Rostislav Grigoriev: “We are waiting for a big leap”

– Where and how much does the holding company export its products?

– More or less serious supplies of pork from Russia to foreign countries began in 2019, when Vietnam opened . They know our country quite well and understand exactly what can be ordered from Russian companies. The situation with Hong Kong is approximately the same. With other countries everything is more complicated, and opening markets takes time. Taking into account all the foreign policy and economic difficulties, the results are at least quite good. In 2023, the Sibagro company exported 13 thousand tons of products. 

– How does the company manage to increase supply volumes?

– We definitely win in terms of quality. For example, in Vietnam and Mongolia we compete with manufacturers from other countries, and our products even look different in stores.

In Asian countries with a large population, the consumer gets tired of surrogate products, so natural honey from Russia is in great demand. The same applies to the meat assortment. It’s just that not all foreign consumers have had time to properly taste our pork.

– Does this require a significant amount of time?

– The culture of consumption of a particular product does not arise on its own and in a short time; sometimes it takes years to develop. For example, in Russia, some time ago, people bought meat in half carcasses or large pieces at the market. Today, the mass consumer goes to the store because he is confident in the quality and safety of meat from a large producer. There he selects the product he needs (loin, shoulder, carbonate, etc.) in a suitable cut. No need to cut, no need to think about what to cook. I read the recipe on the Internet, bought the ingredients in the store, came home and quickly prepared it.

In foreign markets, the intercultural barrier must also be taken into account. It doesn’t happen that you entered a new market, offered a familiar product at a good price, and everyone immediately started buying it. First, our pork is tasted like a foreign curiosity. But the exporter studies the preferences of the local population, works to expand the range - and a consumption culture is gradually formed.

For example, we do not perceive bones as a product, but in many countries of the global south this is almost a gastronomic norm. In Vietnam they love pork by-products - ears, tails, legs and other assortment that is unpopular in Russia. And on the contrary: the carbonate that is so popular in our country is of little interest in Mongolia; the population of this country prefers the fattier parts of the carcass.

On the one hand, such a variety of preferences creates difficulties when building a market development strategy. On the other hand, it also provides ample opportunities for fine-tuning the supply and sales of almost all types of products, right down to the internals and the same tails. The ability to adapt to these taste preferences and consumer psychology is a great competitive advantage.

– Do you have it?

- There is no limit to perfection. Currently, Sibagro accounts for 70% of Mongolian pork imports, but we continue to expand our range and constantly offer the market something new.

The company’s immediate plans include opening a full-fledged branch that will promote sausages and delicacies produced by the Tomsk meat processing plant. This will be a kind of “gastronomic embassy”, where our Mongolian counterparties will be able to taste the products and understand to whom and how they can sell them.

Then we plan to launch a production complex. The branch will prepare the market; people need to become more familiar with the company’s product range and the variety of culinary options.

– Export of meat products from the Tomsk region is limited by complex and expensive logistics. Is it necessary to develop this direction in such conditions?

– In practice, everything is not so gloomy. For companies from Yekaterinburg, Novosibirsk and Tomsk, delivery times to Asian markets are practically the same, although the first two cities are in a noticeably more advantageous transport position.

At the same time, we regularly consult with our competitors from neighboring cities regarding the optimization of export routes and procedures. The Asian market is so huge that it can simultaneously “swallow” all the volumes produced in Russia. Therefore, domestic companies abroad compete primarily with foreign manufacturers. In such a situation, it is better for Russian companies to consolidate their efforts.

As for the logistics of Sibagro supplies, our enterprises are located in Russia in such a way that this allows us to cover the main areas of the domestic market and form bases for expansion abroad. For example, exports to Asian countries (including the EAEU zone ) can be carried out from sites located in the Ural, Siberian and Far Eastern federal districts.

Tomsk has two big advantages in terms of exports. Firstly, this is a very strong production link with modern equipment and highly qualified technologists. Secondly, this is where the company’s head office is located, and accordingly, the main competencies in terms of organizing business processes are also located in Tomsk.

Therefore, entering new markets begins with the Tomsk site - it is the first to be certified in the importing country and works out all the links of interaction with counterparties. This experience is then scaled to other territorial divisions of Sibagro.

– Prospects for the development of Russian pork exports are associated primarily with the opening of the Chinese market. Is the company ready for this challenge?

– A lot of preparatory work is being done with China , and now we are at a low start.

The negotiation process with the Chinese side is not simple. This is a special culture of business communication, where no one is in a hurry, and everything is carried out at a high level. For example, top managers and company owners come to us who want to personally verify the reliability of a potential counterparty. They have verified data that Sibagro ranks second in the country in pork production, but they do not fully believe the paper. It is important for them that the company has a long history, so we take them to the company museum and reveal in detail the stages of its development. Then we organize excursions to production, which requires time to undergo a medical examination - without the appropriate certificates, entry to the facilities is prohibited.

For these reasons, such visits can last for several days, but in the end, guests leave having seen everything with their own eyes and received a comprehensive amount of information.  

– What problems may arise with organizing supplies to foreign markets?

– Each country has its own specific requirements for production conditions. For example, to work with Japan, we would have to rebuild enterprises, not for reasons of increasing the level of security, but simply because they work differently.

There are difficulties with contractors, although we carefully check them. For example, someone may not pick up a container from the port - then it has to be re-registered and the money returned through correspondent banks that are afraid of sanctions.

– How can you assess the company’s export dynamics?

– Last year, despite all the restrictions introduced, Sibagro’s export volumes remained at the previously achieved level. 2023 was a period of small, but at the same time progressive growth - according to its results, we recorded a five percent increase in the total indicator. This year, Sibagro expects an increase in export volumes of at least 15%. What will make such a leap possible? We’ll talk about it in January 2025.