However, according to him, with tulips, this state of affairs has been preserved for the last 5-7 years. “This has nothing to do with sanctions, nor with coronavirus, nor with other events. It’s just that import substitution really took place in this segment of the flower industry. In Russia, you can count several hundred Tulip growers – this is a fairly small profitable business,” Antipov explained.
During the last five years, the main Russian producers and importers have focused on the supply of roses (49% of the market), chrysanthemums (15%), carnations (11%), gerberas which also represent a significant part (up to 8 %), according to Rosselkhozbank. Sales of tulips are seasonal and timed to coincide with International Women’s Day, they occupy about 10% of the market: more than 150 million pieces are sold in the first week of spring. On average, in Russia there are two or three bouquets per person per year.
But the leader in demand among Russians, regardless of the holiday, is still a rose, says Natalya Davydenko, head of the Interagro Crop Production department. Flowers such as gerbera, lily, alstroemeria also began to be in demand. There is a steady increase in demand for flowering potted plants, such as the chrysanthemum or miniature rose. After all, such flowers delight the owner for much longer.
The Ministry of Agriculture told RG that overall in the past five years, flower production in the country increased by 68%, from 200.8 million pieces in 2016 to 338.9 million pieces of flowers. and cocoons in 2021. Alexey Antipov predicts that this year the volume will be about the same, between 300 and 350 million pieces. But according to estimates by the Russian Agricultural Bank, the country’s flower production may grow to 500 million pieces by the end of this year, and the share of Russian growers in the domestic market may grow to 25%. In the medium term, it is possible to reach the 50% mark, according to the bank.
In 2023, the capacity of the Russian flower market will be 2 billion pieces. At the same time, there will be changes in the structure and logistics of imports. If in the last four years the Netherlands (34%), Ecuador (33%), Belarus (9%), Kenya (8%), Colombia (6.6%) supplied flowers to Russia, then in 2023 the market will be supplied from the flowers. with Russian manufacturers, as well as countries in South America and Asia, the volume of deliveries from Turkey, Belarus, Armenia and China will increase, predicts the Russian Agricultural Bank.
The share of the domestic flower in the Russian market is now only 17% compared to 83% represented by imports, says Alexei Antipov. According to him, the main suppliers of floral products to Russia are Kenya and Ecuador. These countries have all the conditions to provide us with a cheap flower: low cost and cheap customs clearance. This causes economic damage to Russian producers and does not allow the industry to develop, Antipov believes. In this regard, at a meeting of the commission of the Ministry of Economic Development, the association proposed to conduct an anti-dumping investigation within the framework of the Eurasian Economic Union, as a result of which it would be possible to increase the import tariff. rate from 5% to 15%. According to Antipov, the association has already gained support from flower growers in Armenia, Belarus and Kazakhstan.