The growth of the market for organic products in the Russian Federation may reach 10-12% per year - experts

The Russian organic market is in its infancy, with only 0.1% of the food market and 0.3% of arable land dedicated to organic production. However, it is on the verge of significant growth, with a forecast of 10-12% annually, driven by economic growth and the integration of small farms into international markets. Currently, 80-90% of organic products in Russia are imported, but there is potential for domestic growth, especially in export-oriented industries like cereals, oilseeds, and legumes. Small-scale open field vegetable farming and dairy farming present the most promising areas for organic production. Despite challenges like increased costs and decreased productivity, high investment in milk processing is expected to drive demand for organic milk. However, the market faces barriers due to economies of scale, particularly in pig and broiler poultry farming. Globally, the organic market is projected to double by 2024, led by the USA, EU, China, and other countries, with Switzerland and Denmark showing higher retail food trade shares.