Mosprom: Moscow Exports More Organics

MOSCOW, September 30, 2021 (Newswire.com) - Exports of organic products by Moscow-based companies are expected to reach USD 20 million by the end of 2021, up 20.5% year-on-year. This growth is being driven by dairy products, confectionery, and non-alcoholic beverages.

"Many of our local producers' organic products have good export potential. For example, dairy exports were up 54.9% year-on-year in the first half of 2021, totaling USD 19.07 million, and exports of non-alcoholic beverages were up 75.6% in the same period to USD 21.83 million," said Alexander Prokhorov, head of Moscow's department for investment and industrial policy. 

The Mosprom Center sees the Middle East as a promising market for organic products from Moscow, with Saudi Arabia showing demand for the city's meat and dairy and the United Arab Emirates interested in organic cookies, candy, and fruits. According to Mosprom Center experts, Arab countries are importing more organics as a reflection of their higher standard of living and because they produce relatively few of their own organic products. 

Organic cosmetics are a new but promising niche for Moscow's exporters. "Local cosmetics companies have been selling to the European market for decades, but organics currently have the greatest export potential. Moscow-based companies are already selling organic cosmetics in Latvia, Lithuania, Poland, Germany, and the Netherlands," Prokhorov explained.

In 2019, Russia was one of Europe's top five organic producers ranked by total land area used to grow organic products, with 674,370 hectares. Spain was in first place with 2,354,900 hectares, and Russia was followed by Austria, with 669,900 hectares. Since 2010, Russian growers have expanded the land area used to grow organic products by more than a factor of 14 (from 44,020 hectares).

The Mosprom Center, subordinate to the Moscow Department of Investment and Industrial Policy, deals with individual support for the capital's industrial and agribusiness exports.

The experts at the Center analyze the target markets for the capital's manufacturers. Specialists study the macroeconomic report on the target market, as well as the risk profile, including entry barriers, the state of the industry in the target market, its dependence on exports and imports, and SWOT analyses of the consumer market. The experts at the Center also perform individual analyses for the companies in order to determine the most effective strategy for entering foreign markets.

In addition, as part of the buyer program, the Center's experts — free of charge and based on specific export needs — help Moscow companies with the search of counterparties and negotiations with potential buyers abroad, in addition to providing for the participation of Moscow companies in international exhibitions and business missions.

Source: Mosprom