Recently, the RBC has published an article written by Alexander Rudakov and dedicated to trends in the eco-production market and the prospects for the development of this area in our country. The President of the ECO-Culture holding told how difficult it is to be engaged in ecologically clean agricultural production in Russia, explained whether domestic enterprises can earn on such products and enter the foreign markets.
According to the author, Russian producers definitely have rather good prospects for development. The market of eco-products is growing but it is hampered by a number of obstacles – from the lack of legislative support to the inconsistency in terminology: it is still not quite clear what products can be called organic products in our country.
Meanwhile, the eco-friendly food market is flourishing all over the world. In the last 10 years, turnover has increased by more than 70 billion euros. According to experts’ forecasts, by 2020 the organic market will grow to 143 billion and will continue to grow. The leaders in the consumption of such goods are the United States, Germany, France, and China.
As far as Russia, this direction is still relatively innovative. And even though the demand for organic products is growing every year, the share of environmentally friendly goods in the domestic market still does not exceed 0.1 percent. According to statistics, only 1 percent of our citizens buy products with “eco”, “bio”, and “organic” labels. At the same time, the Ministry of Agriculture of the Russian Federation has estimated the organic market at 360 billion rubles. Also, Russian producers have excellent prospects of entering the export market.
Alexander Rudakov also explained what exactly the “eco” label on product packaging means. Such goods should meet four fundamental principles established by the International Organization IFOAM – The International Federation of Organic Agriculture Movements. These are the principles of Health, Environment, Fairness, and Care. This means that the “eco” label can only be applied to products grown in ecological areas, using natural methods without the use of growth stimulators or other chemical agents.
In Russia, there are GOSTs and legal acts regulating the production and sale of organic goods. However, they are not yet officially applied in practice. In addition, the producers are waiting for the law “On organic products” to enter into force in 2020. It will give a precise definition for the term “organic products”, as well as provide the rules of its application.
Further in the article, the President of “ECO-Culture” speaks about the risks and benefits the domestic producers of environmentally friendly products bear, as well as their hopes for expansion. According to A. Rudakov, Russia may become a quite successful exporter of eco-products, but that would require the state to stimulate the development of Russian farms in the regions and to put the legislative framework in order.
The full text of the article is available on RBC website.