Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Monday, February 11, 2008

St. Petersburg sights and sounds

It has been a couple of gray days in St. Petersburg, but certainly not as cold here (low 30s) as in I read about in the U.S. midsection. A big day of retail tours, with ample number of U.S. apples and pears on display.

It was interesting to note that St. Petersburg retailers - when they attempt to - struggle quite a bit with getting the country of origin labeling information correct. Market observers say this is no deliberate attempt to misinform, but rather the challenging of rotating signage when produce rotates. A sign of things to come in the U.S.?

Some observations....
* I saw cherries at $50 per kilo at an upscale grocer here today. Wow. There are some consumers here who are not price sensitive in the least
* The growth of supermarket retailing is doing away with some of the psychological baggage of Soviet era food shortages. With modern upscale retail shops with ample and overflowing bulk and packaged food displays, consumers are becoming accustomed to more abundant choice, if at a higher cost.
* Finding the right fit between exporter and importer seems to be crucial in the development of the market. Does an exporter feel more comfortable selling a couple of containers a week to three or four importers, or does he feel sufficiently confident to give 10 or 11 containers a week to a single large importer. These questions aren't easy, and exporters would love to be able to rely on a comprehensive credit report from the Red Book or the Blue Book as they evaluate their options. Unfortunately, that's not possible now.

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St. Petersburg Retail Tour

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