Finnish Aquaculture Products and Technology to Russia
Russia is developing its aquaculture sector not only to replace the lost fish imports caused by the food embargo (August 2014), but also to increase the share of the domestic fish production from 155 300 tons (2013) up to 315 000 tons by 2020 when the share of the domestic fish products is expected to be 80%.
To support the development of the industry, the Russian ministry of agriculture approved a federal program in January 2015 for commercial aquaculture. The program covers the years 2015 -2020. Financing for the program has been allocated from the federal budget as follows; 52, 6 Million Euros in 2015, 56, 1 Million Euros in 2016 and 57, 9 Million Euros in 2017. Also some of the sectors import duties have been temporarily cancelled e.g. fertilized fish eggs with zero rate for three years (until 30 April 2018). Lowering fish breeding equipment duty, now 15%, is under consideration.
Russia’s aquaculture industry has shown strong signs of growth
Compared to 2013 the production volumes increased by 10% in 2014. Following examples showcase extensive growth targets: In Karelia, the regional industry development plan for 2018-2020 has set a goal for 20 new fish farms for the production of salmon and trout, with annual production of 30 000 tonnes for trout and 70 000 tonnes for salmon. Another example being Russian Aquaculture, one of Russia’s largest seafood producers, planning to invest 184,2 million Euros in fish farming by 2020 enabling a production four times bigger than today.
There are investment and development needs throughout the whole value chain
The starting point for the industry’s development is interesting from the Finnish aquaculture companies’ perspective. The Russian fish farming facilities and equipment are outdated and there is lack of qualified staff. There are investment and development needs throughout the whole value chain: aquaculture companies in fish farming and processing, suppliers, wholesale and retail.
Finnish aquaculture companies have vast expertise and environment oriented fish research, high quality raw materials and new technology. Finnish industry can supply fish feeds, seeds and fertilized eggs, pond management and fish husbandry and fish farming equipment. New energy efficient and clean technologies e.g. recirculating aquaculture systems, solutions for polluted and wastewater treatment and techniques to restore endangered fish species can be offered to the Russian market. Also aquaculture specialist education is available.
Seize the opportunity!
The geography offers Finnish companies logistics advantages to export Russia. Several Finnish aquaculture companies already enjoy a solid reputation at the market, with a production capacity of 1 million hectares fish breeding water offering potential for 1, 5 million tons per year.
To grasp this aquaculture business opportunity in Russia, Registered Association Finnish-Russian Chamber of Commerce (FRCC) organizes a Networking Event in St. Petersburg in April 2017. Mark the event already now to you calendar.
For further information, please contact:
Irina Krasnova, (RU, FI, ENG)
+7 812 322 2121