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Friday, February 23, 2018

Russia has threatened to take revenge on the Egyptian ban on the import of oranges

To a lot of trouble to the oranges, there are all the chances of Egypt. The Rosselkhoznadzor has threatened the local manufacturers cut off the supply of citrus and other crop production because of the violation of phytosanitary norms. The Department explained that, despite numerous requests from the Rosselkhoznadzor Central administration of plant quarantine Ministry of agriculture of Egypt on this issue, the Egyptian side is still has not taken action to remedy the situation. However, Cairo could fix this by allowing the import of wheat from Russia.

Photo: Flickr@Jean-Marc Astesana

Habit that such prohibitions follow immediately after the introduction of sanctions against Russia. Although the Rosselkhoznadzor the existence of a relationship, usually denied, difficult to follow, literally, in late August, Egypt closed its market for grain from Russia. In scientific research Institute of plant pathology of the Ministry of agriculture of Egypt then said that in some Russian regions, in samples of wheat were identified ergot — a fungus parasitic on cereals and causes poisoning in humans. Given the fact that Russia is the largest supplier of wheat to Egypt with a share of 65% of the harvest may simply disappear. This year in our country needs to collect a record 113-116 million tonnes of grain, while domestic consumption is only 72-74 million tonnes, the Rest must be exported, however, because of the actions of the Egyptian side now these plans under the threat.

Oranges for Egypt is almost identical to that of the grain to Russia. These fruits make up 65% of citrus production and 30% of the total fruit production in Egypt. While Russia is a major importer of Egyptian oranges”: we shipped about 18% of exports of Egyptian oranges. In winter the share of Egyptian citrus in the range of domestic supermarkets reaches 30%.

The fact that Russia is using the ban on citrus is trying to solve the problem with the export of wheat, it is quite logical. Deputy Chairman of the Committee on agrarian policy of the Federation Council Irina Hecht said that suppliers of citrus from Egypt and earlier, problems have arisen in the quarantine restrictions of supply in connection with the distribution of pests — the Mediterranean fruit fly and peach fruit fly. Still without global sanctions. Will now the CPS to concrete actions, time will tell.

Oranges for Egypt is almost identical to that of the grain to Russia. This is 30% of the total fruit production in the country.
Photo: flickr / Jay Bergesen

The tactics of the Egyptians can be explained by the desire to bring down the price of grain. But it is possible that with the help of wheat, Egypt is trying to solve another, equally important issue — the resumption of air communication with Russia. All waited that it will happen in October. However, regular inspection of Russian experts on the subject of security of Cairo international airport ended last week, has not brought positive result. The matter is postponed until the moment when the second terminal, it will bear the main burden in the service of the Russians after the “discovery” of Egypt.

“Each country has its own sanitary norms and rules. It is always the subject of the agreement: it is possible to lift the quarantine, and it is possible to put forward their demands. For example, last year, our health service has been accused by the colors of the Netherlands due to insect pests thrips, although we own a lot of this thrips. It was the same with tomatoes from Turkey. This is called a trade war,” — says Deputy Chairman of the RF CCI Committee for the development of agriculture Pavel Grudinin.

What would it mean for Russia’s “trade war” with Egypt? Retailers have already promised that in case of need easily solve the problem of another embargo. Egyptian citrus will be replaced with oranges from Morocco, Pakistan and Syria. Thus Pavel Grudinin is not excluded that as soon as you block the road to the Egyptian oranges, the largest provider of these citrus fruits is Belarus. It will supply us the same fruit, but under its brand. So already in the case of Turkey. Is unlikely that ordinary customers will benefit from such changes. Prices always increase when decreasing competition. So, the Russians will again have to tighten their belts.


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