Original final report of wto

International Business & WTO

Submitted To:Mr. Muhammad Naveed

Submitted By:Danish Javaid

Muhammad Faisal AshrafMuhammad Adil

Jabran UmerSyed Uzair Amin

Department of Business Administration

Faculty of Management Sciences

International Islamic University Islamabad

International Business and WTO BBA14 (7)

Dedication

Dedicated to our parents and to our beloved teacher Mr. Muhammad Naveed without

whom

We would be unable to write even a single word.

He made us to think and think positively while observing the things in daily routine….

May Allah bless him and may he live long…

Before the world goes dullI need just one more favor

Ideas start dancing in your mindLike as if the world will die

I give you this for some helpYou take and use it well

But there’s just one problemYou broke the promise you just couldn’t keep

You told those terrible thingsBehind my furious face

I know I can’t be mad foreverI think to myself

He is a lying nitwitBut I know deep down he did it to help me, after all

I am like a sick dog nowI haven’t eaten in days

Now I know it’s time to talkSay I’m sorry and thanks

You did what I wantedEven if it hurt me

It sure beats what could have happenedIf I got more stupid

Presented By: Anonymous Group

http://www.dole5aday.com/CHARS/voices/fvapple.wav


Now I’m in treatment And I can’t thank you more

I’m feeling a whole lot happierAnd it’s all because of you!

(Thank You Teacher)

ACKNOWLEDGEMENT

All the efforts are put a name and given recognition under the head and patents of our beloved institute. This project has widespread scope to give us experience of managing our self and others in organization. We stipulate our thanks to those who render their help in data collection synchronized with guidance to put it to an end of better words.

We are deeply indebted to our supervisor, Sir Muhammad Naveed whose help, stimulating suggestions and encouragement helped us in all the time of data collection and writing of this project.




Table of Contents

Pakistan Food Industry

Post-harvest processing of fruits and vegetables Types of Apples

Company overview

Basic Information

Ownership & Capital Trade & Market Factory Information

Indonesia

History An Overview of Current Fruit Situation in Indonesia Centers of Production World's Exports Export According to Province AN OVERVIEW OF CURRENT FRUIT SITUATION Channel of Distribution Tropical Fruit Uses World's Import Industry Analysis

Russia

History Fruit Industry Biggest part of Russian fruit import is apple




Why Does Indonesia Merit Business Attention

Business Prospect for Tropical Fruits in Indonesia Reason Why Russia

Country Analysis

PAKISTAN’S FOOD INDUSTRY

The food and its allied products industry is considered Pakistan’s largest industry, and is believed to account for 27 percent of its value-added production. Trade sources estimate the sector's total value of production is over rs.46 billion (rs.58.00 equal used 1.00 at the current exchange rate). Pakistan's food industry produces cooking oils, hydrogenated vegetable oils, sugar, flour, dairy products such as milk, butter, yogurt, cheese and ice-cream, biscuits, breads and confectionery, fruit juices and fruit juice drinks, carbonated beverages, snack foods based on rice, potatoes, corn and pulses, processed chicken, jams, jellies, squashes, sauces, pickles, and some cereals and canned fruits. The fish, meat, fruit and vegetable sectors are underdeveloped partly for lack of adequate infrastructure, including storage and transportation facilities. Government policies and plans are expected to greatly increase the de If we look into Pakistan’s conditions; agriculture is the mainstay of its economy.

It contributes about 32% to the Gross National Product and accounts for 57% of the labor force and over 50% of foreign exchange earnings. More than 70% of the country’s population depends directly or indirectly on agriculture for its livelihood. Agro-climatic conditions of Pakistan ranging from tropical to temperate allowing growing 40 different kinds of vegetables and 21 types of fruits. Major vegetables grown include potato, onion, chilies, melons, cucumber, tomato, turnip, okra and pea, whereas citrus, dates, mango, guavas, apples, banana, apricot, grapes, almonds, peach, plum, and pomegranate are the main fruit crops. The other major agricultural crops are wheat, rice, cotton, sugarcane, and maize. Secondary processing technologies for these crops have been fairly developed in the country; however, so far much emphasis has not been given for primary processing (cleaning, grading, handling, drying, pre-cooling and storage, etc.) of these agricultural commodities. Therefore, tremendous losses are associated with these crops after harvest.

Post-harvest processing of fruits and vegetables




Cultivated area for fruits and vegetables are 1.141 million ha with total production of 1 1.64 million tons (Anon., 2000-2001). The table presents the area under cultivation and annual production of various fruits and vegetables. It is revealed from Table 1 that area under vegetables is 0.556 million ha with production of 6.643 million tons, whereas the area under fruit crops is 0.585 million ha with production of 4.997 million tons. Most consumption is in fresh form. Fruits and vegetables are processed to produce jams, jellies, ketchup and juices.

Fruits Area (million) Production (million tons) 0.199 1.898Mango 0.097 0.989Banana 0.03 0.139Apple 0.058 0.439Guava 0.063 0.525Apricot 0.013 0.126Peach 0.005 0.003Pears 0.003 0.038Plums 0.007 0.064Grapes 0.013 0.051Pomegranate 0.007 0.048Dates 0.079 0.613Almonds 0.011 0.033Sub-total 0.585 4.997

In Pakistan, apples have been grown as Commercial Fruit Plants in Balochistan and N.W.F.P., since long. Because of its attractive income, apple plantation was taken up by the growers in Swat, Dir, Mansehra, Parachinar, Chitral, Hunza, North and South Waziristan Agencies. District Swat covers an area of approximately 4000 square miles within the Malakand Division. The area is mainly a river valley surrounded by mountains, which also have fertile valleys feedings into the main Swat Plain. District Swat is the most important of all the apple producing districts of N.W.F.P. Next in importance come the districts of Mansehra, Dir, Abbottabad, Chitral and Hunza.

Table-1




TOTAL AREA OF APPLES UNDER CULTIVATION(AREA "000" HECTORS)

Year Punjab Sindh NWFP Baluchistan Pakistan

2003-04 0.3 0.1 8.0 33.4 41.8

2004-05 0.3 0.1 8.1 35.0 43.5

2005-06 0.3 0.1 9.2 37.0 46.6

2006-07 0.3 0.1 11.0 40.0 51.4

2007-08 0.3 0.1 12.0 42.0 53.4

Table-2PRODUCTION OF APPLES IN PAKISTAN (PRODUCTION "000" TONS)

Year Punjab Sindh NWFP Balochistan Pakistan

2003-04 2.3 0.2 85.0 466.0 553.5

2004-05 2.3 0.2 85.7 480.2 568.5

2005-06 2.4 0.3 86.5 492.5 581.7

2006-07 2.4 0.3 90.0 505.0 597.7

2007-08 2.5 0.4 100.0 600.0 702.9

Types of Apples

1. Red delicious apples2. Golden delicious apples3. Granny Smith apples4. Wine sap apples5. Gala apples6. McIntosh apples7. Rome apples8. Graven stein apples




Company overview

They are a leading company of Rice and Agro based products from Pakistan. They are the foods processor and exporters.

Basic Information

City: Lahore

Province/State: Punjab

Country/Region: Pakistan

Business Type: Manufacturer, Trading Company

Company Name: Hamdaani Foods Company

Business Type: Manufacturer, Trading Company

Product/Service (They Sell): Fruits, Rice, Spices, Pulses, Sweets

Address: Suite#3 2nd Floor RM Centre Moon Market, Allama Iqbal Town Lahore (Punjab) Pakistan.

Brands: Hamdaani, Lahori

Number of Employees: 11 - 50 People

Company Website URL: http://www.hamdaanifoods.com/

Ownership & Capital

Year Established: 2001

Registered Capital: US$501 Thousand - US$1 Million

Ownership Type: Partnership

Business Owner: Muhammad Ashraf Hamdaani

Trade & Market




Main Markets: North America Eastern Europe Southeast Asia Mid East Eastern Asia.

Main Customers: CMS Italia, zara bizness Inc.NY USA. Al Sahab Al Arabia KSA.

Total Annual Sales Volume: US$1 Million - US$2.5 Million

Export Percentage: 71% - 80%

Total Annual Purchase Volume: Below US$1 Million

Factory Information

Factory Size: Below 1,000 square meters

Factory Location: Lahore, Jaranwala Main Road 50 KM Munian Wala

No. of Production Lines: 4

No. of R&D Staff: 5 - 10 People

No. of QC Staff: 5 - 10 People

Management Certification: ISO 9000/9001/9004/19011: 2000 ISO 14000/14001




Indonesia

HistoryThe Republic of Indonesia is a country in Southeast Asia and Oceania. Indonesia comprises 17,508 islands. With a population of around 230 million people, it is the world's fourth most populous country, with the world's largest population of Muslims. Indonesia is a republic, with an elected legislature and president. The nation's capital city is Jakarta. The country shares land borders with Papua New Guinea, East Timor, and Malaysia. Other neighboring countries include Singapore, Philippines, Australia, and the Indian territory of the Andaman and Nicobar Islands. Across its many islands, Indonesia consists of distinct ethnic, linguistic, and religious groups. The Javanese are the largest and most politically dominant ethnic group. Indonesia has developed a shared identity defined by a national language, ethnic diversity, religious pluralism within a majority Muslim population, and a history of colonialism including rebellion against it. Indonesia's national motto, "Bhinneka Tunggal Ika" ("Unity in Diversity" literally, "many, yet one"), articulates the diversity that shapes the country. Despite its large population and densely populated regions, Indonesia has vast areas of wilderness that support the world's second highest level of biodiversity. The country is richly endowed with natural resources, yet poverty remains widespread in contemporary Indonesia.

Politics of Indonesia

Indonesia is a republic with a presidential system. As a unitary state, power is concentrated in the central government. Following the resignation of President Suharto in 1998, Indonesian political and governmental structures have undergone major reforms. Four amendments to the




1945 Constitution of Indonesia have revamped the executive, judicial, and legislative branches. The president of Indonesia is the head of state, commander-in-chief of the Indonesian National Armed Forces, and the director of domestic governance, policy-making, and foreign affairs. The president appoints a council of ministers, who is not required to be elected members of the legislature. The 2004 presidential election was the first in which the people directly elected the president and vice president. The president may serve a maximum of two consecutive five-year terms. A session of the People's Representative Council in JakartaThe highest representative body at national level is the People's Consultative Assembly (MPR). Its main functions are supporting and amending the constitution, inaugurating the president, and formalizing broad outlines of state policy. It has the power to impeach the president.[48] The MPR comprises two houses; the People's Representative Council (DPR), with 560 members, and the Regional Representative Council (DPD), with 132 members. The DPR passes legislation and monitors the executive branch; party-aligned members are elected for five-year terms by proportional representation. Reforms since 1998 have markedly increased the DPR's role in national governance. The DPD is a new chamber for matters of regional management.

Foreign relations of Indonesia

In contrast to Sukarno's anti-imperialistic antipathy to western powers and tensions with Malaysia, Indonesia's foreign relations since the Suharto "New Order" have been based on economic and political cooperation with Western nations. Indonesia maintains close relationships with its neighbors in Asia, and is a founding member of ASEAN and the East Asia Summit. The nation restored relations with the People's Republic of China in 1990 following a freeze in place since anti-communist purges early in the Suharto era. Indonesia has been a member of the United Nations since 1950, and was a founder of the Non-Aligned Movement (NAM) and the Organization of the Islamic Conference (OIC). Indonesia is signatory to the ASEAN Free Trade Area agreement, the Cairns Group, and the WTO, and has historically been a member of OPEC, although it is withdrawing as of 2008 as it is no longer a net exporter of oil. Indonesia has received humanitarian and development aid since 1966, in particular from the United States, Western Europe, Australia, and Japan.

Geography of Indonesia

Map of Indonesia consists of 17,508 islands, about 6,000 of which are inhabited. These are scattered over both sides of the equator. The five largest islands are Java, Sumatra, Kalimantan (the Indonesian part of Borneo), New Guinea (shared with Papua New Guinea), and Sulawesi. Indonesia shares land borders with Malaysia on the islands of Borneo and Sebatik, Papua New Guinea on the island of New Guinea, and East Timor on the island of Timor. Indonesia also shares borders with Singapore, Malaysia, and the Philippines to the north and Australia to the




south across narrow straits of water. The capital, Jakarta, is on Java and is the nation's largest city, followed by Surabaya, Bandung, Medan, and Semarang.

At 1,919,440 square kilometers (741,050 sq mi), Indonesia is the world's 16th-largest country in terms of land area. Its average population density is 134 people per square kilometer (347 per sq mi), 79th in the world, although Java, the world's most populous island, has a population density of 940 people per square kilometer (2,435 per sq mi). At 4,884 meters (16,020 ft), Puncak Jaya in Papua is Indonesia's highest peak, and Lake Toba in Sumatra its largest lake, with an area of 1,145 square kilometers (442 sq mi). The country's largest rivers are in Kalimantan, and include the Mahakam and Barito; such rivers are communication and transport links between the island's river settlements. Lying along the equator, Indonesia has a tropical climate, with two distinct monsoonal wet and dry seasons. Average annual rainfall in the lowlands varies from 1,780–3,175 millimeters (70–125 in), and up to 6,100 millimeters (240 in) in mountainous regions. Mountainous areas—particularly in the west coast of Sumatra, West Java, Kalimantan, Sulawesi, and Papua—receive the highest rainfall. Humidity is generally high, averaging about 80%. Temperatures vary little throughout the year; the average daily temperature range of Jakarta is 26–30 °C (79–86 °F).

Biota and environment

Fauna of Indonesia, Flora of Indonesia, and Environment of Indonesia

The critically endangered Sumatran Orangutan, a great ape endemic to Indonesia and Malaysia. A mega diverse country, Indonesia's size, tropical climate, and archipelagic geography, support the world's second highest level of biodiversity (after Brazil), and its flora and fauna is a mixture of Asian and Australasian species. Once linked to the Asian mainland, the islands of the Sunda Shelf (Sumatra, Java, Borneo, and Bali) have a wealth of Asian fauna. Large species such as the tiger, rhinoceros, orangutan, elephant, and leopard, were once abundant as Far East as Bali, but numbers and distribution have dwindled drastically. Forests cover approximately 60% of the country. In Sumatra and Kalimantan, these are predominantly of Asian species. However, the forests of the smaller, and more densely populated Java, have largely been removed for human habitation and agriculture. Sulawesi, Nusa Tenggara, and Maluku—having been long separated from the continental landmasses—have developed their own unique flora and fauna. Papua was part of the Australian landmass, and is home to a unique fauna and flora closely related to that of Australia, including over 600 bird species. Indonesia is second only to Australia in its degree of endemism, with 26% of its 1,531 species of bird and 39% of its 515 species of mammal being endemic. Indonesia's 80,000 kilometers (50,000 mi) of coastline are surrounded by tropical seas that contribute to the country's high level of biodiversity.




Indonesia has a range of sea and coastal ecosystems, including beaches, sand dunes, estuaries, mangroves, coral reefs, sea grass beds, coastal mudflats, tidal flats, algal beds, and small island ecosystems. The British naturalist, Alfred Wallace, described a dividing line between the distribution and peace of Indonesia's Asian and Australasian species. Known as the Wallace Line, it runs roughly north-south along the edge of the Sunda Shelf, between Kalimantan and Sulawesi, and along the deep Lombok Strait, between Lombok and Bali. West of the line the flora and fauna are more Asian; moving east from Lombok, they are increasingly Australian. In his 1869 book, The Malay Archipelago, Wallace described numerous species unique to the area. The region of islands between his line and New Guinea is now termed Wallacea.

An Overview of Current Fruit Situation in Indonesia

Centers of Production

The centers of production of fruits in Indonesia are found in Java, Bali, Sumatra, and Kalimantan. These tropical islands produce many kinds of fresh fruits to be distributed in other areas.

World's Exports

According to UNCTAD/WTO's statistics, the value of world’s export of fresh fruits and other fruits (HS 081090) in the period of 1999 - 2007 had fluctuated and experienced a decline with an average of -0.28% annually. In 1999, the export value was US$ 431.3 million, and declined to US$ 410.2 million in 2003. In 2005, it declined to US$ 396.4 million, the export value significantly increased to reach US$ 486.1 million and declined again to US$ 314.2 million in 2007.

Export trend of Indonesian fruits (SITC 057) in the period of 2000 - 2004 increased by 7.07%. In 2004, there were 10 countries as major importers of Indonesian fruits, which were: India with US$ 55,732 with a share of 36.47%, and its trend of import increased by 10.20%. Singapore was at the second place with a share of 13,03% and its import trend declined by 13.49%. Vietnam was at the third place with a share of 9.88%, but its import trend increased by 82.19%. The highest increase of export trend was to Bangladesh, which was at the 7th place, with a share of 3.04%, and a trend of 36.247%.

In 2007, Thailand was in the first place as exporter of fresh fruits with a share of 19.20%. It was followed by Spain with a share of 16.76%, the Netherlands (7.73%), France (6.62%), and the United States (5.35%). Indonesia was at the 20th place with export value of US$ 5.6 million or with a share of 1.16% of total world's export.

Indonesian Export of Fruits (SITC 058) 2004 (US$)




NO COUNTRY EXPORT VALUE %-SHARE %-TREND (2000-2004)

TOTAL EXPORT 85,879 100.00 5.201 United States 24,578 28.62 4.602 Germany 10,687 12.44 3.773 Singapore 8,368 9.74 -11.664 Spain 7,891 9.19 56.875 Netherlands 7,882 9.18 9.056 Japan 6,732 7.84 7.547 Argentine 1,972 2.30 -8.648 France 1,933 2.25 16.679 Taiwan 1,648 1.92 7.45

10 United Kingdom 1,461 1.70 1.66

According to the Central Board of Statistics, the export value of fruits included in SITC 058 in 2004 was US$ 85.879. The trend of export during the period of 2000 -2004 was 5.20%. The United States was at the first place with a share of 28,62% and trend of import of 4.60%. It was followed by Germany with a share of 12.44% and a trend of 3.77%. Singapore was at the third place with a share of 9.74% and its import trend declined by -11.66%. Likewise Argentina at the 7th place, its import trend declined by -8.64%.

Export According to Province

According to port of loading, export of Indonesian fruits (SITC 057) in 2004 and its trend in the period of 2000 - 2004 can be seen in the following table;

NO COUNTRY EXPORT VALUE %-SHARE %-TREND (2000-2004)

TOTAL EXPORT 152,809 100.00 7.071 West Java 63,560 41.59 23.182 North Sumatra 46,418 30.38 9.573 Riau 20,427 13.37 -9.594 Jakarta 8,571 5.61 8.715 South Sulawesi 3,884 2.54 -25.696 Central Java 2,470 1.62 19.677 Bali 1,931 1.26 53.028 Jambi 1,551 1.02 90.099 Lampung 1,508 0.99 -2.93

Source: Indonesian Central Board of Statistics.




AN OVERVIEW OF CURRENT FRUIT SITUATION

1. The fruit industry is still characterized as a smallholder traditional enterprise.

2. Low capital and technology input in the agribusiness system

Unselected seedling material poor cultural practices

- Land cultivation/preparation- Fertilization practices- weeding- IPM- Irrigation

poor post harvest, marketing and processing practices Poor management practices.

3. The Government of Indonesia for the last five years has put more effort into programs for developing the fruit industry, a reflection of increased fruit productivity, which rose from 7.5 tones/ha in 1988 to 13.5 tones /ha in 1995. Nevertheless, the increase of productivity was relatively low compared to fruit yield in other countries.

4. It is imperative to find solutions to the above situation ranging from production, postharvest, handling, processing and marketing.

5. With the strong political will of the Government of Indonesia, complemented by the active participation of the private sector, the prospects for fruit agribusiness in Indonesia seem bright in the future.

Channel of Distribution

The channel of distribution for fresh fruits from farmers, collectors up to customers is as follows:




Major market segments are identified and also those forces affecting demand and supply within this industry. Performance analysis includes emerging industry trends as well as recent results and performance of each key company. Drawing on the depth of information DIS also provides 5 year forecasts for this industry.

The comprehensive study also examines details such as the barriers to entry, operating cost structure, technology & systems and domestic & international markets. Tables and statistics include: Industry revenue, exports, imports, wages and number of companies in the industry, Industry growth and geographic regional data.

Tropical Fruit Uses:

Fresh Consumption:

Whole fresh Fresh fruit salad

Processed Product:

Candy Chip Crack Canned puree dried dehydrated Fruit canned in syrup jam




Jelly Powdered

Pharmaceutical & Industrial:

Papain Other to be explored

World's Import

According to ITC/UNCTAD/WTO's statistics (2007) the world's needs for fruits had fluctuated with an increasing trend of 5.95% during 1999 - 2007. In 1999, the world's import for fruits was US$ 602.3 million. It increased to US$ 650.2 million in 2003, while in 2001 it declined to US$ 644,4 million. In 2002, the value increased to US$ 703.4 million, and increased again in 2007 to US$ 774.1 million.

WORLD'S IMPORT OF FRUITS (2007) (US$ MILLION)

NO COUNTRY IMPORT VALUE %-SHARE %-TREND TOTAL IMPORT 774,136 100.00 5.98

1 Hong Kong 108,868 14.06 -1.372 China 100,974 13.04 38.123 France 73,100 9.44 -1.004 USA, PR, US VI 61,974 8.01 10.645 Germany 60,974 7.88 6.066 Netherlands 47,840 6.18 6.537 Italy 37,746 4.88 14.558 Singapore 31,963 4.13 -10.169 Russian Fed. 29,264 3.78 27.78

10 Taiwan (POC) 28,336 3.66 -6.2911 United Kingdom 28,117 3.63 15.92




12 Canada 26,132 3.38 5.2313 Indonesia 22,143 2.86 43.7514 Austria 14,666 1.89 25.1015 Belgium 14,617 1.89 6.12

The Indonesian Tropical Fruit Agribusiness has grown steadily

Production has shown substantial increase The total (values grown steadily) Production has shown substantial increase The total (value) of fresh fruit exports increased Processed fruits also contribute to exports

Indonesia's Projected Fruit Demand 1995-2015

Year Fruit demand (MT)

1995 6

2000 8

2005 10

2010 14

2015 20

Industry Analysis

Apples are the fourth most widely produced fruit in the world after bananas, oranges and grapes.

Apple production in recent years surpassed 60 million metric tons, enough to provide each person in the world with about 20 lbs of apples.

World production of apples is now about 2.5 times what it was in 1960. It rose over 25 percent between 1995 and 2005.

Apples are produced in many countries with a temperate climate. Newer varieties have permitted expansion of production into ever-hotter areas.

China is the largest apple producing country in the world. It now produces close to 40 percent of the world total.

China's apple production increased fourfold in the last decade. The rate of growth has been erratic since 2000, but absolute annual increases have been large.




The traditional center of commercial apple production was continental Europe. Europeans brought commercial apple-growing to many other parts of the world.

The United States is a distant second to China in apple production. France, Germany, Italy, Poland and Russia remain among the top ten apple producers.

Turkey, Iran and India are also major apple producers. However, most of their production is absorbed by their own rapidly-growing populations.

Major Southern Hemisphere apple producing countries include Argentina, Australia, Brazil, Chile, New Zealand and South Africa.

Less than ten percent of world apple production enters international fresh apple trade. Only a handful of countries engage in long-distance exporting.

The leading fresh apple exporting countries are China, France, the United States, Chile, Italy, New Zealand and South Africa.

A number of these countries also produce large volumes of concentrated apple juice for export.

The major import markets for fresh apples and concentrated apple juice are in the developed countries of Europe, North America and Asia.

Developing country markets such as Mexico, India and Indonesia offer great long-term potential

The Fruit Growing industry in Indonesia research report contain trend analysis, statistics, market size information, industry growth rates as well as major competitors.

KEY STATISTICS 2004 2005 2006 2007 2008

Industry Revenue 107,942 104,367 131,689 158,085 169,151 Rp.Billion

Industry Gross Product 7,016 6,784 8,560 10,276 10,995 Rp.Billion

Number of Establishments 110 120 130 130 130 Units




Employment 109,600 101,200 85,700 81,000 85,400 Units

Exports 2,856 3,457 6,481 6,521 7,820 Rp.Billion

Imports 10,926 10,899 25,482 30,419 35,880 Rp.Billion

Total Wages 1,425 1,316 1,114 1,010 1,109 Rp.Billion

Domestic Demand 116,012 111,809 150,690 181,983 197,211 Rp.Billion




Russia

History

Founded in the 12th century, the Principality of Muscovy, was able to emerge from over 200 years of Mongol domination (13th-15th centuries) and to gradually conquer and absorb surrounding principalities. In the early 17th century, a new Romanov Dynasty continued this policy of expansion across Siberia to the Pacific. Under PETER I (ruled 1682-1725), hegemony was extended to the Baltic Sea and the country was renamed the Russian Empire. During the 19th century, more territorial acquisitions were made in Europe and Asia. Defeat in the Russo-Japanese War of 1904-05 contributed to the Revolution of 1905, which resulted in the formation of a parliament and other reforms. Repeated devastating defeats of the Russian army in World War I led to widespread rioting in the major cities of the Russian Empire and to the overthrow in 1917 of the imperial household. The Communists under Vladimir LENIN seized power soon after and formed the USSR. The brutal rule of Iosif STALIN (1928-53) strengthened Communist rule and Russian dominance of the Soviet Union at a cost of tens of millions of lives. The Soviet economy and society stagnated in the following decades until General Secretary Mikhail GORBACHEV (1985-91) introduced glasnost (openness) and perestroika (restructuring) in an attempt to modernize Communism, but his initiatives inadvertently released forces that by December 1991 splintered the USSR into Russia and 14 other independent republics. Since then, Russia has shifted its post-Soviet democratic ambitions in favor of a centralized semi-authoritarian state whose legitimacy is buttressed, in part, by carefully managed national elections, former President PUTIN's genuine popularity, and the prudent management of Russia's windfall energy wealth. Russia has severely disabled a Chechen rebel movement, although violence still occurs throughout the North Caucasus.

Geography




Map references:

Area: total: 17,098,242 sq km

Land: 16,377,742 sq km

Water: 720,500 sq km

Land boundaries:

Total: 20,241.5 km

Border countries:

Azerbaijan 284 km, Belarus 959 km, China (southeast) 3,605 km, China (south) 40 km, Estonia 290 km, Finland 1,313 km, Georgia 723 km, Kazakhstan 6,846 km, North Korea 17.5 km, Latvia 292 km, Lithuania (Kaliningrad Oblast) 227 km, Mongolia 3,441 km, Norway 196 km, Poland (Kaliningrad Oblast) 432 km, Ukraine 1,576 km

Climate:

Ranges From Steppes In The South Through Humid Continental In Much Of European Russia; Subarctic In Siberia To Tundra Climate In The Polar North; Winters Vary From Cool Along Black Sea Coast To Frigid In Siberia; Summers Vary From Warm In The Steppes To Cool Along Arctic Coast

Natural resources:

Wide natural resource base including major deposits of oil, natural gas, coal, and many strategic minerals, timber.

Environment - current issues:

Air Pollution From Heavy Industry, Emissions Of Coal-Fired Electric Plants, And Transportation In Major Cities; Industrial, Municipal, And Agricultural Pollution Of Inland Waterways And Seacoasts; Deforestation; Soil Erosion; Soil Contamination From Improper Application Of Agricultural Chemicals; Scattered Areas Of Sometimes Intense Radioactive Contamination; Groundwater Contamination From Toxic Waste; Urban Solid Waste Management; Abandoned Stocks Of Obsolete Pesticides

Population

140,041,247 (July 2009)

Country Comparison to the World: 9

Ethnic groups:




Russian 79.8%, Tatar 3.8%, Ukrainian 2%, Bashkir 1.2%, Chuvash 1.1%, other or unspecified 12.1% (2002 census)

Government

Executive branch:

Chief of state: President Dmitriy Anatolyevich MEDVEDEV (since 7 May 2008)

Head Of Government: Premier Vladimir Vladimirovich PUTIN (since 8 May 2008); First Deputy Premiers Igor Ivanovich SHUVALOV and Viktor Alekseyevich ZUBKOV (since 12 May 2008); Deputy Premiers Sergey Borisovich IVANOV (since 12 May 2008), Dmitriy Nikolayevich KOZAK (since 14 October 2008), Aleksey Leonidovich KUDRIN (since 24 September 2007), Igor Ivanovich SECHIN (since 12 May 2008), Sergey Semenovich SOBYANIN (since 12 May 2008), Aleksandr Dmitriyevich ZHUKOV (since 9 March 2004), and Dmitry Nikolayevich KOZAK (since 14 October 2008)

Cabinet: Ministries of the Government or "Government" composed of the premier and his deputies, ministers, and selected other individuals; all are appointed by the president.

There is also a Presidential Administration (PA) that provides staff and policy support to the president, drafts presidential decrees, and coordinates policy among government agencies; a Security Council also reports directly to the president

Elections President elected by popular vote for a four-year term (eligible for a second term); election last held 2 March 2008 (next to be held in March 2012); note - the term length was extended to six years in late 2008, to go into effect following the 2012 presidential election; there is no vice president; if the president dies in office, cannot exercise his powers because of ill health, is impeached, or resigns, the premier serves as acting president until a new presidential election is held, which must be within three months; premier appointed by the president with the approval of the Duma.




Fruit Industry of Russia

Import of Fruits and Vegetables to Russia Has Been Increasing Since 2005

Biggest part of Russian fruit import is apple

The share of apples in Russian fruit imports is growing, according to figures from the Russian statistics service. Almost one in three fruits is an apple. Five years ago it was one in five. Russia as recorded a real drop in the total fruit imports of 6% this year.

Indonesia RussiaGDP billions $ 514.39 1607.82Nominal GDP Per Capita us $ 1,083 3074Inflation rate % 2.41 9.1Economic stability 5.51% 9.5%Population 229,566,804 140,041,247Population growth 1.360%(2009) -0.47%Current account balance million$ 257 24055Exports 91844.7 million $ 238.6 billion $Exports/GDP% 0.18 0.148Imports 1192271 million $ 150.7 billion $Imports/ GDP % 2.317 0.093External debt $151.7 billion 152 billion $




Exchange rate 0.325rub/1rs 112.739IDR/1RS

Why does Indonesia merit business attention?

1. High Internal Confidence

2. High External Confidence

3. Other

First

1. Its average economic growth: 7.0%. over the last 20 years; 7.8% in 1996.

2. Income per capita rising from less than US $100 in 1970 to more than $1000 in 1996.

3. More than twenty million people have incomes higher than US $10,000.

Second

1. Better ranking of Indonesia's global competitiveness (World Economic Forum, 1997).

2. Indonesia: 1995 : 30th; 1997 : 16th

3. Indonesia will be one of the world's 20 largest-economies in 2005 (World Bank, 1997).

Third

Indonesia is the world's fourth most populous country:

1997 200 million 2010 240 million 2015 254 million

Indonesia's Projected Fruit Demand 1995-2005

Year Fruit demand (MT)

1995 6

2000 8

2005 10

2010 14




2015 20

Rich Natural Resources

Indonesia: consists of over 17,000 islands stretching across 1,770 km N-S and 15,152 km E-W.

Has a wide range of environments, ranging from low- to high-lands, wet and dry tropical regions.

Has tremendous biodiversity, hundreds of species and varieties, providing hundreds of species and varieties, providing opportunities for customer specific variety.

Environment diversity & biodiversity provide year-round harvesting

Business Prospect for Tropical Fruits in Indonesia

1. The potential to develop tropical fruits is excellent provided that such development is targeted to an industry based on reliable production, postharvest, processing and marketing.

2. Tropical fruits are expected to be large export-income earners, so that the development of Indonesia's tropical fruits must be supported by commercial plantations. Thus, opportunities in the development of commercial orchards are tremendous.

3. Commercial orchards of fruit crops require technology inputs to the production, postharvest, processing and marketing systems. Therefore there are huge opportunities for the supply of fruit production, processing, grading, packaging, cold storage etc. equipment and facilities.

4. The main constraints to efficient production and quality improvement of fruit on a commercial scale are the knowledge and ability of human resources in adopting modern technology. Indonesia needs technical training. Opportunities exist for other interested countries to conduct courses/training for plant breeding, micro countries to conduct courses/training for plant breeding, micro propagation, marketing, harvesting, processing etc.

5. As Indonesia moves towards a market economy, its fruit situation and trade are increasingly dependent on consumer behavior. Also, the international market requires standardized high quality products. Several areas need collaboration on facilities and human resource development:

Quality assurance, standardization and certification Long distance transport Quarantine development Consumer and Promotion Development.

Reason Why Russia




Almost one in three fruits is an apple. Five years ago it was one in five. Russia has recorded a real drop in the total fruit imports of 6% this year. The fall is small compared to the total fall in imports of 41% since the beginning of the year. The fall in fruit imports is a break with the trend of the last few years, when the volume grew an average of 12%.

We are launching apple in Russia because of its increasing demand and also increase in their imports. As according to the world report Russia is at 9 th place in imports of fruits and also it is a very stable country and it’s per capital income is also very good and because of increase in imports of apples we are suggesting Pakistani exporter of fruits that Russia is a good market for apples.

