N.B.! The research is available in English and Russian.
Relevance of the research “Russia’s farming industry. Development prospects in 2017”.
Russia’s farming industry faces a period of strong growth. The food embargo and ruble devaluation in 2014-2015 spurred business development in the farming and food industry. Thus, companies seek to occupy vacant niches as soon as possible. Weak competition and substantial government support of the industry ensured the best conditions for the development of domestic enterprises.
Russian manufacturers ramp up own production, both in their usual and in new categories, taking niches previously occupied by imports. In addition, the weak ruble makes Russian goods attractive and competitive in foreign markets, opening up new opportunities for domestic enterprises. Besides traditional export categories, such as grain and sunflower oil, domestic producers have embarked on sugar and poultry exports. Russian farms have increased their share in the export of cereals in the global market, beating out the United States in this indicator and coming out on top in the world in terms of volume.
As to crop farming, grain is not the only category demonstrating growth. The sector of greenhouse vegetables surged by almost 17% in 2016 and will continue double-digit growth in 2017-2018, with 875 Thousand tons production volume. Farmers start more vineyards, fruit orchards and grow other crops. Only in 2016, over RUB200 bn was spent on various subsidy programs for the industry, a lot more than for any other sector of the Russian economy. The government promises not to cut funding of the agricultural sector in 2017.
Livestock breeding demonstrated a variety of trends in 2016. Thus, meat production grew by 4.4% in Russia and reached almost 10 M tons in slaughter weight. Again, the key driver of livestock breeding in Russia was pork, whose production growth exceeded 8.5% by the end of the year. Cattle breeding in Russia remained at the level of 2015: the production growth at farms was offset by a decrease in cattle bred by households. Poultry production in Russia grew by 3.5% in 2016 year-on-year. The core factor of this sharp slowdown in growth (8.9% in 2015) was the market oversaturation, which in turn caused reduced poultry production in some regions. The production of milk in Russia in 2016 remained at the last year’s level – 30.8 M tons.
The farming industry of Russia is growing for the third consecutive year being a driver of the entire country’s economy. To obtain in-depth insights into the industry and understand how and in which areas it will develop further, we have conducted comprehensive research of the farming industry, food production and food market. This product will help you to determine the position of your company relative to the pace of the industry and define your future business development.
Purposes of the research:
· insights into the state of affairs in the farming industry of Russia as a whole and individual segments (meat, dairy, grain and oil, vegetables, etc.);
· analysis of Russia’s foreign economic activity;
· ranking agricultural groups of Russia by revenue in 2016;
· identification and description of Russias largest investment projects across the industry segments;
· description of landmark events in the farming industry of Russia by market segments and companies;
· identification and description of major M&A;
· analysis of changes to the government regulation of the Russian industry (adoption and entry into force of key regulatory documents);
· scenario outlook for the farming industry of the Russian Federation.
Top synergistic effect can be achieved through the combination of the research “Russia’s farming industry. Development prospects in 2017-2019” with other INFOLine studies on the industry:
· "Macroeconomics and condition of processing industries. Highlights of 2016. Development prospects until 2019"
Regular monitoring of the farming sector, food industry and food market as part of Theme-based news service:
o Theme-based news “Russia’s farming industry. Investments and development”
o Theme-based news: “Russia’s market of low-alcohol beverages, soft drinks and beer”
o Theme-based news: “Russia’s market of liquor”
o Theme-based news: “Russia’s food industry and food market”
Databases of market players:
o “120 Russia’s largest greenhouse facilities: 2016”
o “280 Russia’s largest meat processing companies: 2015”
o “250 Russia’s largest poultry farms: 2016”
o “230 Russia’s largest livestock farms: 2016”
Industry-specific reviews:
o “350 largest construction projects of farms and food production facilities in Russia. Projects of 2017-2020”
o “Food retail and consumer market of Russia. Growth prospects in 2017-2019”;
The research findings can be used in: marketing and strategic planning. Overall analysis of the farming industry and its sectors, as well as benchmarking and competitor analysis.
Research timeline: indicators of the industry since 2011, general statistics for the country and regional statistics as of 2016 (production volume and sales of farming produce, farmland areas, gross yield, export and import operations), development prospects in 2017 (macroeconomic indicators, individual investment projects).
Research schedule: Q2 2017
Research advantages:
In addition to the detailed analysis of the industry’s development, the research features:
· several original ratings from INFOLine (including rating of agricultural groups of the Russian Federation, which includes such companies as Rusagro Group, Cherkizovo Group, Miratorg);
· market survey of the largest agricultural companies of Russia;
· review of the Russian customs data for 2013-2016;
· unique data on the roll-out of upgrade and construction projects of livestock farms, greenhouse facilities, granaries, etc., in Russia.
· fact sheets of the largest agricultural groups of the Russian Federation (MIRATORG HOLDING, RUSAGRO GROUP, CHERKIZOVO GROUP PJSC, AGRO-BELOGORYE GROUP, PRODIMEX GROUP)
· analysis and outlook for the farming industry of the Russian Federation
Research objectives and structure by sections:
Part I. Current condition of Russia’s farming industry: core indicators of the food industry, information on the lending of producers, the volume of food exports and imports.
Part II. Landmark events of Russia’s farming industry: government support of the industry, legislative changes, M&A, resignations and appointments, international activities (food market development, food embargo, import substitution and export potential).
Part III. Investing activity in the farming industry: description of investing activity in the farming industry and food industry, ratings of the largest projects, findings of the market survey of the largest farms.
Part IV. Condition of individual sectors: in-depth description of the state of affairs across all core areas of the farming industry: crop farming and livestock breeding (meat and dairy, poultry, grains, leguminous and oil, beetroot, vegetables and fruit), demonstration of current companies’ projects, specific investment plans of companies, in particular, the launch of construction of cattle-breeding and greenhouse facilities, orchard starts.
Part V. Rating of the big-league agricultural groups of Russia: description of the leading market players, the visualization of companies’ markets and brands, financial indicators, a land bank and gross yield. The research also provides a unique rating of companies by costs of declared investment projects in the farming industry in 2017-2020.
Part VI. Development prospects of Russia’s farming industry: description of development scenarios for the farming industry in 2017.
Track record and references: INFOLine IA has offered customized research and published independent studies on FMCG retail and food market since 2005. Our regular customers are FMCG chains (including the market leaders: Magnit, X5 Retail Group, Auchan, DIXY, Metro Cash&Carry, Lenta, O’KEY, Selgros, Maria RA, etc., domestic and foreign manufacturers and suppliers of groceries, farming companies (Dymov Group, Valio, Soyuzoptorg, Karavay, UNICONF, Solnechnye Produkty Group, KBK Cheremushki, BKK Kolomensky, Stern Ingredients, Sibirsky Gurman, Mondel?z Rus, NMGK Group, Blago Group, Soyuzsnab, Rusagro Group, Baltika Breweries, EFKO Group, Coca-Cola, Pepsi, SABMiller, Fazer, Mars), etc.
You may get a questionnaire detailing your information requirements and a complete list of ready-made research products and other INFOLine’s information products HERE.
Sources:
· data of the Federal State Statistics Service, the Ministry of Agriculture of the Russian Federation, the Ministry of Economic Development of the Russian Federation, the portal of the Presidential Administration, the US Department of Agriculture (USDA)
· INFOLine’s database by areas “Investment projects in Russia’s industrial construction”; “New products in the food and beverages market”;
· regular mass media monitoring as part of Theme-based news: “Russia’s farming industry. Investments and development”, “Russia’s meat processing industry and livestock breeding”, “Russia’s milk and dairy market”, “Russia’s food industry and food market”
· data of the largest agricultural companies (website materials, press releases);
· materials of more than 5,000 Russian mass media (daily monitoring of the federal and regional press, news agencies, electronic media), as well as the industry press.
Special offer: Get a FREE! short version of the research “Russia’s farming industry. Development prospects in 2017” by sending your request to retail@infoline.spb.ru, or phone us: (812) 322-68-48, (495) 772-7640.
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