Agriculture represents 5% of Russian GDP, knowing that Russia now holds 10% of global agricultural land (3rd world exporter of wheat) and half black soil of the planet. However, experts agree that this heritage is not yet fully exploited, knowing that 70% of Russian agricultural equipment center are now outdated. To encourage imports of agricultural machinery and create a dynamic of modernization of this park, Russian state has committed, upon accession to the World Trade Organization (WTO), to reduce its tariffs from 15% to 5% for certain machines (eg: combine-harvesters)..
There are also many opportunities, on food products level, to meet the demands of increasingly demanding 143 million inhabitants. Indeed, changes in the purchasing power of Russians in recent years (growth of 194% in 23 years of GDP per capita) has allowed players such as Auchan to grow rapidly (78 hypermarkets and 122 supermarkets) and become its biggest market in terms of turnover worldwide. This Eldorado does not rest solely the preserve of Auchan, in 2014 for example, France has celebrated its twentieth participation in the largest exhibition of raw materials, food products and beverages, PRODEXPO, with more than 60 companies (www. prod-expo.ru).
This is also the case of the "wine and spirits"segment, which like the European market neighbor is also highly developed in Russia. Indeed, historically and culturally the Russians have always been big fans of these products and are now more and more opening to imports of products (wine, cognac, etc.). For example, France is now the biggest importer of wines and the second largest importer of cognac in Russia.
Did you know?
- France is the first exporter of ice to Russia (16.7% market share)
- France is the third exporter of vanilla to Russia (21.7% of the market)
- French wines are the favorite of 91% of Russian consumers
- In 2013, only in Moscow and St. Petersburg were imported 5.7 mln. wine bottles
- Contrary to what everyone thinks, Russia is the second largest producer of vodka
- Russian vodka brand "RusskiyStandart" is the most exported Russian vodkas (39%)
- 95% of Russians say they like the French cheese and 55% of them even say to love it
- Imports of consumer goods and food products dominate the purchases of Russia