Costs have increased.
🌞 Summer Savings in Russian Fruit and Veggie Aisle - A Mixed Bag 🍉🥕
This year, the Russian fruit and vegetable market seems to be following an unusual pattern. Although summer's here, and traditionally prices should be dropping, that's not the case for all items. Let's dive into the reasons behind this trend.
According to research by NTech, prices for popular vegetables and fruits have taken a downturn by 1-12% over the week alone, with nectarines, peaches, apricots, strawberries, and cherries showing the most significant decreases. However, a stark contrast prevails when compared to the same time in 2024, as almost all positions have noticeably increased in price. This twist can be attributed to a hike in costs for Russian producers and challenges with foreign suppliers.
For a better understanding, let's examine the variables that play a pivotal role in this unusual price shift:
1. Mother Nature's Mischief- On the apple front, a dreadful prophecy of a harvest scarcity circulated, which led to decreased supplies from producers last year. This time around, unfortunately, there were three waves of return frosts, potentially slashing yields by 15%. And it's not just apples; the cherries, apricots, and peaches scenario is similar.
2. A Hungry Market- Despite the higher prices, there's no sign of consumers losing their appetite for fruits. Purchases in this category are up by more than 20% year-on-year [1]. This steadfast demand keeps prices high, even during seasonal drops.
3. Inflation - The Hidden Thief- Inflationary pressure is affecting every cranny of the food industry, increasng production costs and, consequently, retail prices. In 2025 alone, food prices in Russia have surged by 16% year-on-year [2].
4. Supply Chain Challenges- The European Parliament has imposed hefty tariffs on Russian fertilizers and agricultural imports, raising production costs in Russia and, subsequently, retail prices for fruits and vegetables.
So, while prices drop for certain items as we transition into the heart of summer, many others like apples and strawberries remain steeped in higher prices due to limited supply, robust demand, overall inflationary pressures, and international trade barriers.
However, there's a silver lining. Economists forecast a price reduction moving into July as local harvests surge, bringing down the costs of seasonal fruits, vegetables, and berries in the summer months [4]. But for now, it's all about navigating through this peculiar produce market!
[1] Kommersant (Interlocutor of "Kommersant" in one of the gardening farms notes that last year, fears of a shortage of harvest were formed on the market)[2] Bloomberg (Food prices in Russia are experiencing broad inflation pressure, with fruit and vegetable prices up by 16% year-on-year as of early 2025)[3] European Parliament (The European Parliament has imposed steep tariffs on Russian fertilizers and agricultural imports)[4] Rosstat, NTech Analytics, and other sources (Seasonal price reduction traditionally makes products more affordable for wide layers of the population. Economists forecast cheaper apples, pears, carrots, radishes, garlic, potatoes, onions, and fresh herbs due to this natural surplus in the summer months)
- Despite the summer season, prices for food-and-drink items like apples aren't reducing as expected due to the limited supply caused by three waves of return frosts and last year's harvest scarcity.
- The retail sector is witnessing a rise in sales of lifestyle products, such as fruits, as consumers continue to show a 20% year-on-year increase in purchases, even with the high prices.
- In the finance and retail industries, inflationary pressure has led to a 16% year-on-year surge in food prices in Russia, affecting the cost of fruits and vegetables in particular.
