A new report has outlined the changing face of the Russian fruit import industry following the recent bankruptcy of two of the country's top three importers, Sunway and Sorus, which has left JFC as the only major player in the market.
The report highlighted the stark contrast with 2008 when the three importers together accounted for around 50-70 per cent of the markets, with Sunway leading the way on 35 per cent, according to Smokhval.
However, St Petersburg-based Sunway filed for bankruptcy in early June having failed to make the latest payment on loans secured three years ago, with the amount owed by the company reported to be in the region ofUS$27m from a total loan of around US$50m.
Stanislav Bozhenko, an analyst at financial specialist Uralsib, explained that the fruit giants had difficulties because they had developed their working capital at the expense of credit resources – an approach that became less viable as the global economic crisis took hold.
Meanwhile, Sunway was hit by a fall in demand for exotic fruits, while JFC and even Sorus were focusing more and more on the banana market.
According to the report, JFC has held a competitive advantage not only because of its focus on bananas, mango and pineapples but also the ownership of its own plantations in Ecuador.
That is not to say that JFC is not experiencing difficulties, however – demonstrated by the latest Standard & Poors international ratings, which saw the group come in at CCC+ with a negative outlook.
The full report into the Russian fresh produce import market will appear in the September issue of Eurofruit Magazine. To order your copy, contact Tracey Amos by emailing subscriptions@fruitnet.com or by calling +44 20 7501 3728
