VEGETABLE WAR DECLARED ON EUROPE

Germany has identified the source of E.coli infection. According to official reports, grain legume shoots are responsible for the deadly infection. These include lentil, soya, pea and bean shoots, newspaper Corriere della Sera reports.

Such a statement has been made by the director of the Robert Koch institute of microbiology in Germany, Reinhardt Burger. In a meeting with representatives of the federal agency for the protection of consumer rights he said, "The people who have been eating the said shoots started feeling unwell". According to him, German cucumbers, tomatoes and lettuce "do not pose any health risk". We recall that the Germans had initially blamed the outbreak of the intestinal infection on Spanish vegetables, but now the Spaniards have been fully cleared. Sprouted bean seeds were also found in the federal land of Rein-Westfalia where they were brought from a farm in Lower Saxony. Three employees contracted the infection at the farm. It is unclear how the infection got to the farm, especially considering the fact that all sanitary and safety measures were rigorously observed. The German agriculture minister has said there were no problems with the agricultural producer from Lower Saxony. 

However, the European Union has raised complaints in relation to Russia which has introduced a ban on the imports of European vegetables after the discovery of E.coli in Europe. The ban is still in force (as of 13 June when our magazine went to print). Although 32 people have already died and around 4,000 people have been taken to hospital in Germany, Brussels hopes that Russia will lift the ban soon. A certain agreement to that effect has already been reached at the Russia-EU summit. President Dmitriy Medvedev has told a news conference at the end of the 27 June summit in Nizhniy Novgorod that Russia was ready to resume imports from the European Union provided there were relevant guarantees from the EU. "We have discussed this issue. It is quite acute and has a commercial nature. We have discussed the procedure for resuming the supplies of European vegetables to the Russian market. We are ready to resume the supplies if there are guarantees from competent EU services". For that to happen, the president said, "a certificate must be agreed confirming the safety of the produce imported to Russia". In this connection, the chairman of the European Commission, Jose Manuel Barroso, has said the "EU is ready to send a draft certificate to Russian colleagues for approval as early as today or tomorrow". But Russia has yet to provide a response.

Russia's chief sanitary doctor Gennadiy Onishchenko had said at the end of the summit that Russia would lift the ban on the imports of every batch of vegetables from Europe in exchange for European Commission guarantees. "The European Commission has suggested that we work not on the national level as is the case now, but at the level of the commission, whereby guarantees will be provided for separate countries and separate types of produce," he said. Onishchenko added that "after relevant guarantees are provided, including laboratory tests, we will resume imports".

Meanwhile, there is clearly a reason for Europe to be frustrated. European Union countries, including the economically backward PIIGS - Portugal, Ireland, Italy, Greece and Spain - are losing about 200 million Euros a week due to the embargo on the export of fruit and vegetables even though it was never proved that fruit and vegetable produce was the source of the infection. At the same time, representatives of the European Commission are estimating vegetable exports from the European Union to Russia at 3-4 billion Euros a year. This amount is unlikely to save EU crisis banks. It also works as an additional factor of instability in the region. And Europe continues suffering losses. According to British Sky News, the farmers whose businesses have been affected by E.coli will receive a compensation that is significantly lower than the losses they have incurred. Spanish farmers, for instance, demand complete compensation, but are likely to be offered a 30 to 50 per cent at best. The European Union, which is going through a difficult period, will have to spend around 150 million Euros on compensations alone, but experts think this amount is far smaller than the actual losses.

In general, Europe has condemned the Russian embargo as being disproportionate and politically motivated. There are suggestions that Russia has seized the opportunity in order to support its own farmers. Criticism of the Russian authorities has also been expressed by the Russians proper who have said that the ban on the imports of European fruits and vegetables will lead to a sharp increase of their prices and, consequently, inflation. Indeed, Europeans appear to have drawn the right conclusions, thinking that Russian farmers have made their stakes on domestic produce. The Russian minister of agriculture, Yelena Skrynnik, believes that the ban on the imports of vegetables from the EU will not have a major impact on the domestic market. The minister added that around 70 per cent of annual imports of vegetables occur in the winter and spring seasons, while in June Russia starts picking its harvest. So the ban will not take a toll on the situation in the domestic market". On the other hand, Skrynnik stressed that the domestic demand would be met not only by Russia's own vegetables but also by supplies from CIS countries, including Uzbekistan, Azerbaijan, Tajikistan, Kazakhstan, as well as Turkey, China and Iran.

However, Russian entrepreneurs have shared the disappointing forecast regarding the shortage of fruits and vegetables in Russia. They think farmers will cash in on the anxiety to raise prices. Taking this into consideration, owners of major grocery shops intend to revise their imports. They are saying there is not too much Russian produce on the market other than potatoes and carrots. Therefore, imports from Azerbaijan, Turkey and Israel will have to be increased. There are more and more cucumbers from Belarus and Ukraine in Russia now. However, they do not look as nice as the produce from EU countries, not to mention poorer packaging and storage standards. Such cucumbers cost a lot less than Spanish ones, for example. 

The increase in the supplies of Azerbaijani fruits and vegetables to Russia is confirmed by Azerbaijani entrepreneurs who think the battle for the Russian vegetables market will continue for the rest of the summer. This means that the season is effectively wasted for EU producers. As a result, Russian retailers are already considering using other suppliers of vegetables, including Ukraine, Azerbaijan, Turkey and Egypt. At stake are contracts on the supplies of 1.1 million tons of vegetables worth 600 million Euros. According to the head of a department at the Ministry of Agriculture of Azerbaijan, Sabir Valiyev, unlike Russia, Azerbaijan does not import vegetables from Europe. "Only apples are imported from Spain, and they are clean. We rigorously check them. It is mainly the local produce, as well as certain fruits and vegetables imported from Turkey, Iran and other neighboring countries, that is offered for sale in Azerbaijan," the Ministry of Agriculture official has said. 

At the same time, Azerbaijan can take advantage of Russia's ban on vegetable imports from Europe. According to Valiyev, Azerbaijani exports of fruits and vegetables to this country may be increased by 20-25 per cent. Every year Azerbaijan exports vegetables worth 200 million manats to Russia.

Some economists think though that this may lead to a rise in prices on crop products in Azerbaijan. But there are no grounds for concern so far.

Relevant institutions in Azerbaijan have said that no cases of infection transmitted through vegetables have been registered in the country. The head of a unit at the Center of Hygiene and Epidemiology, Imran  Abdullayev, recommends for prophylactic purposes that fruits and vegetables be washed before consumption.

Meanwhile, a 32-year-old woman has died of Е.coli infection in Georgia. She got down with the disease after traveling to London. Ten more people suspected of having the E.coli infection have been taken to the infectious diseases department of the Tbilisi city hospital. Another case is reported to have been registered in Egypt. A 34-year-old tourist from Germany who was resting in Marsa Alam was taken to hospital but fled there. In Europe itself, the vegetable epidemic has reached France. One case has been officially confirmed, while 12 other people are suspected of having the disease.