Ideally, you must first find the buyer (or buyers) on organic products and already under the needs of customers planning the product range. During negotiations with potential customers, as a rule, the specific requirements that know well at the production planning phase are found. The Union of Organic Agriculture will summarize the practice of selling Russian organic products.
Sales sequence:
- Determine the types and volumes of products that can potentially make in your farm
- Make up and send a commercial offer to potential customers
- Hold preliminary negotiations with interested customers about the list of interests of interest, price, delivery conditions
- Determine with customers a standard for which you need to go through certification
- Compare offers of different customers, choose basic, define a list of products that produce
- Is it possible to test this product to produce organic agricultural technologies in your region and specifically in your farm
- Calculate the profitability of the production of this product
- Explore the stability of demand for this product
- Plan the options for a breakdown case
Determining the sales market is key, as it depends on what standard it is necessary to undergo certification.
The choice of the standard for which is certified:
If the products are planned to be sold in Russia, then certification is selected according to GOST 33980-2016.
If the products are planned to be exported, the certification must be used by world standards for the production of organic products that your customers are needed.
After the standard is selected, it must be very carefully read, including all applications to the standard. This is a document that will regulate all the processes of your production, processing, packaging, storage, transportation.
International Market of Organic Products
To date, the export market for organic products has been formed in Russia:
- There is a formed demand for deliveries from Russia of organic raw materials (oilseeds, grain, legumes) and Dortsky
• Basic sales markets - EU, USA. Potentially - China, Middle East
• There are market prices. They are installed on world stock exchanges depending on the yield this year, the balance of supply and demand. The market is dynamic, it is necessary to learn changes
• Possibility of forecasting: there are forecasts for demand and prices for the next year
• There are large, stable, experienced Russian exporting manufacturers. When choosing partners, traders are primarily focused on the stability of supplies and the authentication of organic products.
• There is a Russian trader "Sibborodukt" (https://sbp.thsib.ru/), which collects products from several organic farms in large parties, in order to get a more favorable price. There are a number of international traders interested in stable supply of Russian organic products to EU and US countries.
• There is an international trader UAB "EKO FARM" (https://www.ekofarm.lt/) Member of the Union, which works including with relatively small volumes of organic products.
• There is a certified maritime port for storing organic products in St. Petersburg - Peterburg's Port Terminal LLC.
• In Russia, there are 17 certification bodies for international standards Organic for export
Applications from international traders from the Netherlands, Great Britain, Italy, the United States, Romania, France, Germany are coming to the Union of Organic Agriculture. Demand is much higher than the offer.
The profitability of the export of organic products depends on the dollar and the euro. At this time, oilseeds are beneficial for exports. A list of agricultural cells that are in demand is changing, it is necessary to focus on fresh and proven information.
Where to find out the forecast of sought-after organic farmcultum and prices for them for the next season?
Annual forecast can be found from the company "Organic Certification" (http://sibir.bio/), participant of the Union. Organic Certification LLC has been working with Russian exporters of organic products for many years, keeps communications with traders of different countries.
The Russian market is in the formation stage. There is little competition, niche is practically free, but it still needs to be conquered. Most experts see the prospects for organic agriculture in it. For sale in the Russian market, organic products must be certified according to GOST 33980-2016.
According to expert estimates, 80% of the organic production market falls on Moscow, about 10% - to St. Petersburg and about 10% of other major cities.
The trend of development of regional sales markets is emerging - in the Caucasus and Siberia. In both regions, the price of organic products is planned to be available to the public. Example - Products of certified organic agricultural enterprise LLC "Organic Eraund", Stavropol Territory, in four positions are offered in 58 stores. For two months of work in 19 stores, products have already been put on the shelves, there are 28 stores with 28 stores and agreements are preparing. 11 stores refused to take products to implement. As a result, 81% of regional stores took organic products to implement. Develops a project for the sales of organic products. The chain of shops of farm products "Valina-Malina" in the Siberian Federal District.
In the structure of demand for Russian organic products, organic fruits, vegetables, greens, organic milk, dairy products, cheeses, groceries are in demand. In trade chains, the markup on the organic vegetables of the closed soil is 30-50%, in private and online stores 70-100%, the mark-up for organic milk in retail chains is 20-30%.
Also, in general, fresh and natural vegetables, fruits, greens, farm products of their own production of the full cycle with a short implementation, which can compete with imported, are in demand in retail chains and private stores.
There is a demand for Russian organic products in narrow segments
Organic alcohol. Grain, extraction for the "Organic" wheat compared with conventional wheat ranges from 45% to 100%, organic millet is more than 30%.
Baby food, restaurants, private stores of organic products - Seasonal vegetables, fruits, greens are in demand.
Healthy nutrition - organic soy
Channels for the sale of organic products in the domestic market
Trading networks
Russian organic products are presented in retail chains very weak, individual positions, mainly milk and dairy products, cereals, groceries. Sales of Organic Products Develop Trade Networks "ABC Taste", "Globus", "Auchan". Federal trading networks work with small and medium-sized agricultural producers on the same conditions, as with large agroholding. Requirements for trading networks small and medium agricultural producers are difficult.
For the supply of organic products on general basis, you can contact:
"Alphabet of Taste" https://av.ru/about/suppliers/ - through the form of commercial offers for suppliers
"Auchan" - https://auchan-supply.ru/ - Terms of delivery, questionnaire for suppliers
Globus https://www.globus.ru/priglashaem-k-sotrudnichestvu-cermerov/ - through the application form for farmers suppliers
When planning sales, it is necessary to study the requirements of trading networks and shops for the supply of products to the document flow between the supplier and the seller required for this IT programs, appearance, product quality, labeling, find out the conditions for returning the goods to the supplier, the need to conduct marketing stocks and other working moments concerning the interaction of the supplier and the trading network. For the sale of organic products it is necessary to lay human and financial resources.
Private specialized and online shopping
This is a fairly active sales channel, it is suitable for small and medium-sized manufacturers. In almost every region, there are specialized shops and Internet sites for the sales of organic products and healthy nutrition. They sell certified organic foods, as well as natural, farm, dietary products, as it is difficult to form an assortment only from organic products today, not enough manufacturers.
The Union of Organic Agriculture recommends that agricultural producers negotiate the supply of organic products in your area with such shops. Many of them are participants of the Union:
The Union of Organic Agriculture recommends organic producers to develop their own, direct sales:
1) through the creation of its own trading points on the basis of agricultural production
2) through social networks - "Instagram", "Facebook", "VKontakte"
Direct buyers are the most loyal, permanent and best clients who will stay with you for a long time. They personally know you trust you. Social networks are a tool for creating their own brand, where there is an opportunity to broadcast values, information about agricultural enterprises, its events, to make a brand understandable and build a key condition for sales - trust. People will see your production, its daily life and tasks, they will have an idea of the quality and differences of your products, its production conditions, your attitude to healthy eating, social mission. Products "will live" in their eyes and acquire value, she will have their own face. Social networks are a wonderful possibility of address contact with target audiences, reporting to it philosophy, principles, ideology of organic agriculture in practical examples.
Example: LLC "EkoPherma Jersey" (Brand "History in Godimovo")
Production store on the farm village Bogimovo, Kaluga region:
Page in Instagram: https://www.instagram.com/bogimovo_story/
Page in Facebook: https://www.facebook.com/bogimovo.Story
The sales system of LLC EkoPherma Jersey clearly demonstrated during the training that the Union of Organic Agriculture spent on September 28-29, 2020 on the basis of the farm in the Kaluga region. Video training can be found on the site of the Union of Organic Agriculture in the section "Training".
Consumer demand
Russian consumers are still poorly knowing the unified state sign of organic products and the organic products from the usual. At the same time, according to the Center for Social Designing "Platform", more than 60% of Russians pay great attention to healthy nutrition and want to eat natural products without chemistry. Now consumers do not associate it with organic products. They do not know that in organic products, he will immediately receive a whole complex of its main requests - the absence of GMOs, chemical additives, pesticides, eco-friendly packaging, healthy environment. It is connected with many years of no clear regulation of organic production.
Now the law is accepted, there are standards, the State Registry, a single sign of organic products, a quality confirmation system. The system has earned. Together with the increase in the level of knowledge of consumers, the demand for organic food will increase. Because only organic products give a legal guarantee to the consumer that it is made according to approved, transparent standards, tested throughout the life cycle by the competent certification authorities. Farm, ecological, bio-products are not allowed such a guarantee, their declared additional benefits are not checked by anyone. As soon as the consumer understands this, the demand for organic products will grow.
In order for the sale of organic products to increase, consumers are needed:
- Separate shelf in stores with organic products
- Barcode to verify product information on site
- Clear navigation in the store
- Information stand
(based on the study of the Center for Social Design "Platform")
Such a system has long existed in Western countries.
The demand for healthy and natural products has already grown in 2020 during a pandemic when people began to realize the importance of proper and high-quality food in maintaining immunity and the health of the body. Many trading networks of developed countries increased the sales of organic products by 20-40%. This is a long-term trend.
• Lack of competition. Consequence - overestimated prices.
• The demand for organic products is blurred by the mixing of the concepts of "Eco", "Bio", "Organic", "Farm", "Environmental"
• Strong marketing and own sales service are needed for sales in the Russian organic market.
• Trading networks
• Private healthy food stores and online shopping
• Own sales points on the basis of agricultural enterprises, social networks
In the fall of 2020, the Union of Organic Agriculture appealed to the Ministry of Agriculture of Russia, the Federation Council, the State Duma with a proposal to include organic products in a list of healthy products for supply to schools, pre-school and medical facilities on a priority basis. The idea is that if, with direct deliveries to schools from the final price of organic products, remove costs for marketing, labeling, dealers, logistics, which is up to 60% of the final price, with minimal profitability of the agricultural producer, then the organic products will be competitive at prices. The practice of supplying organic products to state institutions is in Moldova, Armenia, Sweden.
This is especially important now when the chemical press in mass food creates an additional load on immunity. Organic products are products with a transparent, controlled history, which can be traced at the same stage of production from the field to a push, in the production of which good environmental practices are applied, enshrined in the standard. Absolutely clear and understandable rules. The choice of organic products is responsible consumption, because the production of such products creates the basis of the health of the nation, does not harm ecology, retains ecosystems and wild animals, pollinkers.
The text is written in the framework of the Union of Organic Agriculture "Organic Agriculture - new opportunities. The system and practices of responsible land use, sustainable development of rural areas ", implemented using the grant of the President of the Russian Federation for the development of civil society provided by the Presidential Grants Foundation.
(Source and photo: https://soz.bio/sbyt-organicheskoy-produkcii/ On the title photo: Product store on the farm village Goghimovo, Kaluga region).