Review of the Market of Imported Cheese in RussiaResearch of the Company “AS Marketing”
According to TN VED (Tariff Nomenclature of Foreign Economic Activity of Russia), in 2011 import to Russia of all kinds of cheese and quark (foreign trade with Byelorussia not considered) saw 1% year-to-year decline in volume and 11.7% increase in value. Russia’s entry to WTO changed the situation on cheese market. Reduction of import tariffs for some kinds of cheese boosted import volume and decreased import value: during Q1-Q3 2012 cheese import saw 4% period-to-period increase in volume and 3.5% decline in value.
During Q1-Q3 2012 cheese import to Russia was mainly driven by TN VED category “other kinds of cheese” – 76% of import volume and 79% of import value. This category comprises various cheeses: Gouda, Tilsit, Edam, Feta, Camembert, Maasdam, etc. The category demonstrated negative dynamics: minus 3% in volume and minus 4% in value. The share of category “young cheeses including serum albumin cheese and quark” showed growth corresponding to the decline of the share of category “other kinds of cheese”. The categories “blue vein cheeses”, “processed cheeses” and “ground or powdered cheeses” demonstrated stability – in Q1-Q3 2012 shares of the named categories constituted respectively 1%, 5% and 1% in value.
The category “young cheeses including serum albumin cheese and quark” demonstrated positive period-to-period dynamics in Q1-Q3 2012: +27% in volume and +23% in value. The average contract price constituted 3.7 $/kg – minus 3.7% against 2011. Top five importing countries controlled about 80% of import volume in this category. Germany was the largest supplier in this category controlling 28% of import volume and value. Second large importer was Lithuania with 20% of import volume and 17% of import value of the review category. Denmark was the third with 11% of import in volume and 12% in value.
Young cheeses are supplied to Russia by more than 120 manufacturers, but about 50% of import volume is controlled by 6 companies. Products of “Pieno Zvaigzdes” (Lithuania) enjoy the highest popularity – 14% of import volume. 10% of import volume in the category of young cheeses is provided by the company “Arla Foods Amba” (Denmark). Third large importer in the review category is “Hochland Deutschland GmbH” (Germany) with 8% of import volume.
More than 100 Russian companies are importing young (unripe) cheeses but again only 6 companies provide 57% of import volume in the category. “Arla Foods Artis” is the leader with 12% of import volume in 2011. Almost the same share – 11% in volume – is controlled by “Hochland Russland” and 9% is provided by “Interprodukt”.
Import category “ground or powdered cheeses” saw 17% period-to-period increase in volume and 13% increase in value during Q1-Q3 2012. The average contract price during the same period constituted 7.05 $/kg with 3.6% period-to-period decline.
The largest supplier of ground/powdered cheeses in 2011 was Spain – 20% in volume and 40% in value. Second large importer was Estonia with 16% of import volume and just 9% of import value in the category. Poland was on the third line with 12% of import volume.
In terms of supplying companies import of ground/powdered cheeses looks as following. The leader is “Hochland Espanola S.A.” (Spain) with 20% of import volume. Second large importer in the category is dairy cooperative “E-Piim” (Estonia) with 16% of import volume. “Polser Sp. Z.O.O. President” (Poland) is on the third line with 11% of import volume.
Distribution of ground/powdered cheeses’ import between importing companies is very similar to its distribution between supplying companies because this category is mainly imported by Russian branches of foreign companies for their own needs. The leader is “Hochland Russland” with 20% of import volume. “E-Piim Rus” LLC is on the second line with 16% of import volume and “Alligator” – HoReCa supplier – is on the third line with 10% of import volume in the category of ground/powdered cheeses.
The category of imported processed cheeses demonstrated moderate period-to-period growth by 2% in volume and by 1% in value during Q1-Q3 2012. The average contract price constituted 4.1 $/kg, minus 1% against 2011.
Absolute leader of import supplies of processed cheeses to Russia is Finland – it controls 84% of import volume and 82% of its value. Second large supplying country is Germany with 9% of import volume and 11% of import value in the category.
The largest supplying company – “Valio Oy” (Finland) – controls 84% of processed cheese import in volume. “Schreiber Foods Europe GmbH” (Germany) is on the second line with 9% of import volume.
The largest importing company of processed cheeses is “Valio” LLC with 84% of import volume; 6% of import volume is provided by “Rulog” LLC.
Import category “blue cheeses and other cheeses with veins formed by Penicillium roqueforti” increased by 8% both in volume and value during Q1-Q3 2012 over the same period previous year. The average contract price remained unchanged – 6.2 $/kg.
Blue cheeses are mainly supplied to Russia by Germany – 75% of import volume and 68% of import value in the category. Second large supplier is Denmark controlling 9% both in volume and value.
In 2011 greater part of imported blue cheeses was controlled by “Hofmeister Kasewerk GmbH” (Germany) – 56% in volume. “Arla Foods Amba” was on the second line with 8% of import volume.
More than 50 Russian companies are importing blue cheeses to Russia; however there are only two leaders: “Formula” LLC and “Edel” LLC controlling 25% of import volume each. Third large importer in this category is “MDtraid” LLC with 10% of import volume.
The category of “other kinds of cheese” demonstrated no period-to-period change in volume and 8% PTP decline in value during Q1-Q3 2012. The average contract price in 2012 constituted 4.8 $/kg.
Ukraine controls the largest share of import in this category – 30% in volume and 32% in value. Second large supplier is Germany with 21% of import volume and 19% of import value. Netherlands with 13% both in volume and value is on the third line among the largest importers in the review category.
About 30% of total cheese import volume to Russia is controlled by Byelorussia. Special economical and political relations between Moscow and Minsk will stimulate further conquering of economy segment of Russian cheese market by Byelorussian manufacturers. Meanwhile European companies are getting settled in high price and premium cheeses. According to “AS Marketing’s” estimations, total volume of Russian market of imported cheese (supplies from Byelorussia considered) in 2012 exceeds 1536 thousand tons with 1-2% increase in volume.
Director “AS Marketing”