Rosselkhoznadzor will strengthen control over the import of flowers: will prices rise?

Expert Anna Vovk: “We have a lot of flower beds, but import substitution in this area is not gaining momentum

Russian regulatory authorities have asked the EU to strengthen controls on roses from Ecuador and the Netherlands. The reason is “numerous violations of phytosanitary requirements.” Either a polyphagous humpback fly or a thrips will be found. The clean supply rule is a necessary measure to prevent plant diseases from being brought into Russia. But how could a possible freeze on flower traffic affect the domestic market? If the main suppliers of roses to our country leave the market, who will be able to replace them?

Rosselkhoznadzor will strengthen control over the import of Ecuadorian and Dutch roses from the European Union due to violations of phytosanitary requirements. The agency has made a corresponding request to the competent authorities of the EU countries, the Russian supervisory agency reports.

In early February, Russia already refused Ecuadorian bananas. A polyphagous humpback fly was found in them. Rosselkhoznadzor also suspended the import of carnations in which thrips (a small insect) was found. Only the lazy did not pay attention to the fact that inspections of products supplied to the territory of the Russian Federation began after the President of Ecuador announced an exchange with the United States of military equipment produced by the USSR, which violates the terms of the agreement with Russia.

Meanwhile, Ecuador is actually the only supplier of bananas for Russia (with a share of 96%) and accounts for about half of the imports of fresh roses, carnations and some other flowers. According to preliminary estimates, if the freeze on import flows drags on, Ecuador risks losing more than $750 million in a year.

At the same time, the threat that our supervisory authorities and ministries are talking about really exists. If an outbreak of some disease occurs in a certain region, this can lead to the death of flowers in domestic farms and material losses. Therefore, the requirements of phytosanitary rules are quite stringent: if Russian departments have complaints against foreign manufacturers, then the supply of such potentially dangerous products must be stopped.

“Of course, restrictions on the import of roses from Ecuador and the Netherlands will lead to fewer fresh flowers on sale,” says Ivan Samoilenko, managing partner of B&C Agency. – It is unlikely that it will be possible to completely replace Ecuador and the Netherlands in the supply of roses to the Russian market, but the import of products from Kenya and other countries that specialize in growing fresh flowers is already partially increasing. In addition, the preferences of Russians are also changing, who in recent years have increasingly chosen domestically produced flowers or more budget-friendly types of flowers – not only roses, but asters, peonies, lilies…”

According to Anna Vovk, a member of the Council on Financial, Industrial and Investment Policy of the Chamber of Commerce and Industry of the Russian Federation, in addition to the real phytosanitary threat, there are also political reasons why the level of supply control can sometimes be reduced, or, on the contrary, it can be strengthened and not accept these cargoes in Russia.

“Based on the fact that Ecuador’s main buyer is Russia, we can conclude that the political aspect of this situation plays a greater role than the phytosanitary one,” the expert believes. “Historically, Russia buys Ecuadorian roses in large volumes, depending on the season: somewhere around 50%, or even more.”

Vovk emphasized that Russia has a huge number of flower beds and rose gardens, but import substitution in this area is not gaining momentum. According to her, the market has long been established in such a way that there are both Russian and imported flowers on it, and their ratio has not fundamentally changed over the past 10 years.

Meanwhile, now the share of domestic products on the market is no more than 15%, the rest is imported. In Russian conditions, growing roses is much more expensive than in Ecuador, where there is much more sun, less electricity is required, and the cost of flowers is lower. But domestic farms have been increasing the share of roses in greenhouses for several years now: if in 2020 there were only 5%, now it is about 30%. This is being done to increase the share of domestic products on store shelves, to replace imported flowers that previously came from abroad.

“I don’t think that because of the situation with Ecuadorian roses, Russian consumers will notice strong changes in the cost of flowers. Prices traditionally rise before March 8 and September 1. This year there will probably be a similar situation, but this has nothing to do with the decisions of Rosselkhoznadzor,” concludes MK’s interlocutor.