Russian rep cites Philippine food prospects in the Russian market

“The Russian food and beverages market is constantly growing at 25% annually,” said Anastasia Shtokolova of the International Cooperation Department, Russian Federation Chamber of Commerce and Industry (CCI RF). “This sector is forecasted to reach EUR350 billion by 2010 and is expected to be one of the largest grocery markets in Europe.”

The CCI RF provides aid to Russian businessmen—from small businesses to broad-based concerns—in establishing business contacts with foreign partners. CCI RF contributes to the development of Russia's exports and the attraction of foreign investments into the Russian economy.

Shtokolova also said that the latest trends in food and beverages include the growth of small and regional producers, strengthening competition, and changing consumer preferences towards healthy products.

The CCI RF Assistant Director was in Manila as guest speaker for Day 2 of the 4th International Food Exhibition (IFEX) Symposium Series ‘The Global Challenge of Food Safety and Regulatory Compliance in the Australian and Russian Food Markets’ held last May 21-22 at the Philippine Trade Training Center (PTTC). This is organized by the Center for International Trade Expositions and Missions (CITEM), along with the Bureau of Export Trade and Promotion (BETP) and PTTC.

“It is important for Philippine food companies to find a reliable Russian partner who would take care of the distribution of their products in our country. And here the services provided by Russian Federation CCI might be very useful” advised Shtokolova.

During the symposium, Shtokolova explained that foreign goods imported to Russia require GOST R Conformity Certificate issued by the Federal Agency on the Technical Regulation and Metrology (formerly Gosstandart), the Russian authority responsible for standards development and accreditation of almost all consumer products. ‘GOST’ is the Russian word for ‘norm’ while ‘R’ stands for ‘Russia.’ The mandatory GOST R certificate is then issued after a technical evaluation of the food manufacturer’s compliance to Russian safety regulations. Documents required for certification include technical description of the product; protocol of tests; hygienic, phytosanitary, and veterinary certificates; supply contract; commodity-transport documents; and technical documentation of the manufacturer.

Regarding the Russian labeling standards, Shtokolova discussed that the product’s name, producing country, company, weight and volume, ingredients and additives, value storage conditions, and application instructions are all required to be included in the packaging using Russian language.

Russia offers exporters a huge market of 143 million consumers, majority of which reside in highly urban areas such as Moscow and St. Petersburg. Moscow’s largest food retailers like Perekryostok, Seventh Continent and Ramstor plan to open as many as 20 stores. It also plans to invest $3 billion in renovating existing shopping facilities, including well-equipped modern food stores over the next 20 years.

In 2005, Philippine exports to Russia increased by 96% reaching US$36.34 million from US$18.58 million in 2004. Also, the food mission to Russia held last year (Flavors of the Philippines: A Philippine Food Festival in Moscow)) revealed that food products with market potential include, among others, dried fruit, seafood, carageenan, fruit juices, noodles, condiments, food mixes and coconut-based products.

For more information on this IFEX symposium, please call CITEM, Agri-Marine Division at 831-1282, 831-2201 locals. 204 and 238 or e-mail: agrimarine@citem.com.ph.