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Current developments in the Russian organic market

by Redaktion (comments: 0)

In Europe, Russia is considered to be one of the worst performing countries in terms of the turnover of organic food. According to the USDA Foreign Agricultural Service, in 2012 sales of organic food in Russia amounted to 148 million US dollars, which represents growth of 7.8 % compared with 2011. Turnover in 2015 is expected to reach 225 million US dollars. Experts are predicting that the agricultural sanctions imposed by Russia on  Europe that came into force in 2014  - banning the Russian Federation from importing cereals, meat , fruit and vegetables from  EU countries -  will not only raise the productivity of conventional agriculture but also benefit the market conditions for domestically produced organic raw materials and products. In Russia, interest in sustainably produced goods and services is increasing all the time.

For the last two years, the International Eco Bio Salon has been held at ProdExpo, Russia’s biggest food fair, that takes place every year in February. In addition to this event, in September 2014 at Russia’s second biggest food fair, World Food, there was a separate pavilion in the category Organic & Health Foods (pictures on left and right). The 20 exhibitors included some Russian manufacturers of naturally and sustainably produced products such as the fruit bar manufacturer “take a bite” and the manufacturer of stevia products stevia.ru. As the most important representative of the organic sector in Russia, the eco network and consultancy Agrosofia had its own stand, where you could get information about Russian organic agriculture and see packaged organic cereal products displayed by Russian manufacturers (wheat, rye and spelt).


Among other things, via the company Eco-Control, Agrosofia offers certification modelled on the EC Organic Regulation. Also distributors of imported EU-certified goods took advantage of the Organic & Health Foods pavilion to present their products, an example being the Russian distributor of Cocowell, the Austrian manufacturer of organic coconut water. Even though there were no clearly defined criteria for inclusion in “Organic & Health Foods”, the fact that an independent category was being created at the main trade fairs was evidence of the growing importance of organics in the Russian food market.

EkoGorodExpo, held from 21-23 November for the third time in the Tishina exhibition centre  in Moscow, is developing into a trade fair specializing in organics. The aim of the exhibition is to bring together the people manufacturing and trading organic goods and foods and providing eco services. The last event in April 2014 was attended by 124 exhibitors with 220 brands from 34 countries.

In the conurbations of Moscow and St. Petersburg, you find an increasing number of online shops, restaurants, retailers and food chains that either specialize in organic food and healthy, sustainable products/meals or have integrated them into their ranges. This process has led to the structure of the organic market developing differently from that in Germany, for example, with its exclusive specialist trade. The organic offer in the specialised trade in Russia is growing in parallel with the organic product ranges found in the conventional trade. The reason for this state of affairs is, among other things, the fact that there are still no legal stipulations for the manufacture and labelling of domestically produced organic goods. Russian manufacturers and traders can call their products “organic”, “eco”, “ecological”, “sustainable” and “healthy” without any obligation to refer to verifiable and unified standards. Moreover, the retail price of imported EU-certified organic products is 100-600 % higher than the price of conventional equivalents. (Picture: Wholefoood store in St. Petersburg)

This is the reason why the majority of imported products are found in high-end retail chains like Asbuka Vkusa andZelenye Perekrestok, that offer a wide range of organics at high prices. There are 20 well known stores in Moscow and four in St Petersburg specializing in organics. Prominent European organic brands in Russia are the products of Beutelsbacher, Naturata, Ökovital (DE), Höllinger (AT), Sonnentor (AT), Alce Nero (IT). The major brands you find in the non-food segment are Weleda andAlmawin (DE) and Ecover (BE). Ca. 90 % of organic food in the retail trade is currently imported from Europe, and an estimated 350 foreign brands are available in Russia - mainly imported goods from Germany, Italy, France, Poland, Scandinavia and Great Britain. We simply don’t know the number of domestically produced “eco goods”. Traders in the fresh food segment in particular focus on regional products – “fermerskie produkty” in Russian. Fermerskie produkty means organic and nature-based production and high-quality produce. However, because of the lack of standards and controls, consumers have no reference criteria for organic production.
(Picture on right: Organic delivery service in St. Petersburg)

Currently, there are at least 14 Russian organic importers operating in Moscow, and they include Arivera (brands: Beutelsbacher (EOS), Alce Nero), Organic Trade (brands: Klar, Almawin) and Intreid Rus (brands: Biogourmet, Völkel). Seven up-market retail food chains with over 160 stores in Moscow and the regions offer some organics integrated into their product ranges and some collected together as EU-certified organic products. The most prominent retail food chains with an organic product range include Asbuka Vkusa, Globus Gourmet and Zelenye Perekrestok. The organic offer in Moscow is supplemented by 20 specialist retailers in small shops (50-150 m²) in central locations. The specialist outlets include three shops belonging to Organic Market, Biostoria – the retail arm of the importer and wholesaler Arivera - and Bio-Market, which is the oldest specialist organic shop in Moscow. Sustainably produced Russian and imported organics are offered by an estimated 30 – 40 online shops with their own home delivery service, examples being myfresh.ru and bionicamarket.ru. (Picture)

The most recent big event for the development of organic agriculture in Russia was the forum “Organic Farming in the Agricultural Sector in the Russian Federation”, that was held from 28-29 August 2014 in Simferopol in Crimea. The organizer was the “Organic Agriculture Union” (Sojuz organitschekovo zemledenja), founded by a working group of the Duma, and the aim of the forum was to bring together experts to discuss how to devise national standards for the production of organics in the Russian Federation. Taking part were not only representatives from business and production but also delegates from the regions of Russia and the Russian Ministry of Agriculture.
There continues to be no legal foundation for the production, manufacture and labelling of Russian organic goods. It has been announced that a draft law introduced by the Russian Ministry of Agriculture on production, manufacture and labelling of organics will come into force during 2015.

(Picture on right: Detergents and cleaners are imported from Western Europe)

Domestic organic production has huge potential. Experts talk of 40 million hectares of fertile land that can be used for organic agriculture. But as long as there is neither regulation nor promotion by the state, the innumerable Russian products declared as “eco” and “bio” will mingle with imported certified goods in a lawless space that attracts a high level of investment. There is still nothing to help the growing number of organic consumers and Russians interested in a sustainable lifestyle to understand precisely what “organic” means. According to a survey in 2013 by the Leibniz Institute for Agricultural Development in Central and Eastern Europe (IAMO), Russian consumers trust most of all the imported organic products that are certified in compliance with the EU Organic Regulation and that carry the oblong green EU Organic Leaf logo.

(Picture on left: Tasting milk and fresh cheese in a wholefood shop in St. Petersburg)

(Picture on right: A very rare sight in Russia – an organic fresh meat counter in St. Petersburg)

About the author: 
Nele Knauf speaks Russian and runs a management consultancy for the organic sector: Organic for Russia. To the website here!

Photos by Nele Knauf


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