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Russian Farmers have to fight for Position in Commercial Networks

They sometimes forced to agree on unprofitable conditions.

11.Mar.15 10:54 PM
By Lubov Kovaleva


Russian Farmers have to fight for Position in Commercial Networks
Economic situation in Russia is becoming worse due to implemented sanctions. At the same time Russian farmers are not able to improve the situation as it was expected before. Producers of products are still forced to fight for their positions in commercial networks. This is why they sometimes have to agree on unprofitable offers and conditions if they want their products to be on stock in supermarkets and shops. This is rather strange taking into account the fact that demand on domestic products has increased. This results in worsening of economic situation according to the Prime Minister of Russian Federation Dmitry Medvedev.

He admitted the fact that situation in agricultural field has changed over the last few months. Share of foreign products in Russian shops has been reduced.

“We managed to increase demand of domestic products due to implementation of import substitution program. This fact reduced the number of foreign products in shops and supermarkets. On the other hand the tendency is not stable yet which results in lack of sales structure development. It limits huge producers of agricultural products as well as small farmers who face even more difficulties in comparison with large enterprises”, - said the Head of the Government.

According to Russian Antimonopoly Service margin of socially important products is not more than 10%. Of course, this statistics reflects the average situation and sometimes can’t reflect real situation in all Russian regions.

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