The need for modern equipment is high. In sugar, butter and fat, tobacco, yeast and confectionery sectors the processing equipment is considered to be mostly worn out. The financial crisis of 1998 made almost all foreign exporters to Russia consider establishing local production in order to bring the cost of their products down and increase their competitiveness in the local market. Some U.S. and other European companies are taking over Russian companies and are becoming solvent customers. Their number is approaching several dozens.
Foreign presence is particularly strong in soft drinks, beer and milk products sectors.
Some European food processing equipment manufacturers are finding it possible to sell on credit to Russian food processors. American cold storage and refrigeration equipment suppliers may find their niche in the Russian market as well. Russian cold storage and refrigeration plants are experiencing severe shortage of necessary refrigeration equipment. One third of such facilities require immediate renovation. Because of obsolete equipment and lack of investment resources, Russian industry could not fully exploit the chance to significantly increase overall food production.