President Medvedev in January 2010 signed a “food security doctrine”, which aimed at ensuring a reliable food supply, and developing domestic agricultural and fishery facilities. The government is targeting self sufficiency in several sub-sectors such as poultry pork and wheat. Moreover, Putin has engaged a land reform. For the first time in nearly a century, Russia will permit the trading of national farmlands.
Russia was severely hit by a drought in 2010 delaying the reforms and putting more pressure on domestic prices. Grain crop fell 37 percent in 2010, one fifth of planting was destroyed.
National consumption of dairy products and meat is expected to rise in the near future as income will increase. GDP is predicted to average 4.3 percent till 2015.
Getting your product into market
- Sustained business in Russia requires commitment to a long-term market strategy. A first step is to determine the type of in-market representation best suited to the company’s objectives. Consider your needs at the time you enter the market while ensuring you have sufficient flexibility to adapt as the market develops over time.
- Russia is the world’s largest country in geographic terms. Before assigning the entire market to one particular company, assure yourself that the company is capable of servicing such a geographic spread.
Regulations
- On May 2010, Trade Minister Tim Groser announced New Zealand and Russia have agreed to begin laying the groundwork for formal commencement of Free Trade Agreement (FTA) negotiations.
- Accurate documentation is vital in Russia. Failure to comply with the documentation specified by your importer/customer can lead to lengthy delays and additional expense.
- All products sold in Russia must include relevant information about the product in the Russian language. It is also recommended that bulk shipments also contain basic information written in Russian.
Opportunities
There are important opportunities to consider in Russia. However, exporters should keep in mind the vastness of the country and the specificities of the Russian business culture.
The main areas of potential for New Zealand agritech companies include:
- animal health and genetics
- fencing equipment
- dairy equipment (including milk and milk processing equipment)
- equipment and technologies for meat production
- farm management technologies and services
- agricultural consultancy services
- supply of breeding animals (cattle and sheep)
