Based on the results of the first half of 2020 alone, one can judge a significant growth in export volumes of Moscow dairy industry enterprises in terms of supplies of all types of ice cream. Thus, during this period, the volume of sales of ice cream abroad increased by as much as 35% and in monetary terms amounted to 12.76 million U.S. dollars. In physical terms - 5,34 thousand tons of the finished products.
Intensive export growth amidst the pandemic
Pessimistic expectations related to the global market decline caused by the COVID-19 pandemic have by no means come true for the ice cream producers based in Moscow and the region. Not only did the market turmoil not reduce the production volumes but it did not prevent them from increasing significantly through exports.
The directions of foreign supplies remained generally the same as in the previous years. Thus, the main buyers of dairy cold sweets remain China, the USA and Kazakhstan. But apart from them, Moscow exporters gained new foreign markets, albeit still small, but promising. These are Mongolia, Georgia, Latvia, and Israel - such a window of opportunity for Moscow region companies opened in May 2020.
Even if we consider the trends of Moscow and Moscow region ice cream producers without separating them from the supply of dairy industry products as a whole, even so there will be a noticeable increase compared to the previous period. Thus, the results of three quarters show an increase in exports of dairy products from enterprises in the Moscow region by 12% compared with the first three quarters of 2019.
The press service of the Ministry of Agriculture and Food of the Moscow region reports more detailed data obtained after summing up the results of last year. Thus, according to the department, in physical terms, the total volume of supplies to foreign buyers of dairy products, including ice cream, was 59.4 tons.
Volumes of foreign supplies of dairy products
In this segment of Russian exports the Moscow region is undoubtedly the leader, accounting for about 36% of total Russian exports of dairy products. The total amount of contracts for deliveries to foreign companies amounted to 85.8 million dollars. Last year during the same period of time 8% less similar products to the amount of 79.3 million dollars were shipped abroad. This is the second year in a row, when the Moscow region is the leader among Russian regions in terms of exports of dairy products.
In 2020, the main buyers were still the CIS countries. Apart from them, companies from the USA, Germany and China provided increased demand. The composition of supplies in these areas in terms of the total amount of contracts came out as follows: $32.9 million - dairy products, $18.9 million - cheese, $16.3 million - processed cheese, $11.3 million - yogurt, $1.5 million - ice cream.
The press service of the regional Ministry of Agriculture specifically noted the sharp increase in purchases of Moscow region ice cream by the United States. U.S. companies bought 44.6% more Moscow ice cream than during the same period last year. The total amount of supply contracts is $0.7 million.
To complete the picture, it is also worth taking a look at the 2020 situation with Russian exports of ice cream. Thus, if we take the already known data for the first half of the year, we can see practically the same growth dynamics as for the dairy farms near Moscow. The total sum of contracts on foreign deliveries of ice-cream in Russia amounted to 23,94 million USD. This is an 11% increase over the same reporting period in 2019. In physical terms, volumes amounted to 11.18 tons, and in this way the growth is even more intense than in monetary terms - by 23.7% compared to 2019.
According to global exporter statistics, Russia has also added weight, moving up five positions and solidifying its 16th place. Germany, France, Italy, the Netherlands and Belgium are still the leaders in this ranking.
Export of Moscow confectionery
If we compare the growth in exports of ice cream and dairy products from enterprises near Moscow with the export of related goods - confectionery products, we can see almost complete coincidence of trends. Thus, in the first eight months of 2020, the export volume of sweets produced by Moscow companies added 11% in monetary terms, and in physical terms - increased by 8% compared to the same reporting period of 2019.
Experts of the Moscow center for export assistance "Mosprom" gave their assessment of the prospects of Moscow export of confectionery products. The experts analyzed the nature of consumption of confectionery products in the world and made preliminary conclusions. The increased demand for confectionery products in the short term can be provided by North Africa, Asia and Middle East.
Mosprom experts connect this tendency with the fact that the growth of personal income and purchasing power of citizens has not kept up with the capabilities of the food industry in these countries. Each economy simply has not yet had time to appear the production facilities of the appropriate level, not established work, not perfected recipes, and there is not even an adequate amount of raw materials. States are planning to satisfy their demand through imports.
Director General of the center "Mosprom" Natalia Shuvalova summed up the predictions. She stated that in the near future we should expect the creation of new confectionery products with new recipes, as the market demands not only quantitative but also qualitative enrichment. It is possible that whole new brands and product lines will appear in the near future. It is likely that the cost of design and packaging will increase significantly - the promotion of new brands will require substantial investment in the visual and tactile component of the products. Moscow's confectionery exports will also be boosted by the growth in demand in the Asia-Pacific region.