Growing the success of Irish food & horticulture

AIDAN COTTER

CHIEF EXECUTIVE

BORD BIA

28 JANUARY 2009

Growing the success of Irish food & horticulture

January 2014

The Russian Seafood Market and Ireland

Growing the success of Irish food & horticulture

Contents

• Russian macroeconomic overview

• Russian economic and demographic information

• Irish exports and the Russian market

• Frozen fish and seafood value forecast and expenditure

per capita for Russia

• Irish seafood exports to Russia

• The Russian fish market: canned, frozen and chilled

• The Russian market: January to November 2013

• Irish opportunity

Growing the success of Irish food & horticulture

Macroeconomic Information• Capital city: Moscow

• National currency: Rouble

• Total population (2013): 142.5m

• Area: 17,098,242 sq. km

• Population density: 8 people/sq. km

• President: Vladimir Putin

• Prime Minister: Dmitry Medvedev

• Ruling Party: United Russia Party

2009 2010 2011 2012 2013

GDP (nominal

USDbn)1,224.9 1,484.8 1,850.5 1,953.56 2,109.02

Real GDP growth -7.8% 4.0% 4.3% 3.6% 3.7%

Nominal GDP per

capita (USD)8,562.4 10,386.2 12,961.6 13,706.5 15,243.6

Unemployment rate 8.4% 7.5% 6.5% 6.0% 6.0%

Consumer price

inflation11.7% 6.9% 8.4% 5.1% 6.6%

Source: Statista

Growing the success of Irish food & horticulture

Russian Economic and Demographic Information

Source: Bord Bia

Russia has fifteen cities with over one million inhabitants

Moscow has an official population of 12 million

In October 2013, unemployment in Russia rose to 5.5%, still making

Russia one of the industrialized nations with the lowest unemployment.

In November of 2013, Russia’s trade surplus increased 12.8% y-o-y

to $16.5 million, as exports surged after a fall the previous month

Russia's economic power is in its natural resources - oil and gas

Growing the success of Irish food & horticulture

Irish Food and Drink exports to Russia Jan-Oct 2013

Source: Bord Bia

Prepared foods

Pigmeat

Fish and Seafood

Dairy products

Beverages

Beef

Sheepmeat

Frozen fish and seafood value forecast for

Russia ($m)

6

Growing the success of Irish food & horticulture

335.8999939297.2000122

228.3000031

44.29999924

324.5284.2999878

219.6999969

42.70000076

050

100150200250300350400

Raw fish Coated Fish Raw seafood Other

fish/seafood

2014 2013

Source: Datamonitor

7

Growing the success of Irish food & horticulture

Frozen fish and seafood expenditure per capita forecast ($)

2.52.200000048

1.700000048

0.300000012

2.4000000952.099999905

1.600000024

0.300000012

0

0.5

1

1.5

2

2.5

3

Raw fish Coated Fish Raw seafood Other

fish/seafood

2014 2013

Source: Datamonitor

Growing the success of Irish food & horticulture

Irish Seafood Exports to Russia 2013 (€m)

Source: Bord Bia

Growing the success of Irish food & horticulture

Canned Fish Market

By the end of 2014, the canned fish category will be worth

RUB36,176.6m ($1,455.6m) totalling181.6 million kg.

The canned fish/seafood market was led by tuna (27.2%)

followed by mackerel, other canned fish and salmon with

market shares of 25.8%, 25.1% and 21.8% respectively.

Source: Datamonitor Fish Market in Russia to 2014

Growing the success of Irish food & horticulture

Frozen Fish Market

By the end of 2014, the frozen fish category will be worth

RUB22,507.7m ($905.6m) totalling 135 million kg.

The frozen fish market was led by raw fish (37.7%) followed

by coated fish, raw seafood, and other seafood with market

shares of 32.4%, 25% and 4.9% respectively.

Source: Datamonitor Fish Market in Russia to 2014

Growing the success of Irish food & horticulture

Frozen Fish Market Value 2009-2014 (RUBm)

Source: Datamonitor Fish Market in Russia to 2014

Growing the success of Irish food & horticulture

Chilled Fish Market

By the end of 2014, the chilled fish category will be worth

RUB44,567.8m ($1,793.3m), totalling 695.9 million kg.

The chilled fish market accounted for 40.5% of the market.

Raw seafood and fish accounted for 59.5%.

Ice-logistic is the market leader with a 29.8% share of the

market.

Source: Datamonitor Fish Market in Russia to 2014

Growing the success of Irish food & horticulture

Chilled Fish Market Value 2009-2014 (RUBm)

Source: Datamonitor Fish Market in Russia to 2014

Growing the success of Irish food & horticulture

The Russian market: January to November 2013

Importers by volume

• The four largest Russian importers by volume, importing each over

80,000 tonnes of fish January-July 2013 cover 13% of the fish market

•Total imports of known importers stood at 2,114,342.64 tonnes in January

to November 2013

Growing the success of Irish food & horticulture

Imports by type of productMost popular imported fish by volume (tonnes):

• Pollock (THERAGRA CHALCOGRAMMA (573,112.24)

• Herrings (Clupea harengus, Clupea pallasii) (452,032.89)

• Mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus)

(118,334.85)

• Atlantic salmon (98,291.94)

other:

• Cold-water shrimps and prawns (Pandalus spp., Crangon crangon) (37,768.08)

• Hake (Merluccius spp., Urophycis spp.) (20,610.93)

• Oysters (457.13) and Clams, cockles and ark-shells (9.40)

Growing the success of Irish food & horticulture

Imports by type of product and source countries

• Russia produced 1234441.45 tonnes of seafood for

domestic use in this period.

• Norway lead the importing countries in January to

November 2013, however, most of the countries

seafood exporters were recently subject to an import

ban.

• Norway imported 276,302.11 tonnes of seafood total,

including 96,170 tonnes of Atlantic salmon.

• Iceland, China, The Faroe Islands, Chile and Canada

were the next most sourced countries in this period

Growing the success of Irish food & horticulture

Irish Fish in Russia, January to November 2013

In January to November 2013, Ireland exported 12763.62 of seafood,

including: (numbers in tonnes)

•Mackerel (Scomber scombrus, Scomber australasicus, Scomber japonicus)

(12394.22)

•Whiting (MICROMESISTIUS POUTASSOU) (156.00)

•Sprats (SPRATTUS SPRATTUS) (156.00)

•Herrings (Clupea harengus, Clupea pallasii) (48.27)

•Other (15.13)

Growing the success of Irish food & horticulture

Customs Union recent activity- Norway Ban

The Customs Union imposed a ban on 485

Norwegian companies; 90% of the country’s

registered suppliers to Russia beginning January 1,

2014

Norway was the biggest supplier of fish to Russia in

2013 by value; totaling $950 million

The Customs Union also imposed a ban on Estonian

products beginning January 9, 2014

Growing the success of Irish food & horticulture

Irish Opportunity- 2014

The ban on Norwegian fish leaves a large gap in the

market

Russian fish consumption is consistently increasing

Market access is challenging, but possible

Ireland and Russia have a healthy trade relationship

Growing the success of Irish food & horticulture

Directory 2014/Russia

A new directory profiling the key importers,

distributors, and processors has just been produced

Available to download for www.bordbia.ie

Link will be forwarded to all attendees

Growing the success of Irish food & horticulture

AIDAN COTTER

CHIEF EXECUTIVE

BORD BIA

28 JANUARY 2009

Growing the success of Irish food & horticulture

January 2014

Thank you for your attention!

Bord Bia Moscow