5 Russian food projects that need modern technologies

Russia is experiencing a period of confidence in its food industry. Government-set self-sufficiency targets has led to production rises of some key commodities. With foodstuff import substitution as a growing trend, there are other ways international companies can make a break in Russia. Namely, by outfitting agricultural and food production projects with world-class technologies.
 

Upcoming Russian food industry developments

Here, we take a look at five developments to give you a flavour of the ongoing activity in Russia’s food sector. While this is only a small cross-section, it indicates an ongoing commitment to upgrading Russian agricultural and food production sites across the country. All of them have one thing in common: the need for updated, cutting-edge food production and processing machinery and equipment.

1. New halal production facilities commissioned – Demand for halal meat is on the rise in Russia. According to a study from the Moscow-Based International Institute of Agrarian Policy, the market will grow at a rate of 15-20% annually, reaching a value of roughly $1.1 billion by 2026. At present, roughly 12-15% of Russia’s 140 million population identifies as Muslim – or between 16-20 million people.

Increased demand has led to a number of fresh farms and production facilities being commissioned. For example, a new $61 million halal turkey farm will be put into operation in the majority-Muslim region of Ingushetia in 2017. The farm will have an annual capacity of 10,240 tons of meat, allowing the new complex to meet regional demand for halal turkey by itself. 

2. Greenhouses in the Arctic circle – Yamal in Russia’s far north might not seem like a logical place for vegetable production. The Russian government would disagree. Here, amid the permafrost, multiple 9-acre greenhouse complexes will be built across the next five years.

Sites selected for all-season crop production are located throughout the Yamalo-Nenets Autonomous District. Additionally, cattle raising facilities and mini farms are expected to be up and running in the region by 2020. Year-round production and new greenhouses are all a part of the region’s food security programme, for which roughly $40 million has been set aside by the local government.

3. Foreign-funded factories throughout Russia – Food imports may be increasingly off the menu, but that has not stopped a range of international businesses from planning factory construction throughout Russia. Not only do these planned facilities run the course of Russia, but they cross the whole of the agriculture and food processing sectors.

Dutch company DSM is launching construction of a second agricultural vitamin-mix facility in Tatarstan in 2017. Croatian baby-food producer Atlantic Grupa is also set to begin work on a new factory in the Orel region. Perhaps the largest investment in new production facilities, however, is the $500 million apportioned for new dairy production sites by Vietnam’s TH Group in Kaluga. TH, a leading Vietnamese dairy consortium, is investing $3.7 billion in Russian projects over the coming years. 

4. Funding for fisheries – Some $45 million has been set aside by the Russian government for aquaculture and fishery subsidies up to at least 2017. From here, the Putin administration hopes for aquaculture production to rise to 410,000 tons annually by 2020. 

15 new salmon farms are planned for construction throughout Russia, alongside mackerel and sardine farms. St. Petersburg and the Leningrad region have been set aside for fishery development too with plans to invest in 100 sets of aquaculture equipment for the region’s 40 firms underway. Additionally, $390,000 will be invested in small-scale fisheries in the Bashkiria region. 

5. More meat means more factories – Meat production, apart from beef, is soaring in Russia and is even close to self-sufficiency in some areas. Thanks to a country-wide initiative of import-substitution, favourable weather conditions and smart investments by Russian farmers, the meat sector is in rude health. To keep this momentum going, loans and subsidies for new factories are in place.

One company taking advantage of generous government investment is Damate. Russia’s leading turkey meat producers has been awarded a loan worth a suitably meaty  $210 million to invest in new production complexes throughout the coming years. Expect increased demand for meat handling, processing and packaging technologies from  companies such as Damate in the near future.
 

Can your company supply Russia’s food sector with modern tech?

The opportunities for agricultural and food processing equipment producers in Russia are increasing exponentially. If your company can tap into this huge market, and help aid Russia’s agricultural outpouring, make sure you are talking the right people by attending an ITE Exhibitions food and drink event in 2017.

 

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