Huge deal to move more Russian-caught salmon to nation's main consuming areas

In the middle of September 2009 Russia's National Fish Resources, a state unitary enterprise engaged in management activities in the sphere of stock reproduction, exploitation and research and subordinate to Russia's Federal Agency for Federal Property Management and the nation's Federal Fisheries Agency, and Vladivostok-based fishing giant Dalmoreproduct are planning to purchase 50,000 tonnes of pink salmon from the Russian Far East to be shipped to the western regions of the country, reports www.fishnet-russia.com (www.fishnet.ru) with reference to the Russian media sources.

According to the report, Russia's Agricultural Bank has agreed to provide RUB1 billion as a soft credit for the purpose and as per 15 September 2009 the bank has been almost through with the procedure of credit issue. The soft credit will completely finance the salmon purchases.

The fish will be sold via the Ocean federal seafood chain of affordable fish stores which are now 52 in number. However, at a still greater extent the Russian Federal Fisheries Agency counts upon the retail chains with one of them, X5 Retail Group, already showing interest in the project along with Moscow's fish processing combine Meridian, large retail chains in Tatarstan and Rostov.

In the middle of September 2009 the project's organizers were completing making agreements with owners of coldstore facilities. In particular, they have already signed a contract with Khomyakovsky Khladokombinat which will receive purchased fish for storage.

Repercussions

According to Vice-President of Vladivostok Fishermen's Association Mr. Dmitry Dremlyuga, the news about the state seafood purchases has already encouraged a rise of prices for pink salmon from the Russian Far East by RUB7.00-8.00 per kilo from the level of RUB25.00-30.00 per kilo earlier paid by wholesalers to the fishermen.

Russia's Federal Fisheries Agency says that the main purpose of the fish purchases is to help fishermen of the nation's Far East get more acceptable prices for harvested fish. Earlier reports say that the record high salmon harvest this year (ca.500,000 tonnes) has resulted into a nearly double fall of purchase prices for fish.