This post first appeared on Russia Insider
Russia keeps expanding it’s agricultural sector with increases in food production and the consumer world is noticing, especially in China.
The biggest import is flour, and the Chinese International Import Expo in Shanghai even features an exhibition of the one-millionth kilogram imported from Russia.
We’ve been writing about recently Russian leaders have been praising their country’s agricultural potential:
So it makes sense the Chinese see Russian products as a top-quality organic food. And between the two nations, business is booming.
For the first time in 13 years, Russia is back on the Chinese poultry market. And it's not just breasts, legs, and wings, which are loved on both sides of the border.
For example, people in Russia almost never eat chicken heads and feet, while the Chinese consider them to be a delicacy. Marinated or smoked, they are in demand, and, with prices being much higher, suppliers of by-products will only benefit. Chicken feet might return to Chinese shelves by as soon as the end of the year. Russia can supply up to 150,000 tons of them.
There are competitors from Europe and Australia on the milk shelves. However, fermented milk products are still exotic for the Chinese, though they are gradually getting used to this group.
Yogurts have even become fashionable, but this niche market is essentially vacant, and Russia, with its centuries-old dairy traditions, could rightfully occupy it. While certain countries are building new trade barriers, Russia and China are removing them.
Dmitry Medvedev: “As it has been mentioned, we share the same approach. We believe that everything that has been done in this area should contribute to global trade and investment exchange instead of focusing on certain countries or regions since this impedes development in general.”
The number of Russian regions supplying grain is also growing. The Chinese have opened the market for Kurgan Oblast, but the whole central and southern parts of Russia are a breadbasket with huge export potential.
Dmitry Patrushev, Russian Minister of Agriculture: “As of today, only seven regions have the right to supply grain, which is an improperly small number for us. We also discussed the possibility of supplying grain from our major grain-producing regions.”
In China, flour is still the most popular product imported from Russia. The one-millionth kilogram sold is exhibited at our booth at the International Import Expo in Shanghai. Candy is there too: Alyonka has become dear to the Chinese who are known to have a sweet tooth.
“It tastes like a strawberry chocolate.”
From honey to chanterelles, from waffles with lingonberries to cloudberry jam - the Chinese believe Russian products to be a paragon top-quality organic food. So appetites are growing.
Dmitry Medvedev: “We are talking about the possibility of reaching $200 billion in trade volume. I think that our countries can reach this figure if we actively promote cooperation in the agreed areas.”
Li Keqiang, China's PM: “Such an unprecedentedly high level is not the limit for us. We have agreed that we have huge room for development and great potential.”
This result could double by creating a single e-commerce market. It will involve small and medium businesses more actively. A draft memorandum on direct settlements in rubles and yuan has been elaborated.
Anton Siluanov, Russian Minister of Finance: “Settlement in the national currencies will be greatly welcomed by our economic agents and simplify our settlements.”
New sky-high prospects were shown at the Zhuhai air show which on Tuesday first displayed the cabin of the Russian-Chinese passenger aircraft which will challenge Boeing and Airbus. Next is a heavy civilian helicopter.
Maxim Akimov, Deputy Prime Minister: “We have no unresolved issues concerning the agreement on helicopters. A state contract will also be signed.”
It was also agreed to establish an expert group to coordinate the work within the WTO. In the trade wars, Russia and China have united in a single peaceful front.
This post first appeared on Russia Insider
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