Demand for food processing machinery in Russia
The ban on imports of food, along with the Russian government’s import substitution policy, means that the Russian food industry will continue to develop and expand in a favorable competitive environment, incentivizing investment in modern technology for processing and packaging
As the local supplier base for machinery remains relatively small, the current trends open opportunities especially for foreign companies. Great demand for foreign technologies in Russia remains, and there is a special need for further optimization of the production of consumer goods, food and packaging.
On average 70% of the equipment in food processing industry is imported (2020).
In some companies, almost all the food is produced with foreign equipment. The highest level of imported equipment is used in the following industries:
- meat and poultry industry (94.0%)
- sugar industry (81.0%)
- filling, packaging and weighing (79.0 %)
- dairy industry (70.0%).
Import volumes remain stable even during the current economically unstable situation.
Russian companies are loyal to European products. Only 7% of Russian enterprises want to purchase local equipment due to low technological base.
German manufacturers continue to lead the list of suppliers of food and packaging machinery in Russia (130.96 mn in 2019). However, Finland has a good reputation of being an agricultural country with high quality food production, which gives the Finnish companies a competitive advantage.
COMPANIES AND SECTORS BENEFITING FROM THE OPPORTUNITY
Finnish food processing machinery and equipment producers
SOLUTIONS OR PRODUCTS NEEDED
The best opportunities exist for high value-added processing and energy-efficient equipment in of the following sub-sectors:
- Dairy processing and packaging equipment
- Slaughtering lines
- Meat and poultry processing equipment (the highest demand is in turkey processing and packaging)
- Industrial floor cleaning and other cleaning equipment
- Washing systems
- Fruit and vegetable processing and packaging equipment
Baking equipment, both for small bakeries and large bread-making factories
TEAM FINLAND ACTIVITIES AVAILABLE FOR FINNISH COMPANIES
There are several food fairs in Russia such as ProdExpo (February 2022) and WorldFood September 2021) in Moscow and Peterfood (November 2021) and Interfood (April 2022) in St.Petersburg.
Highly recommended is also AgroProdMash (October 2021), international exhibition for equipment, technologies, raw materials and ingredients for the food processing industry.
On those fairs food processing industry is widely represented. Finnish-Russian Chamber of Commerce can organize meetings in the fairs.
Finnish Business in St. Petersburg will be held on 02.12.2021. The event will be an excellent place for Finnish companies to meet potential buyers and to get new useful contacts.
If you are interested in the Russian market, please contact the Finnish-Russian Chamber of Commerce (FRCC) in St. Petersburg to get advice of where to target and who to contact. FRCC can also organize meetings with potential partners in Russia. Regarding Russia, it is important to be proactive and offer solutions to the market.
Senior Advisor, FRCC St. Petersburg
+7 (921) 796 0338
READ MORE ABOUT THIS OPPORTUNITY
Food production and processing represents a key component of Russia’s economy. The food and food processing industry accounts for 11.5% of the total output in Russia and consists of more than 30 industries including more than 44,000 active organizations.
Russia has the eighth largest market for packaged food products with 27.5 million tons of trade volume. Beverages (alcoholic and non-alcoholic) trade volume is 26 billion liters.
According to Euromonitor the turnover of food production industry in 2018 was 6800 bn RUB (approx. 75 bn EUR) and showed +7 % increase in 2019 and -2% decline in 2020.
Main segments aremeat & meat processing, milk products, bakery products.
In 2014, the ban of a list of agricultural products from several countries led to a substantial increase in the demand for Russian-made food products. The import substitution was brought high up on the agenda and the food processing industries were pushed to use locally produced raw materials, which reflected on a rising demand for modern food processing machinery.