Russia's leading fish players trying to monopolize import from Norway and Vietnam

November 17, 2011 10:37

Big Russian importers of Norwegian salmon are trying to persuade their suppliers to switch over to exclusive five-year contracts. Other market insiders say that such position could result into a smaller number of market players, lower competition and higher prices, reports

More specifically, the Fish Union incorporating 22 importers and seafood processors (including such giants as ROK-1, Santa Bremor, Agama, Defa and Viciunai) has addressed Russia's Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor), Federal Antimonopoly Service and other players with an open letter saying that large market participants (e.g. Russian Sea, Northern Company, Atlant-Pacific, Tekhnolat) who are members of Moscow-based Association of Fish Processing and Trading Companies "are trying to monopolize shipments of fish products from Norway and Vietnam". The companies in question thus dictate the system when one Norwegian exporter would have only one Russian importer, the letter says.

Vice-President of the opponent Association Mr. Vitaly Kornev responded to the claim saying that the association's members came to conclusion that in a situation of strong price fluctuations (from USD 8.50 per kilo of trout in 2010 to USD 3.40 in October 2011) it would be more economical to build longterm relationship with suppliers based on exclusive contracts enabling the sides to plan volumes of production and purchases.

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