Peru looks to build produce potential in Russia

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Peru looks to build produce potential in Russia

Grapes are already Peru's star fruit on the Russian market, but the Andean nation is placing its focus on other export products with the hope of boosting sales.asparagus

The Peruvian Export and Tourism Commission (Promperú) explained to www.freshfruitportal.com that  its current efforts are aimed at increasing Peruvian product availability on foreign markets, in particular in Russia.

Through market studies and visits, the commission is working to improve its understanding of what Russian consumers need.

The commission described Russia as a very complicated market due to its geography and climate: "to have a market strategy, you have to plan the entire supply chain because prices fluctuate due to climatic and geographical changes, and the distance between cities."

Regarding products currently available on the Russian market, Promperú said shipments are growing with force.

"Asparagus which arrives, for example in Rotterdam and later to Russia, is not registered as a Peruvian product and does not appear in statistics," Promperú said.

"This happens to us with a few far off markets, which makes it so that Russia does not appear as one of our most important markets. But this is because the product is redistributed and arrives to other parts of Russia."

The commission also highlighted the "fame" of its star product: grapes.

"We have a few small shipments still of avocado and mandarins but grapes are the most sent," the organization said.

Due to this, Promperú hopes to build on the potential created by grapes and promote other products like mandarins, avocados and asparagus.

"We know Russians are aware of Peruvian grape quality. It's the product they know the most and it will allow other products to grow and spin off of the reputation that grapes have," the commission said.

"There are four or five products that have potential in the short run, while others are going to take longer. But in the case of products like avocado, asparagus and grapes, we are going to increase shipments after we have identified buyers, gone to markets and made commercial arrangements with companies."

Promperú explained that the organization is in the initial phase with Russia, as it analyzes businesses, product potential and costs. The government entity is also looking to establish a commercial agreement with the nation.

With respect to competition with other countries, Promperú pointed out that it has the advantage of counter-seasonal production. In the case of grapes, the fruit is available from October to March when volume in Russia is low.

For mandarins, Peru is present during the second quarter when import prices for the fruit tend to decline, which encourages Russian buyers to take on more product. For avocado, Peru is the second largest supplier there after South Africa. Prices and volume for the fruit follow the same trend.

www.freshfruitportal.com

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