Organic market in Russia: organic expands without certification

For years the Russian government has been tinkering with legally-binding regulation of the organic sector, but there are still no clear rules in place. Nevertheless, the regional marketing of organic food in the few specialist wholefood stores and a number of conventional chains is developing very positively. However, of the approximately 40 organic suppliers in the region around St. Petersburg, only one is inspected by an organic monitoring organization.

(Picture: Cathedral in St. Petersburg) 

Eco-Union is the name of a Russian certification body that was founded as an NGO as long ago as 1991. Today it operates from three offices (picture) and a little kitchen in shared office premises in the centre of St. Petersburg. In those earlier days, the aim was to establish environmentally aware working practices and to influence society in favour of ecology. This led to certification which they carry out mainly in the building materials sector. Eco-Union devised the “Vitality Leaf” logo and the accompanying environmental standards – akin to the German “Blue Angel” eco-label. Around 100 products have by now been given the logo, including parquet flooring (from Tarquett), laminates, insulation material by, for example, Isover, and a recycled PVC floor covering. The Corinthia Hotel also carries the Vitality Leaf logo for energy efficiency measures, smoke-free rooms and successful waste separation.

Of the approximately 30 controlled companies, 14 are in the organic food category, in which they carry out inspections on behalf of the Italian monitoring agency ICEA. The employees Andrej Kuznetcov and Ksenia Firsova are both trained by ICEA to carry out the organic inspections on the seven registered farms and at the three processors. They include a tea company, a manufacturer of alcohol and a manufacturer of natural cosmetics. Another four companies are interested in acquiring certified status and are preparing for it. The inspection agency in St. Petersburg, that is managed by Yulia Gracheva, is also taking part in a joint project called Ecofood that involves the EU, Russia and Finland. The aim is to make the exchange of goods easier in the border region with Finland. Eco-Union’s organic guidelines, that are based on the organic guidelines of the EU, are being prepared, and they are scheduled for publication at the end of September. (Picture: Four of Eco-Union’s 15 employees below a green wall that was awarded the Vitality Leaf logo)
 

Although exports from Russia to the EU must comply with EU organic standards, these standards play no part in the local market, where the situation is rather confused. Every retailer who buys in environmentally friendly goods has a different idea of how they were produced. For some it’s about “good professional practice” or “natural cultivation”, whereas for others it’s a question of animal welfare and organic management in its purest form. Round the big cities, many farmers have abandoned traditional practices and have turned to organic agriculture. However, there is so far neither an organic farmers’ association nor any kind of organization that could consult farmers and draw up guidelines in keeping with the conditions that prevail in Russia. It would make sense to set up, for example, producer-consumer associations in which everyone has a hand in determining how production and retailing function. (Picture: Emphasis on service: prepared salads at Globe of Gourmet)
 

According to Andrej Golubkov from the retail chain Azbuka vkusa ("The ABC of Taste”), they are in the process of founding an organic manufacturers’ association - the National Bio-Union (Nationalniy Organicheskiy Soyuz). The organization is currently being set up by four retailers and three producers and has its own guidelines.

A number of smaller chains are going their own way in order to differentiate themselves from the mass market, that frequently offers goods of poor quality. Azbuka, in the Moscow region, operates 54 shops with an average retail area of 700 m². 20-30 % of the goods come from approximately 20 small farms in a radius of 200 km, some of which can be classified, according to Golubkov, as organic. The organic category includes the imported goods that carry an organic label and are, therefore, definitely organic but have to be transported long distances.

The Bakhetle Group, whose base is in the autonomous Russian republic of Tatarstan, operates 25 supermarkets with a similar premium concept. Eight of its stores are in Moscow, and their product range is geared to fresh food and convenience, and includes many naturally produced and organic goods.  Ready-made products account for 40 % of turnover. (Picture on right: A wide range of detergents and cleaning materials at Globe of Gourmet in St. Petersburg)
 

The concept of the Globe of Gourmet Group, that trades on the internet as STK-Retail, is quality and freshness. The group runs six shops in Moscow and one in St. Petersburg. Store manager Marina Ganzenko says that 10 – 15 % of the products in the 900 m² store in St. Petersburg are organic. When the store was founded in 2005, they took amongst others Globus stores in Switzerland as a model. Prepared salads, side dishes and main meals can be taken away, or you can sit on high chairs at a long table and eat them in the store.

The product range consists of 16 000 food lines. On the shelves are well known quality brands from all over the world. All the product groups include organic items, and in some groups the proportion is high and in the case of organic cereal products it is higher. Most wines, however, are not organic. But the organic offer as a whole is on a par with that in other countries: to name just a few, you find controlled organic products of brands like Vivani, Biotta, Bebivita, Alce Nero, Priméal, Moulin du Pivert, Vrai, Clearspring, and these are supplemented by organic products not only from around St. Petersburg but also from Finland and Lithuania. To ensure that the fruit, vegetables, meat and dairy products are fresh, between six and eight farmers supply directly on a daily basis, depending on the season. The store manager knows them all personally and has visited their farms. A wide range of 150 articles is available in the detergents and cleaning materials department and in natural cosmetics. The main manufacturers are Klar, Almawin, Etamine du Lys, Ecodoo and Weleda. (Picture on left: Organic Cognac in the well-stocked spirits department at Globe of Gourmet)



Marina Ganzenko (picture above on right) pays particular attention to presentation in the store. Cold water sprinkles down over bundles of herbs arranged one above the other on three levels. Various dairy products are packed round with ice cubes (picture on right), which not only looks good but also keeps the sensitive products fresh. The fresh meat is appetizingly wrapped in cellophane. At the bakery counter you can taste little samples of whole grain bread, croissants and puff pastry pockets. Five sorts of Italian ham are ready for slicing, so that whatever the customer wants can be freshly cut. Naturally, the prices in this store are significantly above the average, but there are obviously customers in Russia who can afford them and readily pay more.