The Irish Food Board Bord Bia has launched a major new programme to develop outlets for Irish beef and pork in Russia’s rapidly growing supermarket sector, reports the Irish Examiner newspaper.
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Agriculture and Food Minister Mary Coughlan headed an Irish delegation to St Petersburg, the home town of Russian President Vladimir Putin, for the launch of the promotional drive, the paper said. It included the launch of the first ever retail promotion for Irish chilled beef in Russia.
Given the development of both the Russian economy and the retail sector, the prospects for expanding trade in Irish food and drinks products are considered to be good over the next couple of years.
Irish food and drink exports to Russia were valued at over €130m (US$157m) in 2004. Meat products accounted for €90m. The other main food items exported were beverages, seafood and infant formula.
Coughlan said the Russian market continues to be the most important export outlet for Irish beef outside the EU and it is vital that it be maintained and further developed.
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By GlobalData“I am confident that this initiative will result in Irish beef capturing a new and more valuable market segment,” she said.
The promotion campaign, which has started in St Petersburg, will be extended to other retailers over the next twelve months with a follow up evaluation later to test consumer reaction.
Coughlan said that in the last five years, the focus of the Irish beef industry has been to broaden and expand its market reach at EU retail level. “Effective promotion and marketing of beef by Bord Bia and the industry has ensured a presence for top quality Irish beef in all the key European markets,” she said.
Bord Bia chair Angela Kennedy said Russia’s strong economic growth and increasing development is leading to new opportunities. The market is changing with the development of a dynamic new retailing sector.
“This offers great new opportunities for Russian consumers, Russian retailers and Irish farmers and exporters. We believe we can expand the range of wholesome Irish food products available to Russia,” Kennedy said.
Bord Bia hosted a trade reception in St Petersburg on Wednesday evening to heighten the image of Irish food and drinks in the region, reinforce the importance of the Russian market for Irish beef and pork in particular and to strengthen and develop supplier-buyer relationships.
The reception was attended by Irish food and drinks companies and key Russian contacts including importers, distributors, government representatives and veterinary officials, as well as the Irish Ambassador Justin Harman.
As part of a new initiative, Bord Bia is exploring the opportunities for chilled vacuum packed meat sales to Russia. Retail promotions of chilled beef and pork are being trialled in St. Petersburg.
This initiative is being carried out in conjunction with meat exporters and Russian importers and will be expanded into other retailers over the next twelve months with ongoing evaluation to test the reaction of the trade and consumers.
For the first time, chilled Irish meat is now being sold directly to Russian consumers and identified as Irish.
Bord Bia said that while the bulk of Irish meat exports to Russia will continue to consist of frozen boneless product, the development of the market for chilled meat will allow Ireland to move up the value chain and establish a niche market which is less exposed to competitive pressures from South America.
Europe’s largest beef processor, Larry Goodman, said the Russians are becoming more affluent and will pay more for their meat.
However, there is a major negative just now. Having worked very hard to get the market opened for fresh chilled vacuum packed product, EU export refunds were unfortunately reduced by 20% this week.
“It could not have happened at a worst time and leaves us at a disadvantage immediately. I think it was extremely disadvantageous for Brussels to do that just at this time for this particular market,” he said.
Mr Goodman said the 20% reduction in export refunds equates to about 23 or 24 euro cents per kilo and that leaves the market unattractive at the moment.
