The Dutch agricultural sector has good prospects for trade with and investments in a number of Russian sub sectors. Opportunities exist for the supply sectors such as animal feed, genetics, seeds, agricultural machinery and housing. The Russian market also offers good potential for exports of quality products from the Netherlands such as fruit and vegetables and processed and packaged products.
The recession resulted in a decline in demand from Russia and potential investors bided their time. LEI’s study ‘Opportunities for Dutch agribusiness in Russia’ shows that prospects have improved, partly due to investments by the Russian government in the agricultural sector. Furthermore, the Russian economy is expected to grow by around five percent a year in the coming years, depending on the achievement of policy reforms and less bureaucracy.
Expertise
The Russian agricultural sector has a strong need for knowledge related to agricultural technology and management in order to improve the efficiency and competitiveness of the sector. Due to their in-depth expertise in this field, Dutch companies and organisations can make an important contribution to improving the performance of the Russian sector by supplying education, research and supplementary services.
Barriers
When exploiting these opportunities, Dutch companies are confronted with both tariff and non-tariff barriers which protect the Russian market. In particular, the strict food safety standards and monitoring procedures in Russia are found to be problematic. Companies which already or plan to export to or invest in Russia can use the services of the Dutch Agricultural Office in Moscow. The Dutch Agricultural Office can help solve problems, network with Russian companies and provide information about the Russian market.
Report 2010-093 Opportunities for Dutch agribusiness in Russia