EkoNiva Group is already off the blocks to supply China with UHT milk

Press-centre / News,

This year, EkoNiva Group will commence supplying its own UHT milk under EKONIVA brand. Such an agreement was reached during the company’s work at Sial China 2019, the 20th international food exhibition held in Shanghai, the People's Republic of China.

Two company’s booths were featured at the exhibition. The first one was an integral part of the collective booth of the Russian Federation in the DAIRY hall, the other one - an individual booth in the FOOD hall.

‘China is a very good promising market for us. The consumption of milk is rising there while the possibilities for its production are limited. The share of imported products accounts for 25 percent. We are actively negotiating the details of cooperation with Chinese partners. Plans are afoot to commence supplying dairy products this year, and UHT milk will pave the way’, says the EkoNiva Group President Stefan Duerr.

Following the results of the work at Sial China 2019, Stefan Duerr emphasised that it is safe to say China takes a positive attitude to the Russian production, but the competition is stiff. The market is supplied by local producers and the countries traditionally known for their milk and dairy products such as New Zealand and the EU countries, including Germany and the Netherlands. In addition, new players such as Poland and Belarus are penetrating the Chinese dairy market, so to forge ahead in this field, one needs to put a great deal of effort.

‘Russian producers need the governmental support here. One of the central issues is reimbursement for logistics costs. For example, deliveries from Germany to China are cheaper than from Russia, even though Russia and China are neighbours’, comments the company president.

EkoNiva Group is the largest raw milk producer in Europe, it is ranked in the top 5 world leading producers. In 2018, the holding company reached the level of 484,000 tonnes of milk (in 2017 – 297,000 tonnes). By April 2019, the average daily output increased to 2,000 tonnes of milk. The total herd exceeded 140,000 head. EkoNiva’s farming enterprises operate in Voronezh, Kursk, Novosibirsk, Kaluga, Orenburg, Tyumen, Ryazan, and Moscow oblasts as well as Altai Krai, Tatarstan, and Bashkortostan.