Required Report - public distribution

**Date:** 10/12/2006

**GAIN Report Number:** RS6317

RS6317

**Russian Federation**

**Exporter Guide**

**Russia\'s economy fuels agricultural import growth**

**2006**

**Approved by:**

![](media/image1.wmf)Eric Wenberg

ATOMoscow

**Prepared by:**

Daniil Schultz

**Report Highlights:**

Russia offers U.S. exporters a large market and many undiscovered
opportunities -- 142.8 million potential consumers. Hgh world prices for
oil & natural gas, increase in sovereign credit ratings, stability in
political situation cause overall economic development and consumer
spending boom. Such dramatic growth is beginning to spread beyond Moscow
and St. Petersburg to the regions

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Moscow ATO \[RS4\]

\[RS\]

SECTION I. MARKET OVERVIEW

## KEY POINTS

-   Russia offers U.S. exporters a large market and many yet
    undiscovered opportunities -- 142.8 million potential consumers. The
    country is currently attracting more international businesses from
    around the globe every year.

-   High world prices for oil & natural gas, increase in sovereign
    credit ratings, stability in the political situation cause overall
    economic development and a consumer spending boom.

> There is an external surplus and in 2007 the country will save \$ 150
> billion in a stability fund, and this sum is likely to grow twice by
> 2009.

-   Russia's investment rating grew by this year when it paid back the
    Soviet debt to the Paris Club of Creditors. According to Rosstat,
    the amount of investments to Russia in the first half of 2006 was \$
    23.4 billion, which is 41.9 percent higher than the same period in
    2005.

-   There already are established, successfully functioning, American
    companies in Russia.

-   World's 4^th^ largest growing economy with 7 years of consecutive
    growth. GDP growth was 6.6 percent to \$570 billion in 2005.

-   Per capita GDP reached \$5,300 in 2005, comparing to \$4,039 in
    2004.

-   Incomes grew over 20% in 2005. According to experts, average wage in
    2005 is \$1,031 for Moscow middle income buyers, \$370 for other
    regions' buyers

-   There is fast growing retail market and in the period of 2002 --2006
    it had been increasing an average of 28.6% per year, which is
    explained by the fast growth of people's incomes. Now this market is
    estimated \$ 117 billion. Fourty-four percent of products sold
    through retail is imported products. Moscow consumers continue to
    spend 70% of their incomes on consumer goods, the highest ratio in
    Europe (Interactive Research Group). Modern retail formats are going
    into regions increasing total demand for quality products

-   Since the ruble and euro are continuing to appreciate against the
    dollar, American products are becoming more attractive to the
    Russian importers.

-   Recognized as a "market economy" by US and European Union, Russia
    has made significant strides with its accession to the World Trade
    Organization

+----------------------------------+-----------------------------------+
| ## CHALLENGES A                  |                                   |
| ND ADVANTAGES FOR U.S. EXPORTERS |                                   |
+----------------------------------+-----------------------------------+
| ***Advantages***                 | ***Challenges***                  |
+----------------------------------+-----------------------------------+
| As part of the WTO accession     | Continuing debates between Russia |
| process, Russia is moving        | and the US over WTO issues.       |
| towards international standards  |                                   |
+----------------------------------+-----------------------------------+
| Russia is the fastest growing    | Government bureaucracy and        |
| retail market in the world,      | corruption                        |
| after China and India            |                                   |
+----------------------------------+-----------------------------------+
| Paying in dollars is quite       | Tight competition to American     |
| advantageous for the Russian     | products from Europe, Asia and    |
| businessmen due to the lower     | the rest of the world             |
| cost of dollar.                  |                                   |
+----------------------------------+-----------------------------------+
| New format supermarkets are      | Misperception among Russian       |
| rapidly expanding to meet        | consumers against imported goods. |
| consumer demand, creating a good | Russians lack knowledge on the    |
| venue for imported products and  | quality and benefits of US        |
| taking sales from other channels | agricultural products             |
+----------------------------------+-----------------------------------+
| Sanitary and Phytosanitary       | Economic vulnerability,           |
| issues, when they are resolved,  | dependence on oil and mineral     |
| grow trade                       | extraction for most wealth        |
+----------------------------------+-----------------------------------+
| Greater emphasis on value-added  | Non-tariff barriers hold trade    |
| production in food processing    | below potential                   |
| gives opportunities to new       |                                   |
| products                         | USDA has not finished negotiating |
|                                  | new veterinary certificates       |
+----------------------------------+-----------------------------------+
| Consumers became less            | Limited acceptance of             |
| financially restrained and       | biotechnology                     |
| continue to shift towards        |                                   |
| better-quality products, growing |                                   |
| middle-class                     |                                   |
+----------------------------------+-----------------------------------+
| Investors are building more      | Distance being a major barrier    |
| efficient storage facilities,    | complicates logistics and ties up |
| improve infrastructure and       | importers' funds                  |
| logistics                        |                                   |
+----------------------------------+-----------------------------------+
| Fast food service and            |                                   |
| restaurants develop at           |                                   |
| incredible rate demanding new    |                                   |
| products                         |                                   |
+----------------------------------+-----------------------------------+

# SECTION II. EXPORTER BUSINESS TIPS

Based on experiences of American businessmen operating in Russia, below
are the marketing tips for newcomers to the Russian market:

Take time to research the market for your product. The better you
understand local conditions and opportunities, the more likely that you
will succeed in finding a buyer. Make sure that you product really has a
market in Russia. The Russian housewives are very economical and would
rather spend time in the home preparing a nice meal for their families
than buy a ready to eat meal.

If/when you do travel to Russia to visit potential trade partners,
don't expect to spend a few days and close a deal. That could happen,
but a successful partnership may take months to develop. For example, if
you visit for 2 weeks, the first 13 days you could travel, meet the
family, meet friends at dinner and on the last day you can conclude your
business if all is in agreement that you can work together. But you need
to keep in mind, that this agreement is not the final part of the
negotiation process, but only a first phase of an ongoing process to get
to a final understanding.

Pay attention to business fundamentals. Business basics - knowing your
market, putting the customer first, and offering quality products - are
as useful and necessary in Russia as in any other market. A lot of
foreigners have wrong ideas of the Russian market being the same as
during Soviet Union times with shortages of most products in the stores.
You'd be surprised to find out an abundance of all kinds of quality
goods from all over the world now available to Russians and their
demands for quality are growing every year as well as their purchasing
abilities. If your idea was to sell off grade items, you would most
likely not success here. You will never enjoy your Russia experience if
you are of the opinion that this is a low-grade market.

Don't let culture shock impair your business judgment. Some Russian
business people are not friendly and open during first meetings. Still,
many entrepreneurs are outgoing and speak good English.

Don't expect to do everything at an American pace. While the business
environment is improving, many things simply move at a different speed.
A good example: Getting around by car or taxi in major cities, such as
Moscow and St. Petersburg, can be especially frustrating. Build extra
time into your schedule - you will probably need it.

There are several alternative marketing strategies that can be used to
enter the Russian market. While there may be considerable overlap among
these different types, four broad approaches can be identified:

Sell directly to a Russian importer/distributor/processor.

An option is to sell to an agent/consolidator in Western Europe. This
is very risky for pricing structure and your market development. If your
goal is to sell here, you need to maintain product identity and prices.
Europeans would only sell your product if and when they can make a
profit and not when the client wants it.

Establish your own import and distribution facilities in Russia.

A U.S. company, operating on its own, will generally pay higher customs
fees, face more difficult inspection procedures, and be forced to
contend with more administrative delays than would a local importer. The
local importer may or may not also be the distributor. This entity will
serve as a conduit for products into Russia and can deal with the
numerous barriers to bringing a new product into the country. A model
employed by many successful exporters is to use a Moscow or St.
Petersburg based trading company to act as primary customer and
facilitator of imports. In fact, most imported products sold in Western
Russia pass through Moscow and/or St. Petersburg. For the Russian Far
East, Vladivostok is home to most importers and the principal import and
transshipment point. If an exporter is willing to invest the necessary
time and effort, even to the extent of establishing a representative
office, then dealing directly with fast-growing Russian processing
companies will provide better margins and the opportunity to respond
more quickly to the clients' demands. If the decision is made to
establish local representation, this office should be located in Moscow
and should be run by an experienced Russian national to ensure the
greatest market coverage.

You as the exporter, must take the decision if this market has
potential, how you want to enter and at what volumes and pricing
structure. You have to find someone who will represent your interest
either on a full time or part time basis is a good option. You can set
up a Russian company with 100% foreign ownership and act as a domestic
company doing customs, etc working with brokers for customs and handling
will allow you maximum control and the end results will be much better.

In Russia, business is conducted on a face-to-face basis with the top
people making the decisions. Your local person must be able to act on
their own as if they were the top man. Give them control with very rigid
controls in place for money, commitments, etc.

Make them part of your team and treat them respectfully. Remember here
in Russia, most people you'd work with are likely to know at least one
other language, have a very good basis in geography and generally are
intellectual.

## ASSESSING THE MARKET FOR YOUR PRODUCTS

There are various aspects to determining whether your product has market
potential in Russia:

-   Review the information provided in *Section IV. Best High-Value
    Product Prospects* of this report.

-   Participate in one of several established trade shows in Russia.
    This will allow you to take a first-hand look at the local market,
    meet potential importers, and gauge how competitive your product is
    compared to similar products being promoted at the show.

-   Contact ATO Moscow, St. Petersburg and Vladivostok to request a
    brief market assessment for your product and/or a list of Russian
    importers.

TRADE SHOWS IN RUSSIA

World Food

Moscow

September

[www.world-food.ru/eng](http://www.world-food.ru/eng)

This USDA-endorsed event offers an excellent opportunity to introduce
U.S. food products in Russia. In 2005, this 4-day show drew 1,100
exhibitors from 51 countries and attracted more than 50,000 importers,
wholesalers, retailers, and processors from all parts of Russia and from
many neighboring countries.

Prodexpo

Moscow

February

<http://www-eng.expocentr.ru/site/95/default.asp?section=3>

The Prodexpo International trade show is the largest show of foodstuffs
in Russia and Eastern Europe that boosts development of the domestic and
international food markets.

WORKING WITH A RUSSIAN IMPORTER

Selecting the right trade partner is probably the most important thing
you can do to develop your business in Russia. An experienced and
reliable importer can help you avoid the kinds of mistakes that could
cost your company profits and sales. In this regard, banking and
supplier references are essential, as is an examination of the company's
experience and business history. There are local and U.S.-based
organizations that can help provide this kind of information. However,
be aware that credit reporting is still a relatively new practice in
Russia, and credit-reporting agencies may not have complete information
on potential business partners.

## DISTRIBUTION CHANNELS

Most importers also act as a primary wholesaler or distributor.

The entry of large foreign supermarket/hypermarket chains has had a
fundamental impact on food distribution in Russia. Increasingly, these
large retailers are buying in bulk directly from local manufacturers. At
the same time, the increasing buying power of these retail chains is
encouraging consolidation and growth among distributors in an attempt to
maintain some balance. Although, up to now, Russian retailers have done
little direct import, several of the larger chains are beginning to
bring in some items and a few are considering an even larger range of
products. All operators of the market are busy with optimizing the
process.

## 

## 

## 

## 

## LOGISTICS AND TRANSPORTATION

Various routes are available for shipment of various food products to
Russia, each with its own advantages and disadvantages. Some products
are sourced through Western European importers or brokers and delivered
by truck or vessel to Russian ports. More direct imports come via Baltic
or Finnish ports and then are shipped by truck or rail to St. Petersburg
or Moscow. The advantage of these ports was greater efficiency, fewer
problems with loss or damage, and lower port fees. However, changes in
Russian import requirements have largely redirected these shipments to
Russian ports: St. Petersburg; Ust-Luga, Vysotsk, Kronshtadt;
Novorossisk and Vladivostok.

Most consumer-oriented food and beverage products enter through St.
Petersburg and are customs-cleared there or in Moscow. In fact, the
transportation system for shipping U.S. high value food products into
Russia via St. Petersburg and Moscow is very well established. Transit
time ranges from 20 days to 27 days depending on the origination, with
an additional four days shipping time for final delivery by rail or
truck to Moscow.

## 

## Figure 1. Distribution Channel for supermarkets. Import of transatlantic products via the Greater Port of St. Petersburg.

## Figure 2. Distribution Channel for supermarkets. Delivery directly from Europe.

From Moscow and St.Petersburg, products may move further eastward by
truck or rail to cities in Siberia and beyond. In fact, some products
are shipped all the way to the Russian Far East (RFE). However, most
products destined for the RFE enter through the ports of Vladivostok,
Vostochny, Vanino, Nakhodka and Magadan. Although Vostochny is the
region's largest port by volume, the majority of U.S. food exports to
the Russian Far East enter through Vladivostok.

## 

## CREDIT AND PAYMENT TERMS

There is a rapid evolution in the Russian banking system, and banks
every year are getting closer to meet international standards. Still
getting a credit is relatively expensive and can be difficult to
arrange. There can be obstacles to receiving a credit in Russia if the
company is 100% foreign owned. In order to receive a credit at a Russian
bank, you need to present a package of documents; a successful balance
showing profits for the last 3 quarters among those and it would be
helpful to have assets on the balance that could completely cover the
bank's risks.

In addition, Russian bank fees are often high, and it can take much
longer to open letters of credit or transfer funds than is common in the
United States. However, as the economy improves, the financial
operations of Russian banks also are improving. About half the banks
that are authorized to open foreign currency accounts also have general
licenses enabling them to undertake a full range of foreign currency
transactions. Many of these banks have correspondent banks in the United
States. Further, several American and foreign banks such as Citibank,
J.P. Morgan, Raffeissenbank, Societe Generale, and Credit Suisse are
licensed to operate in Russia.

Not all of the Russian importers are accustomed to making 100 percent
prepayment prior to shipment. Your regular customers would eventually
expect you to ship in credit, (and that's the way it is provided by many
western, particularly European companies) and pay when the product
arrives in the Russian port or in some cases, make a prepayment and pay
the balance when the product hits their storage. Many companies do not
like to "freeze their money" for 30 days or more. Like everywhere else,
it takes time to build a trusting relationship. You always need to think
well on how to work with each particular company, sometimes getting a
reference from an expert in this market can be very helpful. Where
business relationships have become well established, simple bank
transfers often are made on the basis of payment on delivery or payment
after an agreed number of days. A letter of credit (LC) may be used when
required by the foreign supplier, but LCs are expensive and sometimes
difficult to arrange, so this is not a favored payment method.
Documentary Collections work very well at ports and importers are
accustomed to these procedures.

USDA credit guarantee programs (Supplier Credit, GSM-102) can help
overcome some of these financing problems. The credit guarantee program
operates with a specific country program for Russia and Russia also is
included in a separate Eurasia program. At present Supplier Credit is
not available worldwide due to the need for regulatory updates to the
program. For further information on these programs, please visit the FAS
website ([www.fas.usda.gov](http://www.fas.usda.gov/)) the FAS Moscow
website (eng.usda.ru) or contact ATOMoscow (see SECTION V. KEY CONTACTS
AND FURTHER INFORMATION).

## FOOD STANDARDS AND REGULATIONS

Please, review the Moscow Agricultural Affairs Office (AAO), Moscow
FAIRS Reports RS5025, RS5026, RS5008, RS5009
<http://www.fas.usda.gov/scriptsw/AttacheRep>

Russia has complex food import regulations and exporters should
carefully question importers regarding certificates and procedures
needed for clearance into the Russian Federation. USDA has provided
substantial reporting on these issues in the reports listed above and on
our website <http://eng.usda.ru/> at the Market Access page.

## PRICING

Product pricing for the Russian market, as elsewhere, is essentially
determined by local market conditions. In fact, retail prices can
sometimes vary significantly between relatively nearby cities and even
areas within the same city. However, with the spread of large retail
chains, pricing is becoming more competitive.

To understand how final prices and margins are determined, it is
important to understand the impact of the Russian tax system. The
product retail price is based on a several factors/assumptions:

-   Import duties vary by product, but generally range from about 5-30
    percent (see Appendix III)

-   An 18 percent value-added tax (VAT) is levied on imports at the
    point of entry (note: the VAT on some food products is only 10
    percent)

-   Customs clearance charges add about 1.25 percent The wholesale
    mark-up is typically 12-15 percent, while retail mark-up runs 35
    percent or more, depending on the product and the retailer

-   A profit tax is assessed at 39 percent of gross margin

# 

# 

# 

# SECTION III. MARKET SECTOR STRUCTURE AND TRENDS

As the Russian economy continues to grow and consumer incomes rise,
there are emerging opportunities for wide range of U.S. food products.
Following is an overview of the three major food and beverage sectors
\-- food retail, food processing and food service (HRI). While each
sector offers a unique set of challenges, there are also many
interesting possibilities for U.S. exporters. For more detailed
analysis, please refer to the other reports provided in *SECTION V. KEY
CONTACTS AND FURTHER INFORMATION*.

## THE RETAIL FOOD SECTOR

"This is the right time for retail"

-   Russia's retail market for food is \$ 117 billion and in the period
    of 2002 --2006 it had been increasing an average of 28.6% per year.
    By 2008 it might, according to several experts, double in size.

-   Russian retail is benefiting from foreign investments and this
    situation is likely to develop. The Russian and foreign banks have
    opened new credit lines for retail chains --a good example here is a
    credit of \$ 75 million provided by Reiffeisen Bank to
    "Perekryostok" chain of stores.

-   Modern retail formats (both local and foreign chains) are going into
    regions increasing total demand for quality products

-   Although Moscow market is not over concentrated, most retailers from
    the capital are getting into regions due to the great potential
    there. In Moscow itself the situation is becoming more complicated
    due to the deficit of available trade spaces.

-   Russia\'s economic improvement over the last five years has
    increased consumer purchasing power and demand for quality products

Overall, today the situation in retail can be characterized by the
increasing concentration of trade and the growing significance of
strategic planning. The global players came to the Russian market and in
short periods have conquered the leading positions. These companies,
which already had an experience on the markets of Asia, Mexico and
Eastern Europe, here feel self-confident and now define standards for
the industry.

According to experts, modern formats will actively replace little stores
and businesses by offering quality products, a variety of choice and
attractive prices.

Starting in 2001, several retail chains began to offer private label
products. Nowadays, Ramstor, Metro Cash&Carry, Spar, Pyaterochka,
Kopeika, 7Continent and others are developing their private label
products and hoping that consumer awareness will increase. So far,
consumers are doubtful about the quality of such goods and believe that
private label products are for people who are willing to save money.
This most likely happens because packaging doesn't meet consumers'
expectations. According to an AC Nielsen survey conducted in 2005 among
Internet users, 60% of Russian citizens consider private label able to
compete with branded products, which is lower than the results of
Western Europe (about 80-85 percent), but higher than in such countries
as India, China, Poland (55-50 percent). According to experts, the
leaders of private label products are milk, cheese, water, ready-to-eat
cooled meals. Retail chains announce their plans to increase the share
of private label products in their outlets to the level of 10-12% next
year.

Listing fees and strict quality requirements are becoming a stumbling
block between modern format retail outlets and producers. According to
expert evaluation, suppliers have to pay \$200 -- 300 for each unit they
plan to sell in the outlet. Still, in fresh produce, meat and fish
departments products that are supported by marketing programs sponsored
by a supplier can get listed in the store with a discount. In produce
and meat departments, for high quality goods, sometimes listing fees are
waived entirely.

## THE HOTEL, RESTAURANT, AND INSTITUTIONAL (HRI) SECTOR

-   Sharp increases in consumer income, pent-up consumer demand, and
    expanding tourism are creating a boom in Russia's HRI sector

-   Fast-food chains, both foreign and home-grown versions, are
    expanding by 14-16 percent annually

-   Sales for mid-level or "democratic" restaurants are growing even
    faster - as much as 30 percent per year

-   Coffee shops are seeing the fastest growth -- 20-25 percent or more
    annually

Eating out and take out food is now often connected to increasing
frequent trips to new retail formats (supermarkets, hypermarkets, and
malls) and after-work convenience foods. Cafes and fast food
establishments have capitalized on increased consumer income and desire
for convenience foods. Amazingly, experts estimate that 90 percent of
all food prepared in restaurants and cafes in Western Russia is
imported.

There are only about 15 restaurants in Moscow and 10 restaurants in St.
Petersburg that serve American cuisine. There are hundreds of Italian
restaurants. This is one way American products are disadvantaged. They
are not as visible Key concerns that are important to Russian
restaurants are food or ingredient price and availability. Price is an
obvious concern for most restaurants because of the large number of
individual, independent owners. They typically purchase on a small scale
and generally have a demanding, but price sensitive clientele. Showing
restaurants how to maximize the value of a product or use less expensive
substitutes is often helpful. As there are few restaurants with
significant buying power, they often work hard to find the supplier with
the best price. Lastly, developing new menu items depends on the
constant availability of U.S. products.

Established restaurants also work through one or more food service
distributors, both wide-spectrum and specialized distribution companies.
While many restaurants like having a large choice of products from one
company, many continue to work with the specialized suppliers because of
their client orientation and convenient delivery services. Some
restaurants also purchase ingredients through cash and carry retailers.
Though this is more common for small restaurants and cafes, low prices
on bulk items attract a variety of HRI consumers.

This segment is full of opportunities for U.S. exporters because of the
wide variety of imported foods used and the wide range of qualities
(from premium to economy) demanded from different customers. It is very
easy to find a niche for any product. The best prospects are for bakery
ingredients, meat, seafood, and wine.

Please refer to GAIN Report Number: RS5060 for further information on
HRI sector in Western Russia.
http://www.fas.usda.gov/scriptsw/AttacheRep/

## 

## 

## 

## 

## THE FOOD PROCESSING SECTOR

-   Local processors more and more must meet international quality
    standards. They pay more attention to quality of ingredients they
    use.

-   Russian food processing companies continue to expand and modernize
    their production facilities. This stipulates their demand for high
    quality ingredients.

-   Local food industry has become one of the most dynamic sectors of
    the Russian economy, with an average increase of 15-20 percent per
    year.

# 

Russia\'s food processing industry has been growing rapidly in recent
years, with a significant output increase of 25 percent in 2003, which
was valued at \$32.5 billion. In 2004, reports are that the industry
grew 18 percent. Consumer markets are not yet saturated with products.
These trends are expected into the future keeping prospects bright for
continued development at the pace of 10-15% a year. Most local food
processors trying to compete in the market are quality-oriented, rather
than price-oriented ingredient consumers. Many companies report that raw
resources and specialized ingredients for meat, bakery, confectionary,
juice, and dairy processing available from Russia domestically are not
sufficient to satisfy their needs in the future.

# SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS

**"Hot picks" -- best US Export opportunities for Russia**

The top US products exported in Russia in 2005 --and the first half of
2006 are as follows: nuts (almonds and pistachios), fish and seafood,
fresh fruit and vegetables, livestock and poultry genetics, pork,
poultry, snacks, including popcorn, food ingredients including soybean
isolates and/or flakes and hide and skins. Cheese is a new opportunity.
Russia's imports are quite large and a major tariff obstacle will be
suspended by December 2006. Wine and spirits are also exported
successfully.

Russia's imports from the United States, while dominated by poultry,
have begun to diversify. Red meat (beef and pork) exports were down in
2004 due to the ban Russia imposed on U.S. exports after the discovery
of BSE in the United States in 2003. This ban hit hardest beef liver
imported primarily by Russia for use in the meat processing industry.
While overall red meat exports were off, U.S. pork is doing quite well,
jumping 640% last year. As a group, food ingredient exports were down in
2004, due only to non-economic reasons related to one specific
component. All other food ingredients saw staggering 88% growth. Tree
nuts (such as almonds), seafood, and snack foods all grew impressively
last year and have a bright future. While fresh fruits and wine sales
appear to be quite moderate, official statistics underreport this trade
due to heavy transshipments to Russia through Europe.

There's a good growing market in Russia for American fruit, particularly
apples and pears. Russian customers prefer larger sizes of apples and
pears, which differ from the West, where small sizes are favored. The
absolute favorite American apple in Russia is Red Delicious, but there's
a good demand for Golden Delicious and Braeburn. There's a misperception
of American Granny Smith apples, because the buyers dislike yellow
sunburn. The most popular American pears are Green Anjou, Red Anjou and
Bartlett. In winter American apples and pears hardly meet any
competition because of their good appearance and the fact that they can
be stored year round. There's a market for American citrus and grapes
yet to be explored.

###### 

Following are suggested best prospects for U.S. exporters by sector:

+---+-------+-------+------+-------+--------+-----------+----------------+
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| F |       |       | 3.75 | 12.7% | A      | Strong    | Good potential |
| r |       |       | mmt  |       | pples: | co        | as a niche     |
| e |       |       |      |       |        | mpetition | market for     |
| s |       |       |      |       | (Jan   | from      | U.S. apples,   |
| h |       |       |      |       | 1-Jul  | Poland,   | pears, grapes, |
| F |       |       |      |       | 31)    | China,    | citrus.        |
| r |       |       |      |       |        | Chile,    | Especially     |
| u |       |       |      |       | 0.1    | New       | during         |
| i |       |       |      |       | Euros  | Zealand,  | February-      |
| t |       |       |      |       | per kg | Moldavia  | April period.  |
| s |       |       |      |       |        | for       |                |
|   |       |       |      |       | (Aug   | apples;   |                |
|   |       |       |      |       | 1-Dec  | Argentina |                |
|   |       |       |      |       | 31)    | and China |                |
|   |       |       |      |       |        | for       |                |
|   |       |       |      |       | 0.2    | pears.    |                |
|   |       |       |      |       | Euros  |           |                |
|   |       |       |      |       | per kg |           |                |
|   |       |       |      |       |        |           |                |
|   |       |       |      |       | \+ 18% |           |                |
|   |       |       |      |       | VAT    |           |                |
|   |       |       |      |       |        |           |                |
|   |       |       |      |       | Pears: |           |                |
|   |       |       |      |       |        |           |                |
|   |       |       |      |       | 10% +  |           |                |
|   |       |       |      |       | 18%    |           |                |
|   |       |       |      |       | VAT    |           |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| D |       | Rais  | Rai  | 10.7% | 5%,    | Tough     | U.S. raisins   |
| r |       | ins - | sins |       | but    | co        | and prunes     |
| i |       | \$162 | -    |       | not    | mpetition | competitive    |
| e |       | tho   | \$24 |       | less   | from      | for quality    |
| d |       | usand | mil  |       | than   | Iran,     | retail and     |
| f |       |       | lion |       | 0.02   | Ta        | processing     |
| r |       |       |      |       | Euros  | jikistan, | market.        |
| u |       |       |      |       | per kg | Af        |                |
| i |       |       |      |       | +      | ghanistan |                |
| t |       |       |      |       |        | and       |                |
| s |       |       |      |       | 18%    | U         |                |
|   |       |       |      |       | VAT    | zbekistan |                |
|   |       |       |      |       |        | for bulk  |                |
|   |       |       |      |       |        | dried     |                |
|   |       |       |      |       |        | fruits.   |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| T |       | N     | Nu   | Nuts  | Tariff | Iran      | U.S. almonds   |
| r |       | uts - | ts - | --    | de     | biggest   | enjoying very  |
| e |       | \$5   | \$23 | 29%   | pends, | c         | strong growth. |
| e |       | mi    | mil  |       | 18%    | ompetitor | Good potential |
| n |       | llion | lion |       | VAT    | for       | for U.S.       |
| u |       |       |      |       |        | peanuts   | pecans and     |
| t |       | Al    | Alm  |       |        | and       | other nuts.    |
| s |       | monds | onds |       |        | pi        |                |
|   |       | --    | --   |       |        | stachios; |                |
|   |       |       |      |       |        | T         |                |
|   |       | \$4.6 | \    |       |        | ajikistan |                |
|   |       | mi    | $4.8 |       |        | for       |                |
|   |       | llion | mil  |       |        | walnuts.  |                |
|   |       |       | lion |       |        |           |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| W |       | \$2.3 | \$   | 18%   | GAIN   | Lack of   |                |
| i |       | mi    | 445  |       | Report | US wines  |                |
| n |       | llion | mil  |       | R      | p         |                |
| e |       |       | lion |       | S5009, | romotion, |                |
|   |       |       |      |       | [ww    | strong    |                |
|   |       |       |      |       | w.fas] | positions |                |
|   |       |       |      |       | (http: | of other  |                |
|   |       |       |      |       | //www. | importers |                |
|   |       |       |      |       | fas/). | (         |                |
|   |       |       |      |       |        | Moldavia, |                |
|   |       |       |      |       | us     | Burglary, |                |
|   |       |       |      |       | da.gov | France,   |                |
|   |       |       |      |       |        | Italy,    |                |
|   |       |       |      |       |        | Spain,    |                |
|   |       |       |      |       |        | Chile)    |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| F |       | \$    | \    |       | 10% +  | Recovery  | Opportunities  |
| i |       | 23.1  | $642 |       |        | in local  | for groundfish |
| s |       | mi    | mil  |       | 10-18% | catch/    | and salmon,    |
| h |       | llion | lion |       | VAT    | pr        | especially     |
| a |       |       |      |       |        | oduction, | underutilized  |
| n |       |       |      |       |        | expected  | species, for   |
| d |       |       |      |       |        | higher    | processing.    |
| S |       |       |      |       |        | prices.   | Growing demand |
| e |       |       |      |       |        |           | for high value |
| a |       |       |      |       |        |           | products for   |
| f |       |       |      |       |        |           | HRI and        |
| o |       |       |      |       |        |           | retail.        |
| o |       |       |      |       |        |           |                |
| d |       |       |      |       |        |           |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| C |       | HS1   | HS19 |       |        |           |                |
| o |       | 90590 | 0590 |       |        |           |                |
| n |       | --    | --   |       |        |           |                |
| f |       | pa    | pas  |       |        |           |                |
| e |       | stry, | try, |       |        |           |                |
| c |       | c     | ca   |       |        |           |                |
| t |       | akes, | kes, |       |        |           |                |
| i |       | b     | br   |       |        |           |                |
| o |       | read- | ead- |       |        |           |                |
| n |       |       |      |       |        |           |                |
| e |       | \$200 | \$29 |       |        |           |                |
| r |       | tho   | mil  |       |        |           |                |
| y |       | usand | lion |       |        |           |                |
|   |       |       |      |       |        |           |                |
|   |       | H     | HS   |       |        |           |                |
|   |       | S1806 | 1806 |       |        |           |                |
|   |       | --    | --   |       |        |           |                |
|   |       | choc  | c    |       |        |           |                |
|   |       | olate | hoco |       |        |           |                |
|   |       | --    | late |       |        |           |                |
|   |       | \$8.2 | --   |       |        |           |                |
|   |       | mi    | \    |       |        |           |                |
|   |       | llion | $229 |       |        |           |                |
|   |       |       | mil  |       |        |           |                |
|   |       | HS    | lion |       |        |           |                |
|   |       | 1704  |      |       |        |           |                |
|   |       | --    | HS   |       |        |           |                |
|   |       | sugar | 1704 |       |        |           |                |
|   |       | p     | --   |       |        |           |                |
|   |       | astry | s    |       |        |           |                |
|   |       | --    | ugar |       |        |           |                |
|   |       |       | past |       |        |           |                |
|   |       | \$ 1  | ry - |       |        |           |                |
|   |       | mi    | \$   |       |        |           |                |
|   |       | llion | 91   |       |        |           |                |
|   |       |       | mil  |       |        |           |                |
|   |       |       | lion |       |        |           |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| S |       | \$9   | \    | -8%   | 5% -   | Strong    | Good potential |
| n |       | mi    | $385 |       | 15%,   | co        | for high       |
| a |       | llion | mil  |       | but    | mpetition | quality U.S.   |
| c |       |       | lion |       | not    | from      | snacks:        |
| k |       |       |      |       | less   | local     | popcorn, nuts, |
| F |       |       |      |       | than   | p         | dried fruits   |
| o |       |       |      |       | 0.15   | roducers, | mixes.         |
| o |       |       |      |       | --     | including |                |
| d |       |       |      |       | 0.075  | some      |                |
| s |       |       |      |       | E      | foreign   |                |
|   |       |       |      |       | uro/kg | brands    |                |
|   |       |       |      |       | (duty  | such as   |                |
|   |       |       |      |       | d      | Lay's     |                |
|   |       |       |      |       | epends | (PepsiCo) |                |
|   |       |       |      |       | on     | and       |                |
|   |       |       |      |       | pr     | Estrella  |                |
|   |       |       |      |       | oduct, | (Kraft)   |                |
|   |       |       |      |       | size   | --        |                |
|   |       |       |      |       | of     | Pringles  |                |
|   |       |       |      |       | pa     | from      |                |
|   |       |       |      |       | ckage, | Europe.   |                |
|   |       |       |      |       | sugar  |           |                |
|   |       |       |      |       | co     |           |                |
|   |       |       |      |       | ntent, |           |                |
|   |       |       |      |       | e      |           |                |
|   |       |       |      |       | tc.) + |           |                |
|   |       |       |      |       | 10% -  |           |                |
|   |       |       |      |       | 18%    |           |                |
|   |       |       |      |       | VAT    |           |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| R |       | 0.002 | 0.46 | 12%   | 10%,   | Some      | Opportunity    |
| i |       | MMT   | MMT  |       | but    | local     | for high       |
| c |       |       |      |       | not    | p         | quality U.S.   |
| e |       |       |      |       | less   | roduction | rice, wild     |
|   |       |       |      |       | than   | and       | rice in HRI    |
|   |       |       |      |       | 0.03   | l         | and retail.    |
|   |       |       |      |       | Euros  | ow-priced |                |
|   |       |       |      |       | per    | co        |                |
|   |       |       |      |       | kilo + | mpetition |                |
|   |       |       |      |       | 10%    | from      |                |
|   |       |       |      |       | VAT    | Chin      |                |
|   |       |       |      |       |        | a/Vietnam |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
| W |       | 0.4   | 229  | 7.4%  | 20%, + | Co        | Existing       |
| i |       | mln   | mln  |       | 18%    | mpetition | wine-drinking  |
| n |       | l     | li   |       | VAT    | from      | culture        |
| e |       | iters | ters |       |        | locally   | getting boost  |
|   |       |       |      |       |        | produced  | from GOR       |
|   |       |       |      |       |        | beer,     | policy to      |
|   |       |       |      |       |        | vodka,    | reduce hard    |
|   |       |       |      |       |        | plus wine | alcohol        |
|   |       |       |      |       |        | imports   | (vodka)        |
|   |       |       |      |       |        | from      | consumption.   |
|   |       |       |      |       |        | Europe.   | Especially     |
|   |       |       |      |       |        |           | good potential |
|   |       |       |      |       |        |           | for            |
|   |       |       |      |       |        |           | medium-priced  |
|   |       |       |      |       |        |           | wines.         |
+---+-------+-------+------+-------+--------+-----------+----------------+
| P |       | \$4   | \$61 | 15.3% | 20%,   | Strong    | Large number   |
| e |       | mi    | mil  |       | but    | local     | of pets and    |
| t |       | llion | lion |       | not    | pro       | limited        |
| f |       |       |      |       | less   | duction - | consumption    |
| o |       |       |      |       | than   | Mars has  |                |
| o |       |       |      |       | 0.16   | two       |                |
| d |       |       |      |       | Euro   | plants    |                |
|   |       |       |      |       | s/kg + | that      |                |
|   |       |       |      |       | 18%    | produce   |                |
|   |       |       |      |       | VAT    | Whiskas,  |                |
|   |       |       |      |       |        | Kitekat,  |                |
|   |       |       |      |       |        | Pedigree; |                |
|   |       |       |      |       |        | Nestle's  |                |
|   |       |       |      |       |        | Purina    |                |
|   |       |       |      |       |        | produces  |                |
|   |       |       |      |       |        | Friskies  |                |
|   |       |       |      |       |        | and       |                |
|   |       |       |      |       |        | Darling   |                |
|   |       |       |      |       |        | locally;  |                |
|   |       |       |      |       |        | other     |                |
|   |       |       |      |       |        | imported  |                |
|   |       |       |      |       |        | and local |                |
|   |       |       |      |       |        | brands,   |                |
|   |       |       |      |       |        | some very |                |
|   |       |       |      |       |        | in        |                |
|   |       |       |      |       |        | expensive |                |
+---+-------+-------+------+-------+--------+-----------+----------------+
|   |       |       |      |       |        |           |                |
+---+-------+-------+------+-------+--------+-----------+----------------+

# SECTION V. KEY CONTACTS AND FURTHER INFORMATION

***Contact Information for FAS Offices in Russia and in the United
States:***

Eric Wenberg, ATO Director

Daniil Schultz, Marketing Specialist

Natalia Camizolli, Marketing Assistant

Natalia Merinova, Administrative Assistant

U.S. Agricultural Trade Office

American Embassy

Bolshoy Devyatinskiy Pereulok 8

121099 Moscow, Russia

Tel: 7 (495) 728-5560; Fax: 7 (495) 728-5069

E-mail: <atomoscow@usda.gov>

*For mail coming from the U.S.:*

Agricultural Trade Office

PSC 77 AGR

APO, AE 09721

*For international mail*:

Agricultural Trade Office

U.S. Embassy - Box M

Itainen Puistotie 14

00140 Helsinki, Finland

*Covering Northwest Russia (St. Petersburg):*

Ksenia Evdokimova, ATO Marketing Assistant

American Consulate General

Nevskiy Prospekt, 25

191186 St. Petersburg, Russia

Tel: 7 (812) 326-2580; Fax: 7 (812) 326-2561

E-mail: <Maria.Baranova@usda.gov>

*Covering the Russian Far East (Vladivostok):*

Svetlana Ilyina, ATO Marketing Specialist

American Consulate General

Ulitsa Pushkinskaya, 32

690001 Vladivostok, Russia

Tel: 7 (4232) 300-089; Fax: 7 (4232) 300-089

E-mail: <Svetlana.Ilyina@usda.gov>

*For General Information on FAS/USDA Market Promotion Programs and
Activities:*

AgExport Services Division

Room 4939

14^th^ and Independence, SW

Washington, DC 20250

Tel: (202) 720-6343; Fax: (202) 690‑0193

**FAS Website:** [www.fas.usda.gov](http://www.fas.usda.gov/)

*For Trade Policy/Market Access Issues, General Information on the
Russian Agricultural Sector, etc:*

Allan Mustard, Minister-Counselor

Office of Agricultural Affairs

American Embassy

Bolshoy Devyatinskiy Pereulok 8

121099 Moscow, Russia

Tel: 7 (495) 728-5222; Fax: 7 (495) 728-5133 or 728 5102

E-mail: <agmoscow@usda.gov> or <agmoscow@corbina.ru>

To learn more about USDA/FAS AND ATO services please visit
http://eng.usda.ru.

## OTHER MARKET REPORTS

Attache reports on the Russian food and agricultural market are also
available on the FAS website www.fas.usda.gov\\attache.

## OTHER USEFUL CONTACTS:

The ATO/Moscow works with a large number of U.S. industry organizations,
some of which have local offices to assist U.S. exporters of these food
and agricultural products. Find these contacts at eng.usda.ru.

U.S. Poultry and Egg Export Council (USAPEEC)

E-mail: <usapeec@usapeec.ru>

U.S. Meat Export Federation (USMEF)

E-mail: <Moscow@usmef.org>

U.S. Wheat Associates

E-mail: <uswmow@dol.ru>

U.S. Grains Council (USGC)

E-mail: <fgcmow@online.ru>

Pear Bureau Northwest

E-mail: katerina@newmark.ru

Washington Apple Commission

Moscow office:

<office@bestapples.ru>

Vladivostok office:

<katerina@newmark.ru>

Almond Board of California

E-mail: Irina.Koziy@mail.ru

Pet Food Institute

E-mail: agerman@globalworks.ru

National Renderers Association

E-mail: lischenko@ane.ru

Another good source for information on doing business in Russia, the
American Chamber of Commerce which has offices in Moscow and St.
Petersburg:

American Chamber of Commerce in Russia (AmCham)

Ul. Dolgorukovskaya, Building 7, 14th floor

127006 Moscow, Russia

Tel: 7 (495) 961‑2141; Fax: 7 (495) 961‑2142

Email: <amchamru@amcham.ru>

American Chamber of Commerce in St. Petersburg

25 Nevsky Prospect, 3^rd^ Floor

191186 St. Petersburg, Russia

Tel: 7 (812) 326-2590; Fax: 7 (812) 326-2591 or 326-2561

Email: <st.pete@amcham.ru>

For questions on agricultural machinery, food processing and packaging
equipment/materials, refrigeration equipment, etc., please contact:

U.S. and Foreign Commercial Service

Bldg. 2, 23/38 Bolshaya Molchanovka

121069 Moscow, Russia

Tel: 7 (495) 737-5030; Fax: 7 (495) 737-5033

E-mail: moscow.office.box@mail.doc.gov

<moscow.office.box@mail.doc.gov>

## APPENDIX I. STATISTICS

+-------------------------------------------------------+--------------+
| ### T                                                 |              |
| able A: Key Trade & Demographic Information ^1/^ ^2/^ |              |
+-------------------------------------------------------+--------------+
| Agricultural Imports From All Countries (\$Billion)   | 12.9         |
| ^3/^                                                  |              |
+-------------------------------------------------------+--------------+
| Consumer Food Imports From All Countries (\$Billion)  | 7.7          |
| ^3/^                                                  |              |
+-------------------------------------------------------+--------------+
| Edible Fishery Imports From All Countries (\$Million) | 642          |
| ^3/^                                                  |              |
+-------------------------------------------------------+--------------+
| Total Population (Millions)/Annual Growth Rate (%)    | 142.8        |
+-------------------------------------------------------+--------------+
| Urban Population (Millions)/Annual Growth Rate (%)    | 105.8 / 1.3  |
+-------------------------------------------------------+--------------+
| Number of Major Metropolitan Areas ^4/^               | 13           |
+-------------------------------------------------------+--------------+
| Size of the Middle Class (Millions)/Growth Rate (%)   | 25 / 27      |
| ^5/^                                                  |              |
+-------------------------------------------------------+--------------+
| Per Capita Gross Domestic Product (US\$)^6/^          | 5,300        |
+-------------------------------------------------------+--------------+
| Unemployment Rate (%)^6/^                             | 7.6          |
+-------------------------------------------------------+--------------+
| Per Capita Food Expenditures (US\$) ^7/^              | 530,8        |
+-------------------------------------------------------+--------------+
| Percent of Female Population Employed ^8/^            | 93.4         |
+-------------------------------------------------------+--------------+
| Exchange Rate (US\$1 = 26.70 Rubles)                  | As of August |
|                                                       | 2006         |
+-------------------------------------------------------+--------------+

^1/^ Unless otherwise noted, 2004 data

^2/^ Source: Unless otherwise noted, Russian State Statistics Committee
(Goskomstat)

^3/^ Source: GTI World Trade Atlas

^4/^ Population in excess of 1,000,000

^5/^ Source: Various - based on estimate of individuals earning
US\$500-\$2,000 per month

^6/^ Source: Goskomstat

^7/^ Source: Estimate based on annual total retail food sales

^8/^ As percentage of economically-active female population (employed or
actively seeking employment)

-   female workers account for 41% of the total economically-active
    population.

The Russian economy has expanded sharply following the 1998 economic
crisis and Ruble devaluation. The table below shows this growth during
the 1997-2004 period.

+-------+-------+-------+-------+-------+-------+-------+--------+
| ###   |       |       |       |       |       |       |        |
|  Tabl |       |       |       |       |       |       |        |
| e B:  |       |       |       |       |       |       |        |
| GDP G |       |       |       |       |       |       |        |
| rowth |       |       |       |       |       |       |        |
|  (%), |       |       |       |       |       |       |        |
|  1997 |       |       |       |       |       |       |        |
| -2005 |       |       |       |       |       |       |        |
+-------+-------+-------+-------+-------+-------+-------+--------+
| **1   | **1   | **2   | **2   | **2   | **2   | **2   | **     |
| 998** | 999** | 000** | 001** | 002** | 003** | 004** | 2005** |
+-------+-------+-------+-------+-------+-------+-------+--------+
| -5.3  | 6.4   | 10.0  | 5.1   | 4.7   | 7.3   | 6.8   | 6.6    |
+-------+-------+-------+-------+-------+-------+-------+--------+
| ***So |       |       |       |       |       |       |        |
| urce: |       |       |       |       |       |       |        |
| Bus   |       |       |       |       |       |       |        |
| iness |       |       |       |       |       |       |        |
| Mo    |       |       |       |       |       |       |        |
| nitor |       |       |       |       |       |       |        |
| I     |       |       |       |       |       |       |        |
| ntern |       |       |       |       |       |       |        |
| ation |       |       |       |       |       |       |        |
| al*** |       |       |       |       |       |       |        |
+-------+-------+-------+-------+-------+-------+-------+--------+

As indicated in the following table, the Russian population is largely
urban. The two largest cities are Moscow (nine million) and St.
Petersburg (five million). Although not widely known, Moscow's total
metropolitan population of nearly 18 million makes it the largest city
in Europe. Another 12 cities across Russia have populations in excess of
one million each.

### 

<table>
<colgroup>
<col style="width: 35%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 5%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="10"><h3
id="table-c-consumer-food-edible-fishery-product-imports">Table C:
Consumer Food &amp; Edible Fishery Product Imports</h3></td>
</tr>
<tr class="even">
<td></td>
<td colspan="3"><p><strong>Imports from</strong></p>
<p><strong>the World</strong></p></td>
<td colspan="3"><p><strong>Imports from</strong></p>
<p><strong>the U.S.</strong></p></td>
<td colspan="3"><h4 id="u.s-market-share">U.S Market Share</h4></td>
</tr>
<tr class="odd">
<td></td>
<td colspan="3"><em><strong>(Million Dollars)</strong></em></td>
<td colspan="3"><em><strong>(Million Dollars)</strong></em></td>
<td colspan="3"><em><strong>(Percent)</strong></em></td>
</tr>
<tr class="even">
<td></td>
<td><strong>2002</strong></td>
<td><strong>2003</strong></td>
<td><strong>2004</strong></td>
<td><strong>2002</strong></td>
<td><strong>2003</strong></td>
<td><strong>2004</strong></td>
<td><strong>2002</strong></td>
<td><strong>2003</strong></td>
<td><strong>2004</strong></td>
</tr>
<tr class="odd">
<td><strong>CONSUMER-ORIENTED AG TOTAL</strong></td>
<td>5,617</td>
<td>6,687</td>
<td>7,735</td>
<td>535</td>
<td>534</td>
<td>529</td>
<td>10</td>
<td>8</td>
<td>7</td>
</tr>
<tr class="even">
<td>Snack Foods (excl. Nuts)</td>
<td>252</td>
<td>307</td>
<td>385</td>
<td>1</td>
<td>3</td>
<td>9</td>
<td>0</td>
<td>0</td>
<td>2</td>
</tr>
<tr class="odd">
<td>Breakfast Cereals &amp; Pancake Mix</td>
<td>11</td>
<td>11</td>
<td>10</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>2</td>
<td>2</td>
<td>6</td>
</tr>
<tr class="even">
<td>Red Meats, Fresh/Chilled/Frozen</td>
<td>1,414</td>
<td>1,426</td>
<td>1,470</td>
<td>70</td>
<td>53</td>
<td>29</td>
<td>5</td>
<td>4</td>
<td>2</td>
</tr>
<tr class="odd">
<td>Red Meats, Prepared/Preserved</td>
<td>64</td>
<td>58</td>
<td>69</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>2</td>
<td>2</td>
<td>1</td>
</tr>
<tr class="even">
<td>Poultry Meat</td>
<td>816</td>
<td>698</td>
<td>663</td>
<td>417</td>
<td>405</td>
<td>396</td>
<td>51</td>
<td>58</td>
<td>60</td>
</tr>
<tr class="odd">
<td>Dairy Products (excl. Cheese)</td>
<td>188</td>
<td>264</td>
<td>286</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>0</td>
<td>0.12</td>
</tr>
<tr class="even">
<td>Cheese</td>
<td>235</td>
<td>355</td>
<td>462</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>0</td>
<td>0</td>
<td>0.01</td>
</tr>
<tr class="odd">
<td>Eggs &amp; Products</td>
<td>12</td>
<td>16</td>
<td>22</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>6</td>
<td>1</td>
</tr>
<tr class="even">
<td>Fresh Fruit</td>
<td>742</td>
<td>1,053</td>
<td>1,463</td>
<td>3</td>
<td>2</td>
<td>3</td>
<td>0</td>
<td>0</td>
<td>0.2</td>
</tr>
<tr class="odd">
<td>Fresh Vegetables</td>
<td>224</td>
<td>377</td>
<td>416</td>
<td>1</td>
<td>1</td>
<td>2</td>
<td>1</td>
<td>0</td>
<td>0.37</td>
</tr>
<tr class="even">
<td>Processed Fruit &amp; Vegetables</td>
<td>380</td>
<td>451</td>
<td>528</td>
<td>6</td>
<td>5</td>
<td>4</td>
<td>2</td>
<td>1</td>
<td>0.85</td>
</tr>
<tr class="odd">
<td>Fruit &amp; Vegetable Juices</td>
<td>131</td>
<td>148</td>
<td>173</td>
<td>1</td>
<td>3</td>
<td>3</td>
<td>1</td>
<td>2</td>
<td>2</td>
</tr>
<tr class="even">
<td>Tree Nuts</td>
<td>23</td>
<td>25</td>
<td>31</td>
<td>6</td>
<td>4</td>
<td>5</td>
<td>26</td>
<td>16</td>
<td>16</td>
</tr>
<tr class="odd">
<td>Wine &amp; Beer</td>
<td>361</td>
<td>497</td>
<td>576</td>
<td>2</td>
<td>2</td>
<td>2</td>
<td>0</td>
<td>0</td>
<td>0.42</td>
</tr>
<tr class="even">
<td>Nursery Products &amp; Cut Flowers</td>
<td>75</td>
<td>94</td>
<td>186</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>0</td>
<td>1</td>
<td>0.01</td>
</tr>
<tr class="odd">
<td>Pet Foods (Dog &amp; Cat Food)</td>
<td>18</td>
<td>22</td>
<td>61</td>
<td>1</td>
<td>3</td>
<td>4</td>
<td>6</td>
<td>6</td>
<td>6</td>
</tr>
<tr class="even">
<td>Other Consumer-Oriented Products</td>
<td>651</td>
<td>844</td>
<td>933</td>
<td>24</td>
<td>52</td>
<td>69</td>
<td>4</td>
<td>6</td>
<td>7</td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><strong>FISH &amp; SEAFOOD PRODUCTS</strong></td>
<td>382</td>
<td>481</td>
<td>709</td>
<td>5</td>
<td>9</td>
<td>23</td>
<td>1</td>
<td>2</td>
<td>3</td>
</tr>
<tr class="odd">
<td>Salmon</td>
<td>41</td>
<td>60</td>
<td>104</td>
<td>1</td>
<td>2</td>
<td>3</td>
<td>0.19</td>
<td>3</td>
<td>2</td>
</tr>
<tr class="even">
<td>Surimi</td>
<td>11</td>
<td>21</td>
<td>34</td>
<td>1</td>
<td>2</td>
<td>6</td>
<td>4</td>
<td>10</td>
<td>17</td>
</tr>
<tr class="odd">
<td>Crustaceans</td>
<td>23</td>
<td>33</td>
<td>45</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>0</td>
<td>3</td>
<td>0.2</td>
</tr>
<tr class="even">
<td>Groundfish &amp; Flatfish</td>
<td>44</td>
<td>63</td>
<td>94</td>
<td>2</td>
<td>2</td>
<td>11</td>
<td>5</td>
<td>3</td>
<td>11</td>
</tr>
<tr class="odd">
<td>Molluscs</td>
<td>11</td>
<td>14</td>
<td>19</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>1</td>
<td>7</td>
<td>1</td>
</tr>
<tr class="even">
<td>Other Fishery Products</td>
<td>251</td>
<td>290</td>
<td>413</td>
<td>2</td>
<td>3</td>
<td>4</td>
<td>1</td>
<td>1</td>
<td>0.93</td>
</tr>
<tr class="odd">
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td><strong>AGRICULTURAL PRODUCTS TOTAL</strong></td>
<td>9,443</td>
<td>10,699</td>
<td>11,878</td>
<td>713</td>
<td>663</td>
<td>714</td>
<td>8</td>
<td>6</td>
<td>6</td>
</tr>
<tr class="odd">
<td><strong>AGRICULTURAL, FISH &amp; FORESTRY</strong></td>
<td>10,001</td>
<td>11,422</td>
<td>12,891</td>
<td>721</td>
<td>674</td>
<td>740</td>
<td>7</td>
<td>6</td>
<td>6</td>
</tr>
<tr class="even">
<td colspan="10"><em><strong>Source: FAS' Global Agricultural Trade
System using data from the United Nations Statistical
Office</strong></em></td>
</tr>
</tbody>
</table>

### 

+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| #         |       |       |       |   |            |     |     |     |
| ## Table  |       |       |       |   |            |     |     |     |
| D: Top 15 |       |       |       |   |            |     |     |     |
|  Supplier |       |       |       |   |            |     |     |     |
| s of Cons |       |       |       |   |            |     |     |     |
| umer Food |       |       |       |   |            |     |     |     |
| s & Edibl |       |       |       |   |            |     |     |     |
| e Fishery |       |       |       |   |            |     |     |     |
|  Products |       |       |       |   |            |     |     |     |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| *         |       |       |       |   | FISH &     |     |     |     |
| *CONSUMER |       |       |       |   | SEAFOOD    |     |     |     |
| -ORIENTED |       |       |       |   | PRODUCTS   |     |     |     |
| AG TOTAL  |       |       |       |   | (\$1,000)  |     |     |     |
| (\        |       |       |       |   |            |     |     |     |
| $1,000)** |       |       |       |   |            |     |     |     |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
|           | **2   | **2   | **2   |   |            | **  | **  | **  |
|           | 002** | 003** | 004** |   |            | 200 | 200 | 200 |
|           |       |       |       |   |            | 2** | 3** | 4** |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Ukraine   | 46    | 68    | 83    |   | Norway     | 1   | 1   | 3   |
|           | 1,391 | 1,443 | 1,047 |   |            | 57, | 98, | 06, |
|           |       |       |       |   |            | 484 | 650 | 623 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Brazil    | 71    | 71    | 78    |   | United     | 24, | 32, | 45, |
|           | 2,803 | 9,120 | 0,518 |   | Kingdom    | 465 | 720 | 009 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| United    | 53    | 53    | 52    |   | Denmark    | 24, | 28, | 38, |
| States    | 5,354 | 3,889 | 9,174 |   |            | 069 | 069 | 472 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Germany   | 48    | 46    | 51    |   | China      | 19, | 24, | 33, |
|           | 7,685 | 1,326 | 7,734 |   | (Peoples   | 493 | 949 | 526 |
|           |       |       |       |   | Republic   |     |     |     |
|           |       |       |       |   | of)        |     |     |     |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Poland    | 28    | 37    | 44    |   | Latvia     | 39, | 39, | 30, |
|           | 4,792 | 6,801 | 2,017 |   |            | 674 | 740 | 110 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Ecuador   | 19    | 26    | 36    |   | Mauritania | 12, | 18, | 25, |
|           | 1,361 | 1,244 | 2,174 |   |            | 233 | 940 | 641 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Ne        | 27    | 31    | 31    |   | United     | 4,  | 8,  | 23, |
| therlands | 1,722 | 9,268 | 9,013 |   | States     | 809 | 750 | 235 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Moldova,  | 17    | 25    | 28    |   | Iceland    | 532 | 3,  | 18, |
| Republic  | 3,791 | 8,946 | 4,828 |   |            |     | 462 | 465 |
| of        |       |       |       |   |            |     |     |     |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| France    | 23    | 27    | 28    |   | Lithuania  | 16, | 20, | 17, |
|           | 2,904 | 2,931 | 4,179 |   |            | 784 | 315 | 011 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| China     | 22    | 24    | 27    |   | Chile      | 6,  | 7,  | 15, |
| (Peoples  | 2,881 | 2,828 | 2,341 |   |            | 204 | 084 | 267 |
| Republic  |       |       |       |   |            |     |     |     |
| of)       |       |       |       |   |            |     |     |     |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Argentina | 7     | 14    | 25    |   | Canada     | 3,  | 3,  | 14, |
|           | 3,010 | 1,963 | 8,919 |   |            | 445 | 987 | 669 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Uz        | 8     | 12    | 23    |   | K          | 12, | 12, | 13, |
| bekistan, | 6,962 | 9,967 | 2,597 |   | azakhstan, | 952 | 658 | 502 |
| Republic  |       |       |       |   | Republic   |     |     |     |
| of        |       |       |       |   | of         |     |     |     |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Spain     | 14    | 18    | 21    |   | Argentina  | 578 | 4   | 13, |
|           | 6,682 | 7,441 | 0,414 |   |            |     | 225 | 359 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Italy     | 14    | 18    | 20    |   | Estonia    | 7,  | 5,  | 10, |
|           | 7,116 | 1,249 | 9,661 |   |            | 602 | 036 | 515 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Turkey    | 12    | 13    | 17    |   | Ukraine    | 6,  | 5,  | 9,  |
|           | 2,545 | 8,341 | 7,401 |   |            | 634 | 434 | 313 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| Other     | 1,46  | 1,78  | 2,02  |   | Other      | 44, | 66, | 94, |
|           | 5,889 | 0,222 | 3,023 |   |            | 611 | 925 | 033 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| World     | 5,61  | 6,68  | 7,73  |   | World      | 3   | 4   | 7   |
|           | 6,928 | 7,040 | 5,116 |   |            | 81, | 80, | 08, |
|           |       |       |       |   |            | 570 | 948 | 746 |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+
| #######   |       |       |       |   |            |     |     |     |
+-----------+-------+-------+-------+---+------------+-----+-----+-----+

##  

# 

#