Activity Report EEU (Russia, Ukraine and CIS) Q4 (April - June 2015)
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1 Alaska Seafood Marketing Institute Activity Report EEU (Russia, Ukraine and CIS) Q4 (April - June 2015) July
2 1. MARKET UPDATE On June 24 th, President Vladimir Putin extended the ban against Western food imports for a year (until August 7, 2016), stating that the longer than expected measure would ensure the country's security. President Putin unveiled the extension of the ban after EU foreign ministers stated this week that sanctions against Moscow over the Ukraine conflict would be prolonged until January The general opinions of retailers are that the ban extension will not influence prices as a new network of suppliers has been built since August 2014, although other factors such as seasonality, currency volatility, inflation, and regulatory changes may affect prices. Compared to 2014, there is a larger assortment of domestic products available. In the first five months of 2015, imports of goods from non-cis countries to Russia decreased by 38.7% compared to the same period of 2014, according to preliminary data of the Federal Customs Service of Russia. In May 2015 the value of imports from non-cis countries dropped by 1.8 times compared to May 2014 and compared to April 2015 imports decreased by 7.6%. The Ukrainian market remains open to Alaska seafood, however, the market faces turbulent economic and political times. Due to the Russian food ban, supply in the region exceeds demand, which threatens Alaska s share on the market. European suppliers are trying to identify where to sell the excess product. Based on expert opinion, consumption of fish in Ukraine is decreasing. Per capita fish consumption in 2013 was 14.5 kilos and in 2014 it was 11 kilos. Market players are inclined to continue loading pinks, roe, pollock and surimi. Notably, the Russian-Ukrainian trade is facing tough times and imports from Russia were down 40% in SEAFOOD EXPO GLOBAL SHOW VISIT The Seafood Expo Global (SEG) show is the world s largest seafood trade event that serves buyers, suppliers and processing-industry professionals from over 140 countries. An ASMI representative from EEU attended the ASMI pavilion booth and reception and held a meetings with trade partners from the region. April June
3 Meeting List: RUS CAVIAR, RUSSIA: Rus Caviar continues to import some volume of Alaska roe trough Belarus where the roe is processed. They had a problem with veterinary certificates to Kazakhstan, but this problem was resolved with the help of the US Embassy in Moscow. UKRAINIAN FISH COMPANY, UKRAINE: The Ukrainian Fish Company is a leading importer of fish in Ukraine in which Alaska fish occupies an important part of their imports. The Ukrainian Fish Company loads large quantities of pink salmon, pollock and salmon roe. They seek to educate their final consumers about Alaska seafood in all 18 Don Mare fish stores all over Ukraine and wholesale clients. US EMBASSY IN KIEV, UKRAINE: A specialist at the US Embassy in Kiev at the Agricultural Trade Office (ATO) helped to organize meetings with Ukrainian importers. The Embassy is ready to support ASMI promotions in Ukraine and has done so by attending opening and closing ceremonies, and allowing the use of the House of USA for press conferences. RYBNYI SVIT OCEANIA, UKRAINE: Rybnyi Svit informed ASMI that during this turbulent time with the Russian Food Ban they have decreased their imports from Alaska but still do have inventory. They asked ASMI to support sales where possible. OPTIM ALLIANCE, RUSSIA: Optim Alliance is one of the importers in Russia who continues to import Alaska salmon caviar (code 1604). They thanked ASMI for continual support. FOZZY GROUP, UKRAINE: Fozzy Group is one of the biggest retail chains in Ukraine. They permanently carry in their store an assortment of cod, pollock, pink salmon roe and also black cod in premium segment stores. The Fozzy Group is interested in in-store promotions. April June
4 INTERNATIONAL SEAFOOD GROUP (ISG), UKRAINE: ISG is the main processor for private labels in Ukrainian supermarkets. They are considering working with Alaska salmon this season and sought more information. ASMI representatives collected 15 trade leads from the regions: Georgia, Ukraine, Belarus, Moldova and became acquainted with Alaskan seafood exporters. 1.3 PRINT OF POS MATERIALS IN UKRAINIAN Description: Due to poor political relations between Russia and Ukraine and the conflict in the Eastern part of Ukraine, the Ukrainian attitude about Russian language has worsened. As a result, ASMI EEU decided to translate and print POS materials in Ukrainian to use in our future Alaska Seafood promotions. POS materials in Ukrainian: April June
5 Results: 24,200 copies of Ukrainian POS materials were printed (10 leaflets, two brochures, and one recipe book). They are stored in Kiev and ready for use in future in-store, HRI, and trade promotions UFC DON MARE PROMOTION Results to be provided on July 20 th BLACK COD RECIPES BROCHURE DEVELOPMENT Description: Alaska black cod is a niche product that has stable demand in the EEU region. In order to give the HRI sector ideas on more diverse black cod consumption and support black cod promotions in the region, ASMI developed and photographed 10 recipes that utilize black cod. These recipes will allow development of new materials that will be distributed during black cod promotions. Pasta with crab, black cod, shrimp, cherry tomatoes. Suimono soup with broccoli, Alaska black cod, lemon. Grilled Alaska black cod in lime sauce. Alaska black cod baked in hay. As a continuation of the development of black cod recipes, ASMI designed Russian language black cod recipe brochures. The brochure will be used during ASMI retail and HRI promotions, during trade shows and representation events, and for advertorials in mass media. April June
6 1.5. WORLD FOOD AZERBAIJAN PARTICIPATION April June
7 WorldFood Azerbaijan is the leading food industry event in the Caspian region. This exhibition has occurred for 20 years. In 2015, the exhibition occupied two pavilions and an outdoor area at the Baku Expo Center. The Worldfood exhibition brought together 151 companies from 33 countries and included attendance from the President of the Republic of Azerbaijan, Ilham Aliyev, and the Minister of Agriculture, Heydar Asadov. ASMI shared a corner stand with the US Meat Export Federation (USMEF). USMEF has participated in the show for several seasons. Sharing a booth is cost effective and the partnership is beneficial to ASMI since USMEF has already taken steps to enter the market. April June
8 April June
9 There were a substantial number of visitors at the exhibition showing interest in Alaska seafood. The ASMI representative established contact with the President of The Azerbaijan National Culinary Association, some high-end restaurants, a few Chefs, HRI distributors, press, a PR agency and even the Counsellor to the Minister of Economy and Industry. Fish import in Azerbaijan is under the strict control of the Government. Currently, there is a monopoly only one company, The Caspian Fish (CF), can import and export seafood to and from Azerbaijan. The ASMI representative established contact with the CF manager and provided educational information on Alaska seafood. 1. TRADE SERVICING Around 15 trade leads from the region were collected at the Seafood Expo Global show by an EEU ASMI representative. April June
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