EkoNiva starts shipping dairy products to China by rail
MOSCOW. May 14 (Interfax) - EkoNiva Group of Companies, one of Russia's leading producers of raw milk, has started supplying China with dairy products by rail.
"The first containers carrying 42.5 tonnes of UHT milk arrived in the city of Xi'an. Previously, the group had sent dairy products to China by sea," the company said in a press release.
The journey from Moscow to Xi'an took 23 days, including all customs procedures. JSC RZD Logistics operated as EkoNiva's partner. Meanwhile, the group is working to optimize its logistics processes and in the near future, together with a partner, intends to reduce delivery times, the press release said.
EkoNiva Group opened an official representative office in Xi'an, the EkoNiva (Xi'an) Dairy Co. Trading House, in January of this year. The city is a major land transport hub in Shaanxi province. "The division conducts commercial activities, works to increase awareness of the EkoNiva brand in China, increase export volumes and expand the range of dairy products we supply," the agricultural holding said.
The group signed a strategic cooperation agreement with Xi'an Changba International Port, a major logistics hub and pilot free trade zone in Xi'an, in April of this year.
EkoNiva began exporting milk to China in the summer of 2020. Currently, the range includes UHT milk of various fat contents, as well as UHT cream with a fat content of 10%. The total export volume is currently close to 1,800 tonnes, over 350 of which were sent this year. The group's products are available for purchase in the provinces of Heilongjiang, Jilin, and Liaoning, as well as in Shanghai and Beijing.
"The long delivery time for products to China by sea, up to two months, significantly limited the range of products we could offer. Since transportation by rail can take just over two weeks, this opens up new opportunities for us. Now EkoNiva enterprises are undergoing certification so that in the near future we can present the Chinese consumer with shorter shelf-life products, primarily natural semi-hard and hard cheeses, which are in high demand here," Deputy General Director for Sales and Marketing of EkoNiva-Produkty Pitaniya (part of the EkoNiva Group of Companies), Alexei Maslennikov said.
Alexander Sivertsev, Director for Container Transportation and Agrilogistics at Russian Railways Logistics, said that domestic producers are increasingly trusting the railroad to deliver their products. "This motivates us to actively develop public services, in particular as far as China-bound freight is concerned. Russian Railways Logistics is continuously improving the technology of transportation using mixed trains and adapting services, including Agroexpress, to the needs of exporters," he said in a press release.
