Altai Krai: the food embargo is as the growing point of export potential
Despite the general tendency of growth rate reduction of export in Russia Altai Krai shows a positive dynamics of export activities. Geographic structure of region’s export is due to the product specialization (flour, grains, cereals, macaroni products, animal feed and feed additives, vegetable oil, honey, etc.) and cross-border location with Mongolia, Kazakhstan, China. In general, the geographical structure of Altai Krai’s export is characterized by balance, stability, but more gravitates toward Asian markets.
Regional agricultural sector managed to diversify export to Asian, European and African destinations, and also to increase the product range of export.
Today, Altai products are exported to 18 countries of neighboring countries and beyond: Mongolia, China, Tajikistan, Kyrgyzstan, Kazakhstan, Latvia, Lithuania, Afghanistan, Canada, Poland and others.
In 2015 compared to the same period in 2014 flour exports increased by 60.8%, macaroni products by 13.4%, vegetable oil by 51.7%, including packaged vegetable oil by 65.7%, feed and feed additives by a factor of 4.7, compound feed and feed mixes by a factor of 5.4. Besides, this year honey has been supplied in Afghanistan, Germany, Canada, China, Mongolia, Poland, and the USA.
It will be remembered that the company “Altai Flour Mills” was registered in the Russian Representative Office of the UN World Food Program in 2009, and performed the first contracts for the supply of peas to Tajikistan (about 1.6 thousand tons) and vitaminized flour to Kyrgyzstan. Today, Altai enterprises continue food deliveries in the framework of the UN humanitarian programs. Thus, more than 17 tons of flour, 266 tons of cereals, 156 tons of sunflower oil, 1650 tons of sugar were shipped in 2015. For the first time supply of vitaminized sunflower oil was organized to Africa in the past year.
Altai processors have the task based on import substitution to form a large market, which will contribute to the growth of production dynamics.
In the new economic conditions Altai enterprises continue to work on the development of markets and the expansion of sales geography.
By the Department of food, processing, pharmaceutical industries and biotechnologies