ELO FOOD – Export Russia
Funded by Euregio Karelia Neighbourhood Programme 2001-2006

Objective of the project

The goal was to advance the level of expertise of food industry companies from Northern Karelia, Northern Ostrobothnia and Kainuu and to promote trade with Russia. The intention was to focus on product development activity in companies to develop production processes and improve quality control.

Main activities

• Arranging of product development training and actual product development work relating to food products; launching of a new bakery product, Cheese Rieska, in Russia, • Product testing to assess the suitability of products for the Russian market, • Arrangement of ISO 9001 quality training for farmers, • Arrangement of marketing and export training and educational trips for companies to learn about exportation of agricultural products to Russia, • Creating company-specific export folders, which were to function as the ABCs of trade with Russia; Completing research regarding starting a company in Russia; Creating price lists in Finnish and Russian as marketing material; • Completion of a marketing study.

Achievements

Product development training was arranged during the project and actual product development work relating to food products was completed. A new bakery product, Cheese Rieska, was launched in Russia as a result of this product development. In addition, product testing was completed in St. Petersburg, which was used to assess the suitability of products for the Russian market. The farmers completed ISO 9001 quality training. The project also arranged marketing training and educational trips, which were used to learn about exporting agricultural products to Russia. Also as part of the project, export training was arranged for companies, company-specific export folders which would function as the ABCs of trade with Russia were created, research was completed regarding starting a company in Russia, and price lists in Finnish and Russian were created as marketing material. The marketing study investigated the food market, foodstuff companies as well as wholesalers and retailers in the St. Petersburg and Leningrad regions. As a result of the study, a partner for the grain industry was identified. During the project, permanent distribution channels were created in the St. Petersburg area and cooperation contracts were made. The North Karelia Adult Education Centre signed a cooperation contract with the Ministry of Agriculture and Food of the Republic of Karelia. In addition, the OOO Nord-World food company from St Petersburg and the Finnish food group Luonto-Shop Oy reached a cooperation agreement. The project also worked in cooperation with the governmental bread centre of St. Petersburg. Foods were exported to St. Petersburg through Nikolai Vinonen Oy. A curd cheese facility was created in St. Petersburg during the project and used to bring refined goods and flour to the St. Petersburg market. As a tangible outcome of the project, 10 investment and training offers were obtained to begin cheese facility, berry or fish refining cooperation in the Kola peninsula and Republic of Karelia regions. The project lowered the export threshold of the food industry and illustrated the practical realities of exporting foods. Export deliveries were completed as trials during the project and they generated essential practical experiences in the field for the businesses involved. The clear conclusion of the project activities was that the resources and expertise of small food companies are not sufficient for opening export channels; instead, cooperation between companies is needed. Only large companies are able to manage export activities internally.