Big retailers to accelerate advance of value-added processing in Russia

August 18, 2011 16:37

In the near future deep fish processing will be developed in Russia at a much greater rate and big retailers are already mulling over using their logistic powers in order to trigger the process from their end, reports based on an interview of Anton Sukhorukikh, marketing and development director of Vladivostok-based Process Equipment Co., Ltd ("Tehnologicheskoye oborudovanije" Company in Russian).

According to the director, Russia goes its own way even in fish consumption.  While in most countries wild fish is more expensive than aquaculture products, for example in Russia Norwegian salmon is much more expensive than first class wild king salmon. 

The matter is that Russians were spoilt by the Soviet times when due to heavy subsidies high quality wild fish was cheap and available for everybody.  At the same time most Russians cook at home, and demand for unprocessed fish is much higher than for semi-ready products.  However, both factors become weaker year to year.  There are plenty of housewives now whose talents are limited by primitive sandwiches.

Hence, deep fish processing technologies are demanded in Russia, and for example recently Process Equipment Ltd has been approached by large retail chains operators who intend to develop fish processing for their own needs.  We are just beginning our work here, but the first such a project will surely be implemented in 2012, said marketing director.

There is an opinion that the best way for Russia is a vertically integrated holding.  Such a unit would provide catch, processing, storage and logistics services together.  It might include retail as well.  Today there is development to this organisation form starting from the end of the chain, i.e. from retail.  Fishing companies just speak about deep processing, and lose momentum.  It means that deep processing of fish will start in Russia pretty soon, but not by companies who are on the market now, concluded the director.

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