From Russia with Love/
An Interview with Tareq Awad of Fruitimpex

Though it may not be among the first places that come to mind when thinking about the international pulse trade, the Russian Federation has emerged as an important supplier in recent years, particularly for countries in the EMEA region. Efforts to improve logistics and supply chain infrastructure have facilitated the movement of peas, chickpeas, lentils and other pulses within the world’s largest nation by area (over one eighth of Earth’s inhabitable land or 17,125,200 square kilometers, to be precise). Moreover, steady increases in both international and domestic demand and the resulting strong prices have made pulses an attractive crop for Russian farmers looking for a reliable, sustainable option.

One person who understands the ins and outs of Russia’s pulse trade is Tareq Awad, Export Manager for Fruitimpex, a leading trader and exporter of grains, pulses and oilseeds in the country. Fruitimpex strives to minimize any potential miscommunication or frustration when moving products into, within and from Russia, offering on-time delivery, customs clearance, quality control, supplier selection, collection of goods from supplier warehouses, cleaning and packing of goods, and other services amid a unique set of challenges presented by Russia, including its nine different time zones, language barrier, and unique position in the geopolitical landscape.

Below is our exclusive interview with Mr. Awad, who generously shared from his breadth of knowledge to help fill in some of the gaps and encourage anyone who is interested in developing business with Russia to reach out.

The Russian pulses market may be less familiar to most GPC members than other major markets, like Canada or India. What are some facts and indicators that are important to know when considering the Russian market, for example figures related to production, import/export, seeded area, etc.?

Following the 2018/19 season, which was successful for Russia’s market of grains and pulses, the country’s producers were not ready to rest.

Russia continued expanding pulse planted acreage for the 2020 harvest at a record pace. It gained another 25% , reaching an all-time high level. Undoubtedly, this acreage expansion cannot but target peas as the country’s main pulse crop. This season’s export potential is estimated to be slightly lower, but there are doubts about its realization. The factors of global competition, restrictions in major importing countries, and a slow pace of Russian pulses exports in the first months of the season (Covid-19) still pose a risk of failure to realize this export potential in full.

For example, in the 2019 lentil market in Russia there is growing interest of domestic farmers. Despite the declining demand for lentils in the domestic market, production volumes continue to grow. In the reporting period of 2019, farmers harvested 19% more lentils than a year earlier. The high yield was the result of an increase in the acreage for lentils, the value of which in 2019 amounted to 274 thousand hectares, which is 3 thousand hectares more than last year's figure. The Saratov Region and Altai Territory became the leaders in terms of sown areas for lentils, which accounted for 54% of the total sown area. Also, this group of regions showed the maximum values for the harvest of lentils in the reporting period of 2019, having consolidated 145 thousand metric tons of the crop.

The main purchasers of domestic green lentils are Turkey, Algeria, Iran, the United Arab Emirates; for red lentils the main markets are Pakistan, Turkey and United Arab Emirates.