In just ten years (2005-2015), the area of organic agricultural land in Russia has increased from 6.900 hectares to 385.140 hectares, which amounts to only 0.2% of the total agricultural land in the country. But not all certified organic land is under cultivation, which is partly due to the fact that certification takes about three years and farmers do not start using the land until they can produce and sell certified organic products.
According to data of the National Organic Union, in 2016 the main organic products produced by the companies were grains (23%), fruit and vegetables (22%), dairy products (13%) and meat and meat products (11%). Due to the fact that in Russia organic products are several times more expensive than non-organic ones, the largest markets for this sector are in Moscow and Sint Petersburg. These two markets account for more than 70% of total sales. Moreover, usually organic products have a shorter shelf life and cannot be transported over long distances. Furthermore, Russia also has the potential to become one of the major exporters of organic feed material in future.
The retail sector for organic is represented by premium supermarkets like Azbuka Vkusa and Globus Gurme, small health food shops (Gorod Sad, LavkaLavka), specialized organic products shops (Organic Market, Biostoria), online shops of larger agriholdings like Arivera and larger healthy food shops like Ecotopia.
The draft Federal Law on Organic Products, Production and Marketing is still under consideration at the State Duma where it has passed the first reading. The Law will cover main definitions in the sector such as “organic products”, “organic production” and “distribution”. The most important part of the draft Federal Law is that it will prohibit labeling and the distributing of ‘organic products’ that have been produced at a facility which has not been certified as organic.
It’s quite a challenge for producers of organic products to operate at the Russian organic market due to the following reasons: often consumers don’t make difference between organic products and other so called “healthy” products; lack of well-trained and qualified personnel as there are no specialized university courses for specialists in the field of organic agriculture; lack of knowledge and experience in organic production among the farmers themselves and difficulties with logistics for small and medium producers.