russia's food processing machine market

1、Russia’sFoodProcessingEquipmentMarketSummaryThefoodprocessingsectisoneoftheleadingindustriesinRussia’srapidlygrowingeconomyaveraging1520percentgrowthperyearfthepastseveralyears.In2003totalindustryoutputwasvaluedat34.9bil

2、lion.Increasingconsumerdemfnewbetterproductsapopulationof143millionaswellasrisingincomeshasgreatlyenhancedthedevelopmentofthefoodindustry.MarketHighlightsBestProspectsThefoodprocessingindustryinRussiastartedtodeveloprapi

3、dlyasaresultofthe1998rubledevaluation.ThisisduetothefactthatimptedproductsbecameunaffdablefthemajityofRussianswhichnecessitateddomesticfoodproducersincreasingtheproductioncapacityoftheirfacties.Thisinturnspurreddemfhighq

4、ualityfoodprocessingequipment.Localproducersoffoodprocessingequipmentwereunabletomeettheincreaseddem.Furthermethequalityofdomesticequipmentstilldoesnotmeetmodernhightechcriteriabutpricestendstobehighlycompetitive.Rapidgr

5、owthoftheRussianfoodindustryhasstimulatedinvestmentsintothefoodsect.Russiancompaniestookadvantageoftheeconomiccrisisrapidlybegantoimprovethequalityoftheirproductsexptheirproductionfacilitiesrenovateproductionequipment.Gr

6、owthoffoodconsumptioninRussiahasfurtherfueledinvestmentsintothelocalfoodprocessingindustry.BytheendofMarch2004thetotalamountofaccumulatedinvestmentsreached57billiona32.6percentincreasecomparedtothesameperiodin2003.Global

7、producersoffoodbeveragessuchasCocaColaPepsiCoMarsKraftsUSANestleSwedenDanoneFranceCampinaherlsEhrmannGermanySunInterbrewBelgiumhaveestablishedlocalproductionfacilities.Suchinternationalcpationshaveleadingpositionsinthebe

8、veragesconfectioneryyogurtspetfoodcoffeeteasects.WhilethemarketcontinuestobedominatedbyfeigninvestsseveralRussianentrepreneurshavecontributedsignificantlytothedevelopmentofthesect.Consolidationthroughmergersacquisitionsb

9、ybothdomesticfeignbusinessgroupsisacceleratingintheRussianfoodprocessingsect.Thebreweryindustryexperiencedthefirstconsolidationswhichweremadeseveralyearsago.Currentlythistrendisnoticeableintheconfectionerydairyjuicesegme

10、nts.Inthe90slargeverticallyintegratedholdingssuchastheCherkizovskymeatprocessingplantWimmBillDannjuicedairyproducersfocusedonthedevelopmentoftheirproductionfacilitiesusingtheirownrawmaterialresources.Amajityofthedomestic

11、playersinthemarketaresmallmediumsizedcompanies.Whilelargedomesticcompaniesaredominatingthejuicemeatprocessingvodkadistillationsegmentsthebakerydairygrocerysegmentsofthemarketstillhavenotconsolidated.Maj●SlaughterHouseEqu

12、ipment:Allequipmentbutespeciallythatftheprocessingofanimalbloodbonesfatotherbiproductsthatareusuallythrownaway2030percentlosesduringpreliminarymeatprocessing.●Butcheringmakeupmachineryshredders.●SausageMakingEquipment:Ma

13、chinerysuchasgrinderscuttersmincersinjectsheatingthermalequipmentdesignedfprocessingover10tonsofmeatproductspershift.U.S.companiestendtophaveanadvantageinthisareaduetoweakdomesticcompetition.●VacuumPackagingMachinery:Vac

14、uumpackagingisprogressivelybecomingtheindustrystardinRussia.●RefrigerationFacilities:Plantswithfeigninvestmentareinterestedincreatingmodernstagefacilitiesonsite.Oldercentralstagefacilitiesneedreplacementelimination.Asmod

15、ernretailstesfoodserviceestablishmentsbecomemeprevalenttheproductionlinespackagingfthefollowingkindsofproductsareexpectedtobeincreasinglyindem.●Avarietyofmeatproductssuchasfreshmeatcutsfsupplytorestaurantsstardizedprecut

16、productsfthefoodserviceindustryfreshmeatcutspackagedfretailsaleaswellascuredsmokedcannedcookedproductsdelicatessenproducts.●Semifinishedfrozenmeatproductsi.e.hamburgerspizzasTVdinners.●Russian“pelmeni”meatraviolipatties:

17、Pelmenishopsareenjoyingpopularityarebeingestablishedatretailstesfastfoodrestaurantsbakeries.●Changesinthecompositionofhouseholdsareinfluencingconsumerexpenditurepatternsdemfhighqualitypreparedfoodsfoodspreparedoutsidethe

18、homeareexperiencingrapidgrowth.ImptMarketCompetitionThemeatprocessingequipmentmarketinRussiaishighlycompetitive.EuropeancompaniesareaggressivelymarketingtheirequipmentamongviableRussianmeatprocessingplants.Europeanequipm

19、entdominatestheimptmarketrepresentingnearly90share.MajimptmarketsareGermanyherlsAustria.IndertosuccessfullymarketequipmentU.S.manufacturersshouldbeawareofhowRussianstendtopurchaseequipment.Amongkeycompetitivefactsthatinf

20、luencebuyingdecisionsfRussiansarepricereputationqualityofequipmentmachineryavailabilityoffinancialsourcesaftersaleservice.Alsoitisadvisabletoaggressivelymarketproductsbeabletoprovideengineeringservices.Furthermostmeatpro

21、cessingequipmentavailableonthemarketisunderwarrantyfromthreetofiveyears.RegardingmarketingU.S.companiesshouldhavearepresentativeofficeinRussiawkthroughRussiandistributs.MarketingU.S.equipmentfromtheU.S.isdifficultbecause

22、mostRussianbuyersviewseveralpiecesofequipmentfromdifferentmanufacturersbefemakingtheirfinalpurchasingdecision.Therefeitisimptanttohaveacompanyrepresentativeavailabletorespondtoquestions.Thecompanyshouldalsoparticipateind