Russia's Baltika plans to open trading house in Shanghai, several food industry companies launch shipments to Thailand - Agroexport

MOSCOW. Dec 13 (Interfax) - Russian exporters of agricultural products not only expanded their delivery geography but also actively used new methods of promoting their products, particularly branded ones, in foreign markets this year, head of the Agroexport Center Dmitry Krasnov said during the Russian Agroexport 2024-2025 strategic session.

"One of the trends is the active use of online marketing and the development of overseas infrastructure. This is not a new trend, but it continued to develop this year. For instance, the brewing company Baltika launched 11 new online stores on popular platforms in China and plans to open a trading house in Shanghai by the end of 2024," he said. Online activities are particularly popular in the Chinese market, he said.

This year, "a special focus was placed on opening representative offices in the UAE. Three companies established offices in Dubai. For example, Tikhrybkom Magadan Seafood opened a subsidiary there and began supplying crabs, shrimp, and trumpeter fish under its own brand," he said.

"In Saudi Arabia, where a business mission was recently held, we noticed something that hadn't been observed in previous years - interest in cooperation with investment funds from the Gulf countries," Krasnov said. "A lot of negotiations took place. They focused on mutual investments, implementing joint projects and using Islamic finance tools."

"One of the major discoveries this year was Thailand," he said. "Companies like Kuban-Vino, Makfa, Progress, Mirfoods and Belevskaya Pastille Manufactory began supplying their products to this country. The importance of this is that this market is not very receptive to ready-made imported goods, as Thailand is itself a significant exporter," he said.

This year, United Grain Company shipped Russian grain to Malaysia, Grain Gates shipped to Ghana, Mali and Peru, and Efko expanded its branded products to the markets of Indonesia, Turkey and Senegal, while Volshebnitsa started supplying sweets to Iran. "There are many such cases, which shows that companies are seeking opportunities for development through interaction with foreign partners in the current, challenging conditions. It also demonstrates that export activities have become not just part of companies' operations but an integral element of their overall development strategy, which is receiving more and more attention," Krasnov said.

Russia exported 103 million tonnes of agricultural products worth $43.5 billion in 2023. Despite the decline in prices on global markets, Krasnov forecasts export revenues will remain at last year's level, with a 10% increase in physical volume.