5-2-2013

Food Security in Agro & Food Top-sector : Opportunities for Dutch Agribusiness . One of the aims of A&F is to develop a leading Natasha Valeeva, Jo Wijnands and Siemen van Berkum international position by exporting integrated Rotterdam, January 24, 2012 systems solutions . Russian Federation is one of the priority countries . Two pilots have been selected, focused on RF needs ● Animal Protein

● Metropolitan Food Security (Moscow area)

Metropolitan Food Security: Objective Metropolitan Food Security: Current situation

. Moscow is sourced by Russian regions and imports To identify: . Physical infrastructure needs to be improved: now . Current situation and bottlenecks in the difficulties for (regional) suppliers to enter the (agro)logistic food supply chain around big cities Moscow market . Dutch business perspectives in solving these . Main objectives of Moscow City Government bottlenecks ● Creating an efficient wholesale sector, guaranteeing sales . Russian and Dutch potential private and free access for domestic products partners/investors ● Strengthening cooperation with the RF regions

● Increasing retail space, developing retail formats and How: catering . Desk research, interviews in RF and NL, SWOT

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Russian-Dutch Trade Relations Dutch Business Prospects: Logistics

Product Russian imports From the Netherlands Support Moscow City Government: (Million USD) . Share (%) Rank ● Concrete plan outside the Ring Road - to create a large Breeding cattle 47 14 2 wholesale food market with the assistance of regional One-day chickens 55 26 2 suppliers, manufacturers and farmers, small business Vegetable seeds 49 48 1 oriented Cheese 926 9 4 ● Looking at international examples, e.g. (Rungis), Eggs 78 43 1 Madrid Potatoes (consumption) 198 23 1 ● Dutch examples? Onions 156 28 1 Sweet peppers 153 32 1 ● YES – Venlo, Agriport A7 Tomato 684 4 7 ● or NEW CONCEPTS Apples 161 17 2 ● Feasibility study (McKinsey) Pears 161 13 3

Dutch case 1: Greenport Venlo Case 2: Agriport A7

• Serving a metropolitan market of 7 million • Centre for growing vegetables, German consumers agribusiness industry and logistics, 30 • Greenhouse area, minutes from Amsterdam • Consolidation centre • Large pig farms • Primary production: • Large chicken farm • Large dairy farm – Large scale glasshouses : • Harbour 500 ha growing to 1.000 ha

– Open field crops : 40.000 ha • Vegetables industry, logistics and services – Business park: 70 ha • To be added – closed fish production and processing – ICT-server centre

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Dutch Business Prospects: Export Performance Russian Agriculture

. Exporting of high quality inputs, products and 50 45 Belarus training (temporally prospect, in long run Russians will produce Netherlands themselves) 40 35 Poland ● High need for quality inputs (equipment, seeds) 30 Russian Federation ● Seasonal shortage of fresh products 25 Ukraine ● Innovative products (e.g. gourmet for restaurants) 20 ● Training on efficient en effective use of these inputs 15 10 5 0 Onion Potato Tomato Eggs Milk (ton/ha) (ton/ha) (kg/m2) (kg/hen) (ton/cow) Yields average 2008-2010 based on FAOSTAT

Dutch Business Prospects: Production Dutch Business Prospects: Potential Partners / Investors

. Dutch entrepreneurship in . Russian partners/investors: ● Dutch managers ● Governmental support at national and regional levels ● Special Investment Funds and Corporations ● Investments in production & expertise ● Russian Technology Platforms ● Creating SME consortia ● PPS initiatives by big companies . Fresh produce and logistics Expertise Center ● Retailers ● Joined with the Russian Greenhouses Association . Bank support: ● Providing Dutch expertise and knowledge ● Multilateral banks EBRD, IFC, FMO en ING ● Might be based on a commercial greenhouse company ● Focus on big initiatives – forming a consortia is important ● Spillovers: buying Dutch technology, service and . Dutch Top-Sectors: “Agro&Food” & “Horticulture” knowledge ● PIB or PPS

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Food Security in Moscow Metropolitan Area

Golden opportunities?

YES, but Not only for Dutch Dutch are not always in top of Russian mind

More information: [email protected] [email protected]

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