Experts of the Analytical Center have prepared a bulletin on the development of competition on “The embargo on supply of fish in Russia: constraints and opportunities”.
Experts believe that the current situation in Russia regarding the annual embargo is limiting the volume of import on important food markets, but at the same time, opens up new opportunities for Russian producers by replacing imported products with domestic ones and by receiving state support for the development of the sector.
However, experts note that there are a number of objective factors that limit the import substitution of products in the fishing industry. Among them, the great distance between production sites and distribution centers, limitations in the transport infrastructure, administrative barriers associated with the procedure and the period of test of production by territorial administrations of Federal Service for Veterinary and Phytosanitary Surveillance. According to the experts, despite these factors, the main reason for the low attractiveness of the Russian fish market for domestic fishing and processing companies remains the relatively higher price of products on the export markets, as well as their geographical proximity.
As a measure to ensure the needs of the Russian market experts offer to increase the number of certified foreign enterprises for the supply of fish and fish products to Russia. Increasing number of independent suppliers also complicates the process of concentrating the production supply chain to Russia and the monopolization of these markets.
According to experts, supporting the development of the Russian aquaculture should be accompanied by measures to reduce internal barriers, including minimizing the administrative barriers by the Federal Service for Veterinary and Phytosanitary Surveillance during the transportation of the domestic production through the Russian territory, as well as ensuring the access to the necessary transport infrastructure and raw materials for the development of domestic production.
More information about the prices, dependence on imports, barriers to entry for external providers and barriers to entry in the domestic market - in the bulletin on the development of competition “The embargo on supply of fish in Russia: constraints and opportunities”.