ProExport Russia
Funded by Euregio Karelia Neighbourhood Programme 2001-2006

Objective of the project

The intention of the project was to increase interaction between small and medium-sized food industry companies in North Karelia, Kainuu and Northern Ostrobothnia and companies in Russia in industries related to expertise, export and production. The goal was to reduce the financial risk related to accessing the Russian market through networking and to enable production transfer to production companies that were to be established in the target areas.

Main activities

• Assessing of the willingness of stores in Petrozavodsk to stock products made by Finnish companies, marketing channels, logistics and a study of product sales in Russia • Assessing of authorization procedures, certificates etc. needed for exporting products from Finland to Russia • Creation of a general business plan and models for the Articles of Association, start-up notifications to the trade register and business agreements for bakery companies that were planning a joint venture in Russia • Translation of company brochures in Russian, product introductions, product development • Organising of training events and the Karelian Food Forum.

Achievements

Several different types of assessments were made within the framework of the project: the willingness of stores in Petrozavodsk to stock products made by Finnish companies was studied, a logistics study was conducted on behalf of the companies, marketing channels were assessed and a study regarding product sales in Russia was completed. A general business plan and models for the Articles of Association, start-up notifications to the trade register and business agreements were created for bakery companies that were planning a joint venture in Russia. In addition, fodder export to the Republic of Karelia and the associated certifications, customs handling and risks were assessed. An export diagram model, a plant export assessment, a registration application regarding exporting grain, a GOST R certification model and quality certifications for the companies were created in association with Russia exports. Company brochures were translated into Russian. The project arranged training events in cooperation with three other projects. A total of 126 people participated in the training events, and 27 companies participated in the project activities. Through the project, product introductions were organised at the AgroExpo2005 exhibition in Petrozavodsk, store purchasers were interviewed and a market study on shiitake mushrooms was completed. The project participated in marketing the new Karburger product and in the product development of wild game sausage for the Russian market. The project also participated in organising the Karelian Food Forum, where Russian, German, American and Finnish food industry professionals and companies exchanged thoughts regarding product development, production processes and workmanship. The event generated new orders for companies as well as opportunities for product development. Through the project, company products were delivered to events held by the Petrozavodsk office of the Consulate General of Finland. Products were exported to the St. Petersburg area SuperSiwa during 2005-2006. In addition, a service point was opened at Niirala Itähuolinta Oy where products from 12 North Karelia entrepreneurs are available for sale to people crossing the border. Of the participating companies, PolarShiitake and Viinisorsa worked with export company FinTorus and were thereby able to open a distribution channel to Russia. Viinisorsa and OOO Pitkäranta entered an agreement of intent for raising wild game. An electronic trade portal was opened when Carelian Liikelahja entered a cooperation agreement with Finfood for marketing North Karelian products under the Provinssi brand. The project increased the region’s awareness of food export opportunities to Russia and improved the ability to create joint ventures.