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All news / The authorities decided to create a national food distributor

  • 08 Aug 2022, 11:32

The Ministry of Agriculture is preparing a concept for the creation of a national distributor of agricultural products in Asia, the Middle East and Africa. The goal of the project is to combine goods from manufacturers and optimize logistics.

The authorities decided to create a national food distributor

The Federal Center "Agroexport" of the Ministry of Agriculture of Russia announced a competition for the creation of the concept of a national distributor of agricultural products, follows from the data of the public procurement portal. The contractor will have to analyze the models of work for export deliveries of products and develop his own by conducting at least 20 interviews among domestic producers of the agro-industrial complex. Based on the results of the study, a “practice-oriented road map” for the creation and development of such a national distributor should be drawn up.

 

The starting price of the contract is set at 24 million rubles.

 

The purpose of the concept is to combine goods from several manufacturers, form large batches to optimize logistics, increase the export of agricultural products to target markets and enter exporters into new markets, the press service of Agroexport specified. According to his representative, the national distributor should have access to logistics and storage of goods, it can also be a private company, but it should not compete with independent exporters, but help them. Some functions of the national distributor may be outsourced to providers.

 

Assistance to Russian companies may consist in finding a partner abroad, delivery of goods or customs clearance of cargo. It is also expected to participate in joint projects to promote Russian umbrella brands in the network retail of foreign countries, open stores on marketplaces. Most of the services of the national distributor will be paid, Agroexport specified, but the costs may be partially compensated by the state.

 

Russia already has a state institution to support non-commodity exports — the Russian Export Center (REC), established in 2015. In particular, it provides exporters with “financial support measures”: it issues loans, provides bank guarantees, and provides insurance services. In addition, the center "interacts with the relevant authorities, prepares proposals for improving the conduct of export activities, interacts with business and experts and helps to overcome barriers."

 

The new concept of the national distributor will not duplicate existing support measures, the representative of Agroexport assured. The REC, in turn, said that they plan to "take part in the formation of the concept." The Center has previously helped promote the Russian agro-industrial complex abroad: in 2016, the Ministry of Agriculture developed a draft program for the Development of Exports of Agro-Industrial Products, under which the REC created permanent tasting pavilions of the Russian agro-industrial complex in China, the United Arab Emirates, Egypt and Vietnam. In the second half of 2022, the REC, together with the Ministry of Agriculture, plans to open a demonstration and tasting pavilion in the capital of Turkey, according to the website of the center.

 

In 2018, President Vladimir Putin instructed the government to more than double revenue from agricultural exports, from $20.7 billion in 2017 to $47.1 billion by 2030. The share of agro-industrial complex in Russian exports in 2021 increased to 7% and amounted to $37.1 billion, according to the tender documentation. But due to sanctions, Russia's exports in 2022 may be reduced by 17-21%, the Bank of Russia predicts.

 

In connection with the economic sanctions imposed this year by unfriendly countries, promising markets for the export of agro-industrial products, according to the tender documentation, are Asia, the Middle East and Africa.

 

In 2021, grains were primarily exported (according to statistics from the Federal Customs Service, their deliveries in monetary terms amounted to $11.4 billion), oil and fat products ($7.2 billion), fish and seafood ($6.6 billion). The largest buyers of Russian agricultural products were Turkey ($4.3 billion), China ($3.6 billion) and Kazakhstan ($2.8 billion), Agroexport specifies.

 

RBC sent inquiries to Miratorg, Rusagro, AFG National. Representatives of Cherkizovo, Efko and Cargill declined to comment.