Russian manufacturers are facing difficulties procuring cans due to a shortage of the tin plate needed to manufacture them.
The looming potential shortage is occurring at the same time as a rise in canned fish consumption in the country as consumers shift to cheaper products and seek food with better long-term storage capability amid rising prices and economic uncertainty due to international sanctions implemented following Russia's invasion of Ukraine.
The Russian Federal Agency for Fisheries warned the price of tin plate has risen sharply, causing a subsequent rise in can prices, which are up 83 percent since the start of the Russian invasion of Ukraine. This, in turn, has contributed to a 28 percent increase in the cost of canned seafood in Russia, according to estimates by the industry trade group The Fishery Union.
Historically, Russian companies have imported cans and tin plate from a few countries in Europe – primarily Germany – as well as Japan and China. However, sanctions imposed on Russia in the days following its invasion of Ukraine have closed off access to every trading partner except those in China. But Chinese supplies are not enough to meet existing Russian demand, and while Russia has its own facilities to manufacture cans, they are not producing sufficient volumes to meet overall domestic demand.
Russia’s Ministry of Industry and Trade has responded to the problem by launching an initiative to purchase tin plate from Belarus, one of the few countries that has remained friendly to Russia. Belarus’s Miory-based metal-rolling plant has a low workload, according to the trade body, and can possibly fill the gap. The ministry has initiated contract negotiations with the plant to enhance its exports to Russia.
The impact of the can shortage on Russia's seafood industry has been exacerbated as more Russian consumers are shifting their purchasing preferences to cans as a result of the economic difficulties the country is facing. Data from the Federal Agency for Fisheries indicates production volumes of canned seafood in January and February 2022 increased 20.1 percent compared to the same period in 2021, reaching 31,000 metric tons. However, that growth rate has slowed, as there was an 11 percent decrease in production in April 2022 compared to April 2021, which the agency attributed to a hike in prices.
Russian shoppers are also seeing higher prices for cooking oil, vegetables, sugar, and spices, the agency reported.
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