Food Technology

Why FT Sector Group?

Being a member of the sector group gives you a lot of possibilities on the Russian market.
The Trade Council is annually creating several market visits within several different sectors with focus on Food Technology. To be able to take full advantage of these market visits, the sector group gives you a unique place in our programming phase. Beside that you will get a discount of at least 50% for each market visit, you will have a more direct contact possibility to federal as local authorities, as well as direct contact to developers and project companies. In total you will get:

  • At least 50% discount within the sector
  • Contact possibility to Ministry of Natural Resources & Environment- Contact possibility to developers and project companies
  • Possibility for targeted approaches for cooperation with Russian or Danish companies 
  • Personal advisor
  • Frequently fresh and sector specific news
  • Possibility for special requests

To be able to become a member of the sector group you will need to have a Danish CVR number.

Import substitution in the agricultural and food industry in Russia

The Russian market is full of opportunities! At this moment Russia seeks to achieve almost complete import substitution in the agricultural industry.

Russia is ramping up productions to meet shortfalls - The sectors of fish, pork, and poultry are predicted to continue growing through out 2016 and 2017. In almost the entire agricultural sector opportunities exist for further expansion and Russia is aiming to become a major agricultural player. For that reason, foreign investments are playing an increasingly important role in the development of the sector – hence, a clear vision towards modern western machinery and technologies can be ascertained. Additionally, a large number of dairy farms in Russia and Belarus are in strongly need of fundamental restoration and modernization, which includes; technical equipment, innovative packaging and processing procedures.
Most of these companies are open for foreign investments.

Moreover, the depreciated runble and a growing demand for agricultural and dairy products in Asian and the Middle East would incentivise the exports advantages of agricultural products.

Government commission on import substitution 

In august 2015 a commission on import substitution was founded with the purpose of dealing with civil branches of the economy. The commission seeks to prioritize the purchase of goods and service that should stimulate Russia’s domestic production. Namely, two groups of goods and services is to be substituted – one group being goods and services that falls under the Western sanctions and the other being goods and services that Russia plans to reduce import dependence on in the future.

One part of the effort includes the approval of investment projects, approval of the purchase of foreign equipment, and the adoption of a supportive unit, which should ease the production of domestic produced equipment.

The 11th August a meeting was held, primarily devoted to import substitution in the agricultural sector. The aim of this meeting was to create conditions for domestic producers in sectors of the Russian economy that have the highest import dependence. Namely, the following sectors are in focus; Machine tool production, light industry, radio electronic industry, mechanical engineering, and pharmaceutical and medical industry. It is especially important for the commission to ensure that the industrial and agricultural companies are able to produce with modern technologies that ensures a high global standard and which can make companies compete in the world markets. As a matter of fact, RUD 240 billion has been granted to state support for import substitution, and the Russian government does not plan to reduce this support in the years to come. In the coming months detailed programmes on import substitution will follow (updates will follow).

Additionally, the commission is considering issues related to barriers of implementation of the state programme, “Development of the Agro-industrial complex”. This includes the fight against smuggling and access to financing and veterinary requirements.

All the above allows for Danish firms to provide both production equipment and assisting in the development of domestic technologies and equipment, in a Russia with increasing opportunities.