.9 - all less than US$1.00 per kilogram, according to official data from the Russian Statistical Agency. Processed tropical fruits tend to be more price competitive. For example, prices for fruit juices, irrespective of the type of fruit used to make the juice, typically fluctuate around US$ 1.00 per litre, allowing more households access to tropical fruit through processed instead of fresh consumption.

31. Seasonality also impacts on the price levels of tropical fruits in the Russian Federation. An abundant supply of other fruits (including domestic production) offered at cheaper prices during the summer and autumn tends to exert downward price pressure on tropical fruits over the same period. Tropical fruit prices, and demand for these products, decline as consumers turn to more economically priced alternatives. Price levels for tropical fruits may decline on average by as much as 30 percent over the summer/autumn period, according to the poll. Conversely, prices and demand are highest in winter, particularly for the New Year's holiday.

C. NON-ECONOMIC FACTORS AFFECTING CONSUMPTION

32. Consumer awareness of tropical fruits is an important non-economic factor influencing current consumption levels in the Russian Federation. According to the retailer poll, there are two distinct consumption patterns (apart from pronounced seasonal trends). Nearly 47 percent of the retailers agreed that tropical fruits were purchased occasionally, while 53 percent could distinguish a group of regular tropical fruit buyers.

33. Regional location is also an important factor in consumption levels of tropical fruit in Russia. Tropical fruits are not available in rural areas and the most northern regions, with supplies much more limited in areas situated far from the European and Far East parts of Russia. Prices for fruits in these regions, when available, are on average up to 30 percent higher than in urban areas.

34. Rural residents not only have lower incomes, but spend a lower percentage of household income on fruit purchases than urban residents.6 Low population levels, low incomes, plus a lack of consumer awareness of tropical fruit, are constraints which preclude the development of a market for tropical fruit in more rural, isolated areas.

35. There is also a market for processed tropical fruit products. These fruit-based products, particularly juices and yoghurts, are consumed much more regularly than fresh fruit, primarily because the price of the product seems to be independent of the type of fruit used to make the product.

V. OUTLOOK

36. The results of this study indicate that the tropical fruit market in Russia is far from mature; it is an emerging market in its initial stages of development. Early signs of growth in the mid-1990s were curtailed by the financial crisis of 1998. However, recent data indicate that consumption and trade are starting to recover to previous levels. Generally, the outlook for growth in the tropical fruit market in Russia is favourable.

37. Consumer awareness of tropical fruits has increased since the beginning of the 1990s, an important and critical first step toward generating future market growth. Also, despite the difficult economic situation in Russia since 1998, over 60 percent of the polled respondents indicated that tropical fruits are currently more available now than two years ago. Also important is the emergence of a group of regular consumers of tropical fruits, which should continue to expand over time. Furthermore, the market for tropical fruits has developed despite being typically priced three to four times higher than traditional fruits.

38. One rapid way of acquainting Russian consumers with tropical fruit seems to be through processed products. Many families with relatively low incomes become more aware of tropical fruits through consumption of processed products such as fruit juices, an important means of increasing consumer awareness. Furthermore, poll results and reports indicate that Russian consumers quickly adapt to consumption of formerly unknown fruit products, for example kiwi fruit, for which demand has increased dramatically.

39. An additional factor which is favourable for the further development of the tropical fruit market in Russia is rising incomes, closely related to increased tropical fruit consumption. Although the economic crisis of 1998 curtailed prospective growth in this market, a sustained recovery in economic growth in the Russian Federation in the coming years should stimulate demand for tropical fruits. Currently, the World Bank projects a 4.7 percent increase in average annual GDP growth rates from 2000 to 2004 for the Russian Federation, which could support further demand growth in the tropical fruit market. The number of persons living below minimum subsistence income levels declined from 37.7 percent (55.2 million) in early 1999 (January-March) to 26.3 (38.5 million) by late 1999 (October-December), evidence of economic recovery in the Russian Federation post-1998 crisis. Tropical fruit imports during the final three months of 1999 were double those of the same period in 1998, amidst signs of an improving economic situation that could support further growth in demand. In fact, the consumer poll conducted for this report indicated that only 14 percent of respondents were satisfied with their present consumption levels of tropical fruit, while 86 percent would like to increase their consumption of these fruits.

40. As with most emerging markets, the tropical fruit market in Russia has unrealized future potential, the full extent of which was just starting to be known prior to the economic crisis of 1998, when market growth was curtailed. High prices, and the inability to compete on a price level with more traditional fruits, together with low consumer incomes, remain the principal constraints to further market development and expansion.

Table 1 - Russia's imports of tropical fruits

  1996 1997 1998 1999
Pineapple, fresh or dried
Volume, kg 9 764 693 16 358 116 10 650 544 4 318 251
Value, US$ 6 185 341 6 755 930 4 190 929 1 451 993
Average unit value, US$/kg 0.63 0.41 0.39 0.34
% of total tropical fruits volume 86.56 86.89 83.53 77.11
Guava, mango and mangosteen, fresh or dried
Volume, kg 1 107 909 1 599 143 1 079 278 409 995
Value, US$ 1 136 947 1 287 018 949 146 152 725
Average unit value, US$/kg 1.03 0.80 0.88 0.37
% of total tropical fruits volume 9.82 8.49 8.46 7.32
Avocado, fresh or dried
Volume, kg 387 042 769 967 948 200 820 560
Value, US$ 411 745 420 111 429 231 261 468
Average unit value, US$/kg 1.06 0.55 0.45 0.32
% of total tropical fruits volume 3.43 4.09 7.4 14.65
Papaya, fresh
Volume, kg 21 745 63 564 34 686 19 412
Value, US$ 21 683 64 063 29 647 48 430
Average unit value, US$/kg 1.00 1.01 0.85 2.49
% of total tropical fruits volume 0.19 0.34 0.27 0.35
Passion fruit, star fruit and pitaya, fresh
Volume, kg   34 934 38 240 31 542
Value, US$   76 407 22 557 23 772
Average unit value, US$/kg   2.19 0.59 0.75
% of total tropical fruits volume   0.19 0.30 0.56
TOTAL
Volume, kg 11 281 390 18 825 724 12 750 948 5 599 762
Value, US$ 7 755 716 8 603 530 5 621 510 1 938 388
Average unit value, US$/kg 0.69 0.46 0.44 0.35


Source: State Customs Committee of the Russian Federation

 

Table 2 - Tropical fruit imports by origin in 1999 by the Russian Federation

  Volume, kg Share in total imports of tropical fruits

%
Source Pineapple Guava, mango & mangosteen Avocado Papaya Passion & star fruit, pitaya
Africa 1 970 061 40 139 82 033 211 6 215 37.48
Burkina Faso 152 291 - - - - 2.72
Côte d'Ivoire 1 688 771 4 904 - 70 - 30.25
Egypt - 520 - - - 0.01
Ghana 10 186 280 - - - 0.19
Kenya - - 5 969 - 4 788 0.19
Morocco 4 025 10 532 8 487 - 165 0.41
Syria 113 710 23 903 67 577 141 453 3.67
Tunisia 1 000 - - - - 0.02
Zimbabwe 78 - - - 779 0.02
Americas 1 277 748 227 156 22 291 15 640 2 675 27.60
Argentina - 684 - - - 0.01
Brazil 542 630 190 488 2 820 10 531 1 123 13.35
Chile 29 066 3 297 6 062 - 1 498 0.71
Colombia - 47 - 60 - 0.00
Costa Rica 181 887 320 - - - 3.25
Cuba - - - 70 - 0.00
Dominican Rep. 24 089 - 5 720 - - 0.53
Ecuador 430 075 14 405 5 170 45 - 8.03
Guatemala - 2 442 - 35 - 0.04
Honduras 51 673 - - - - 0.92
Jamaica - - - 4 169 - 0.07
Mexico 865 7 916 1 559 - - 0.18
Peru - 4 386 - - - 0.08
El Salvador - - - - - 0.00
United States 17 463 2 771 960 730 54 0.39
Venezuela - 400 - - - 0.01
Asia 550 106 50 317 436 552 540 10 662 18.72
China* 304 869 - - - - 5.45
Cyprus 19 - - - - 0.00
India 3 000 600 20 - - 0.06
Indonesia - 224 - - - 0.00
Israel 4 983 39 305 436 532 72 992 8.61
Malaysia 43 805 124 - 468 9 670 0.97
Philippines 47 250 - - - - 0.84
Singapore 5 520 - - - - 0.10
Thailand 138 260 10 064 - - - 2.65
Turkey 2 400 - - - - 0.04
Europe 483 407 92 368 279 685 2 850 11 952 15.54
Belgium 24 267 14 414 180 3 - 0.69
Finland 11 000 23 40 - - 0.20
France 16 898 20 400 26 431 29 10 068 1.32
Germany 19 270 2 000 48 1 000 - 0.40
Greece 1 885 120 920 - - 0.05
Italy 21 652 - 62 - - 0.39
Latvia 405 5 - - - 0.01
Netherlands 104 678 44 780 15 886 1 127 1 830 3.01
Poland 2 295 360 256 - 21 0.05
Spain 223 984 10 266 235 862 691 2 418 8.41
Switzerland 57 073 - - - - 1.02
             
New Zealand 36 930 16 - 172 38 0.66
TOTAL 4 318 251 409 996 820 561 19 412 31 542 100.00


* China imports included the Province of Taiwan (11 660 tonnes)

 

Source: State Customs Committee of the Russian Federation

 

Table 3 - Imports and consumption of selected tropical fruits in Russia

  1996 1997 1998 1999
Pineapple, fresh or dried
Import volume, kg 9 764 693 16 358 116 10 650 544 4 318 251
less re-export volume, kg 5 163 10 459 6 537 19 642
Net import volume, kg 9 759 530 16 347 657 10 644 007 4 298 609
less 5% losses, kg 487 976 817 382 532 200 214 930
Total consumption, kg 9 271 554 15 530 274 10 111 806 4 083 679
Total population, 1 000 147 976 147 502 147 105 146 693
Per capita consumption, grams 62.66 105.29 68.74 27.84
Guava, mango and mangoesteen, fresh or dried
Import volume, kg 1 107 909 1 599 143 1 079 278 409 995
less re-export volume, kg 96 0 0 738
Net import volume, kg 1 107 813 1 599 143 1 079 278 409 257
less 5% losses, kg 55 390 79 957 53 963 20 462
Total consumption, kg 1 052 422 1 519 186 1 025 314 388 794
Total population, 1 000 147 976 147 502 147 105 146 693
Per capita consumption, grams 7.11 10.30 6.97 2.65
Avocado, fresh or dried
Import volume, kg 387 042 769 967 948 200 820 560
less re-export volume, kg 1 901 14 0 194
Net import volume, kg 385 141 769 953 948 200 820 366
less 5% losses, kg 19 257 38 497 47 410 41 018
Total consumption, kg 365 884 731 455 900 790 779 348
Total population, 1 000 147 976 147 502 147 105 146 693
Per capita consumption, grams 2.47 4.96 6.12 5.31
Papaya, fresh
Import volume, kg 21 745 63 564 34 686 19 412
less re-export volume, kg 0 0 0 21
Net import volume, kg 21 745 63 564 34 686 19 391
less 5% losses, kg 1 087 3 178 1 734 969
Total consumption, kg 20 657 60 385 32 951 18 421
Total population, 1 000 147 976 147 502 147 105 146 693
Per capita consumption, grams 0.14 0.41 0.22 0.13
Passion fruit, star fruit and pitaya
Import volume, kg n.a. 34 934 38 240 31 542

less re-export volume, kg

n.a. 0 0 25
Net import volume, kg n.a. 34 934 38 240 31 517
less 5% losses, kg n.a. 1 746 1 912 1 575
Total consumption, kg n.a. 33 187 36 328 29 941
Total population, 1 000 147 976 147 502 147 105 146 693
Per capita consumption, grams n.a. 0.22 0.25 0.20
Total
Import volume, kg 11 281 390 18 825 725 12 750 949 5 599 762

less re-export volume, kg

7 160 10 473 6 537 20 620
Net import volume, kg 11 274 230 18 815 252 12 744 412 5 579 142
less 5% losses, kg 563 712 940 763 637 221 278 957
Total consumption, kg 10 710 519 17 874 489 12 107 191 5 300 185
Total population, 1 000 147 976 147 502 147 105 146 693
Per capita consumption, grams 72.38 121.18 82.30 36.13


Source: State Customs Committee of the Russian Federation and the Institute for Economy in Transition (Moscow)

 

Table 4 - Consumer awareness and consumption of tropical fruits

  % of respondents that tasted the fruit % of families that consume the fruit at least once a year Average per capita consumption (number of fruits per year) Average per capita consumption in consuming families (number of fruits per year)
Pineapple 100 65 1.22 1.91
Mango 65 29 0.89 3.51
Avocado 51 22 1.02 4.87
Papaya 39 8 0.03 0.53
Passion fruit 18 6 * *
Guava 17 2 * *
Star fruit 8 1 * *
Litchi 7 - - -
Rambutan 5 - - -
Mangosteen 3 1 * *
Durian 1 1 * *
Longan 1 - - -


* respondents were not able to estimate the consumption of a fruit numerically

Source: Consumer poll, Institute for Economy in Transition (Moscow)

 

Table 5 - Basic characteristics of tropical fruit consumption by income groups

  Average monthly income per family member, rubles* Average

(weighted)

  under 500 500-1 000 1 000-5 000 5 000-10 000 over 10 000
% of respondents 8 32 43 10 7  
Tropical fruits in general
Number of fruits tasted 1.75 2.41 3.40 5.10 6.57 3.34
Number of fruits consumed at least once a year 0.38 0.72 1.42 2.70 3.57 1.39
% of respondents purchasing tropical fruits 25.0 53.1 74.4 80.0 100.0 66.0
% of respondents purchasing tropical fruits at least once a month - 9.4 26.8 40.0 80.0 22.0
% of respondents that in the recent 1-2 years:
- enlarged consumption - 3.1 27.9 40.0 57.1 22.0
- curtailed consumption - 15.6 18.6 10.0 - 14.0
- stopped consumption 50.0 31.3 11.6 10.0 - 20.0
% of respondents whose consumption depends on price 100.0 78.1 72.1 50.0 14.3 70.0
Selected tropical fruits:

Pineapple

% of respondents who had tasted the fruit 100.0 100.0 100.0 100.0 100.0 100.0
% of families consuming the fruit at least once a year 25.0 53.1 72.1 80.0 100.0 65.0
Average personal consumption (number of fruits per year) 0.10 0.47 1.30 2.19 5.25 1.22
Average personal consumption in consuming families (number of fruits per year) 0.4 0.83 1.92 2.76 5.25 1.91
% of consuming families buying only pineapples 50.0 76.5 48.3 12.5 - 47.5
% of consuming families buying only 1 pineapple a year and no other tropical fruits 50.0 47.1 13.8 - - 21.3
Mango
% of respondents who had tasted the fruit 37.5 43.8 72.1 100.0 100.0 65.0
% of families consuming the fruit at least once a year 12.5 6.3 34.9 60.0 71.4 29.0
Average personal consumption (number of fruits per year) 0.10 0.22 1.20 1.41 2.82 0.89
Average personal consumption in consuming families (number of fruits per year) 0.50 3.00 4.24 2.56 3.95 3.51
Avocado
% of respondents who had tasted the fruit - 37.5 55.8 80.0 100.0 51.0
% of families consuming the fruit at least once a year - 6.3 20.9 50.0 85.7 22.0
Average personal consumption (number of fruits per year) 0 0.05 0.73 1.76 10.3 1.02
Average personal consumption in consuming families (number of fruits per year) 0 0.71 3.19 3.92 13.09 4.87


* at the moment of the study the exchange rate fluctuated between 28.4 and 28.9 rubles per US dollar

Source: Consumer poll, Institute for Economy in Transition (Moscow)

________________________

1 The market survey was developed and completed by the Institute for Economy in Transition (Moscow). The full report is tabled as document CCP: BA/TF 01/CRS.10. Tropical fruit for the purposes of this document does not include information on banana and citrus in Russia, primarily focusing on pineapples, mangoes, papayas, avocados and minor exotic fruits.

2 Durian, longan and rambutan are not specifically named in Russian Customs Codes.

3 There are no official statistics on tropical fruit consumption and retail sales in Russia, as tropical fruits are not included in the list of basic foods for which regular and comprehensive surveys are undertaken. Thus, estimates of per capita consumption for this report are derived on the basis of net import statistics, and two basic assumptions: one, that as tropical fruits are perishable products, there is no stocks-building and that when there are surplus imports, products are sold at discounted prices and may influence annual consumption levels; and two, that the average product loss is 5 percent (based on 2 percent loss specifications for a standard import contract, plus 2.5 to 4 percent loss during wholesale and retail handling). Thus, total tropical fruit consumption is assumed to equal import volumes less re-export less loss during shipment and handling.

4 Exchange rates in March 2000 (the period when the consumer and retailer survey was undertaken) fluctuated between 28.4 and 28.9 rubles per dollar, for an average 28.65 rubles per dollar.

5 Other tropical fruits were even more expensive at the time of the survey: starfruit 40.6 rubles (US$1.42) per fruit; passionfruit 382 rubles (US$13.33) per kg; litchi 438 rubles (US$15.29) per kg; mangosteen (US$22.89) per kg. Note that these fruits are only sold in expensive supermarkets and include high trade margins.

6 About 39 million (or 26.7 percent) of Russian citizens live in rural locations and 40.7 million (or 27.7 percent) live in provincial towns, in both areas tropical fruit consumption is considered to be very low. Most consumption is concentrated in larger urban areas (with populations over 100 000), where more than 66 million (or 45.4 percent) of Russians reside.