Vegetable producers want to supply vegetables of non-standard sizes to retail chains

The Union of Potato and Vegetable Market Participants (“Potato Union”, unites breeders, producers and processors of open field vegetables) is discussing with retail chains the supply of beets and potatoes of non-standard sizes, as well as carrots with an increased percentage of brittleness. This was announced by his representative. Information about negotiations with him was confirmed, in particular, by the representative X5 Group (Crossroads, Pyaterochka).

According to Tatyana Gubina, head of the Potato Union apparatus, small potatoes (less than 45 mm) and large beets (more than 8-10 cm) are classified as “non-standard”: their retail chains take limited, like broken carrots. She adds that custom-sized vegetables typically make up 20% to 50% of the crop, depending on the region.

At the same time, according to Gubina, such products are in demand among some buyers. In particular, carrots with an increased percentage of brittleness can be sold in packaging for juice production. In addition, non-standard-sized vegetables can also be used as animal feed, one of the suppliers points out. Gubina also points out that the acceptance by the chains of such beets, carrots and potatoes for producers is an additional opportunity to sell the goods. It’s better than just throwing it away.

“Potato Union” took the initiative to sell vegetables non-standard size for networks and brittleness due to high humidity in the central regions of Russia during the growing season of root crops and vegetables, which changed the structure of the crop, the representative explained X5 group. According to the forecast of the Ministry of Agriculture, the harvest of table beet in 2022 will grow by 8.1% to 412,000 tons, carrots – by 13.1% to 870,000 tons. Previously, the ministry predicted that the harvest of potatoes would increase by 3% to 6.8 million t.

Usually vegetables of a non-standard size cost chains twice as much, one of the suppliers explained to Vedomosti. Ekaterina Arsenyeva, Development Director of Complex Delivery, points out that first-class potatoes, washed and in a net, are sold at a price of 33-35 rubles. per 1 kg, while the second grade – 20 rubles. per kg. But, Gubina points out, small calibrated potatoes sold as “babies” are sometimes even more expensive than usual. According to Rosstat, the average consumer price for potatoes in October 2022 was 30.01 rubles. per kg, which is 48% lower than a year earlier, carrots fell 37.3% lower and 33.01 rubles. per kg.

Substandard vegetables can only be profitably sold if the company has its own processing facilities, Arsenyeva notes. In this case, according to her, such products can be cleaned, welded and sold in vacuum packaging at a price much higher than usual.

Chairman of the Presidium of the Association of Retail Companies (AKORT, unites O’Key chains, “Magnet”, Metro) Igor Karavaev explains that the standards and requirements of retail chains are due to consumer orientation, which is sensitive to changes in the characteristics of root crops. In his opinion, it is advisable to discuss the terms of supply of non-standard vegetables on an individual basis between specific suppliers and retailers. Ultimately, this affects the economic efficiency of all participants in the chain, Karavaev believes.

Alexey Popovichev, executive director of the Rusbrand association, believes that the so-called substandard goods may find demand in convenience stores and discounters. Meanwhile, retailers positioning themselves in the mid-price category, such as Perekrestok or VkusVill, are unlikely to be ready to lay out such products next to ordinary goods, because this may negatively affect their image in the eyes of buyers, the expert believes.

At the same time, he considers the initiative of the “Potato Union” correct. Popovichev recalls that the EU has previously passed along the path of reducing the requirements for the appearance of vegetables and fruits, without losing their characteristics in terms of quality and freshness.

The reason is that now, with strict requirements for the size and appearance of goods, some of the products are destroyed. And this is wrong, given the task of the Ministry of Agriculture to ensure the availability of products for the population, the expert believes.

Representative X5 The Group said the company is open to discussing the supply of non-standard products, but the decision will be made on a case-by-case basis and will be reviewed and discussed with each supplier. Requests in the network “Verny”, “Auchan”, Metro and “Magnet‘ remained unanswered. One of the vegetable suppliers says that given the growth in production, at the moment there is enough production in Russia in a standard size for chains. In his opinion, negotiations with retailers are an attempt by manufacturers to sell substandard goods at an increased price.