Russia has chosen the path of developing organic production, growing the domestic market, and exporting environmentally friendly products. Some exporters have already started exploring foreign markets.
The country is still in the process of forming the market for organic products, but Russia has enormous potential for developing sustainable agriculture and producing certified organic products. This will not only increase domestic consumption but also actively promote exports, including through support programs from the national project "International Cooperation and Export," according to experts.
Why is there demand for organic agriculture?
Organic products are becoming increasingly popular worldwide, and Russian products, which are natural but not yet officially certified as organic, already have high demand.
"Naturalness is one of the strongest competitive advantages of Russian food products in foreign markets, and the REC offers producers of organic products a wide range of measures that allow them to scale up and access new markets. These measures have already helped dozens of companies start exporting," emphasized Roman Genkel, Vice President of the Russian Export Center (REC, part of VEB.RF Group).
In the process of organic production, the use of chemical pesticides, fertilizers, food additives, antibiotics, growth hormones, and GMOs is prohibited. Organic products are certified according to Russian or international standards that establish a system of rules from planting to sale. The demand for organic agricultural products is growing worldwide, and significant volumes are expected in the coming years, according to a study by the marketing company Mordor Intelligence. The international community attaches particular importance to a healthy lifestyle and strengthening immunity. State authorities are also interested in developing the market for organic products, as it contributes to reducing morbidity and cutting healthcare costs.
Sustainable agriculture has become a response to challenges related to the intensification of agro-industrial production, increased environmental impact, land exploitation, and resource use. Leading countries have limited opportunities to increase organic production due to a lack of their own land resources, notes Marina Anokhina, Associate Professor at Plekhanov Russian University of Economics.
Consumption of organic products in Russia still remains at a low level, but the country has significant potential for development in this segment. Russia lags behind developed countries in the number of certified producers and the area of organic lands. Nevertheless, experts believe that its potential in the global organic product market is at least 10-15%.
Perspectives of Russian organic production
The development strategy of organic production until 2030 was approved by the Russian government in 2023, and its implementation plan was adopted in 2024. By 2030, the country plans to develop a separate sector of organic agriculture and increase organic production to 114.5 billion rubles. The volume of domestic organic consumption during this period should reach 149.8 billion rubles, and exports should amount to 27.8 billion rubles, 7.5 times more than in 2021. China is considered the priority market for exports, as it is currently the world's largest food importer. The Chinese market offers significant opportunities for supplying Russian corn, soybeans, pine nuts, barley, frozen berries, honey, and nuts. Russian organic products are also expected to find their niche in the markets of the Persian Gulf, Southeast Asia, and neighboring countries.
Starting from September 1, 2024, the use of the terms "eco," "bio," and their derivatives, as well as "green" in labeling, will require the presence of an organic certificate to ensure the authenticity and quality of the products.