Russia Food Import Embargo Will Not Affect Slovenia Too Much

According to data cited by the daily Delo, Slovenia exported EUR 632,000 worth of meat and meat products to Russia in the first four months of the year, EUR 304,000 of which represented fish and EUR 189,000 poultry.

Milk and dairy products accounted for EUR 141,000, the bulk of which was cheese (EUR 94,000). Meanwhile, fruit and vegetables only accounted for EUR 20,000 and cereals for EUR 24,000.

Overall, Slovenia's merchandise exports to Russia amounted to EUR 1.47bn last year and EUR 493m in the first four months of this year.

The Economy Ministry said Slovenia's main food exports to Russia, baby food, whose exports totalled EUR 11m last year, was fortunately not affected by the embargo. Exports of other food amounted to only EUR 9m last year.

The agri-food chamber at the Slovenian Chamber of Commerce and Industry (GZS) says its members have so far not reported any difficulties in trade with Russia, but are concerned about the food ban.

Apart from direct damage to business, Slovenian food companies also fear a surplus of food and falling food prices on the EU market resulting from the ban.

Among those exporting to Russia, Pivka, whose main line of business is poultry, will only generate 3.3% of its overall revenue on the Russian market through sales of fish cans by its subsidiary Delamaris.

Company official Damjan Oblak told Delo that Delamaris's exports to Russia were up 144% to 400,000 cans from last year.

Since a lot had been invested in reentering the market in 2011, the ban would not only cause a loss of revenue but also the failure to offset the costs, while the market would probably be lost for good.

Cooking oil manufacturer Gea only exports special oils to Russia and it is currently not clear whether they are subject to the ban as well. The company only generates 1-2% of its revenue in Russia.

Nevertheless, Russia is an important market for Gea, as it is for Eta, the preserves and condiments manufacturer. Its products are not on the list for which import ban is currently in force.

Eta CFO Ksenija Jankovič Banovšek also told business daily Finance that it would be very hard for the company to return to the market if a ban was enforced so they hope it would not be.

Although Perutnina Ptuj only exports small quantities of poultry to Russia, sales manager David Visenjak said the embargo would affect their future plans in Russia; currently talks are being finalised for major export deals.

The daily Dnevnik meanwhile cited Perutnina chairman Roman Glaser as saying that some of their production facilities, including those in Bosnia and Serbia, were not affected by the ban.

Source: The Slovenia Times

Photo source: Swedmach

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