Finnish food processing machinery to Russia
Governmental program in Russia aiming at increasing domestic food production boosts demand for food and beverage processing machinery. This creates opportunities for Finnish companies.
In 2014, the Russian government imposed a food embargo on imports of meat and dairy products, fish, fruit and vegetables from the EU. The import ban, coupled with changing consumption patterns, further boosts demand for food and beverage machinery.
Russia invests heavily in domestic production
The food ban brought import substitution high on the agenda of the Russian Government. The food processing industries were pushed to substitute traditional ingredients with locally produced raw materials, reflecting on rising demand for modern food processing machinery. As a result, the demand for Russian-made food products has increased substantially.
Already in 2013, Ministry of Agriculture of Russia developed a “Strategy for the Development of the Food Processing Industry of the Russian Federation until 2020”. The strategy aims at increasing production volume, investing in modernization and expending the capacity of food manufacturing enterprises, as well as increasing competitiveness of Russian products with the purpose of import substitution and export potential development. To reach these goals, the Government estimated that an influx of investment of EUR 5.7 – 11.1 billion (RUB 400-778 billion) will be needed to replace obsolete equipment, upgrade food processing, introduce bio- and nanotechnologies, improve efficiency in production facilities by (up to) 85%, and implement innovative engines and labor efficiency.
The Russian Government has allocated EUR 8.1 billion (RUB 568,2 billion) for the period of 2015-2020 to further boost domestic food production.
Finnish companies are well placed to benefit from the opportunities created by Russia’s rapidly growing food and beverage sector, particularly in the following areas:
- Packaging equipment
- Equipment for dairy industry
- Equipment for bakeries
- Slaughtering lines
- Complete meat processing lines
- Industrial floor cleaning / cleaning equipment, washing systems
Seize the opportunity – join Networking event in St. Petersburg
Finland has a good reputation in Russia as an agricultural country with high quality food production. However, there is already a high level of foreign competition and Russia is also investing in the domestic production of agricultural and food processing machinery and equipment. Finnish suppliers should therefore act quickly, especially those companies that have not established their presence in Russia yet.
Entering the Russian market usually requires finding a good Russian partner or establishing a subsidiary company. Cooperation with other Finnish manufacturers looking to enter the Russian market can also be a good way to save costs as well as an opportunity to provide Russian clients with the complex solutions that they often value greatly.
To facilitate Finnish companies’ market entry, Registered Association Finnish-Russian Chamber of Commerce (FRCC) organizes a Networking Event in St. Petersburg in June 2017.
For further information, please contact:
Irina Krasnova, (RU, FI, ENG)
+7 812 322 2121