1 Aug 2022 09:29

Russian food exports to EAEU countries could grow by over $2 bln by 2030 - Agroexport

KALININGRAD. Aug 1 (Interfax) - Russian food exports to Eurasian Economic Union (EAEU) countries could increase by more than $2 billion by 2030 compared to 2021, the Agriculture Ministry's Agroexport Center forecast.

"If existing opportunities are realized, the growth potential for Russian food exports to EAEU countries by 2030 exceeds $2 billion," Agroexport head Dmitry Krasnov said at a roundtable at Russian Field Day in Kaliningrad Region on Friday.

"The most promising for increasing our exports are wheat, confectionary products, sunflower oil, drinking water, sugar, poultry meat and fish. But marketing activity on Eurasian countries' markets needs to be significantly intensified in order to achieve this result," Krasnov said.

He said trade in agricultural products between Russia and other members of the EAEU grew by 20% in 2021, with Russian exports increasing by 30% to more than $5 billion.

"Trade with our Eurasian partners is balanced. Exports of agricultural goods from Russia to EAEU countries are almost equal to imports into Russia. An important feature of trade with Union countries is the high share of finished products in Russian exports - more than half. The Eurasian space is a key export market for Russian producers of dairy, confectionary and processed meat products, beverages and sugar," Krasnov said.

Russia holds leading positions in the agricultural imports of EAEU countries, he said. For example, Russia accounted for more than 80% of total oil and fat product imports in Armenia, processed meat and sugar imports in Belarus, milled product imports in Kazakhstan and processed fish and sugar imports in Kyrgyzstan as of 2020.

"However, despite established bilateral ties, in future Russian exporting companies could face factors that create difficulties for expanding shipments of their products. They include protectionism in regard to local products, seen in Armenia, Kazakhstan and Kyrgyzstan, high self-sufficiency in food in Belarus, stronger competition with products from third countries, falling consumer incomes and others," Krasnov said.

These factors, particularly stronger competition with goods from third countries, can be mitigated by diversifying exported products and sales channels, as well as stepping up marketing of Russian goods on EAEU markets, he said.