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Russia’s quest to become an instant superpower

From the July 2017 issue.

Russia aims to become the world’s leading exporter of instant coffee in coming years.

Nestle factory in Russia

Russia plans to significantly increase the volume of supplies of instant coffee to the global market this year, thanks to the recovering domestic coffee production from the financial crisis and its consequences, according to recent statements of Alexander Tkachev, Russia’s Minister of Agriculture.

Prior to 2014, Russia exported just 10 per cent of the instant coffee it produced, with the remaining being consumed by the domestic market. However, the introduction of Western sanctions against Russia and a significant weakening of the local currency, the ruble, resulted in an increase in exports.

According to analysts of the Russian Ministry of Agriculture, this was mainly due to the fact that the supplies to the local market were no longer profitable for the majors operating in Russia.

Before 2014, the majority of coffee exports from Russia were sent to Ukraine. However, due to the ongoing tensions and the end of economic cooperation between the two countries, Ukraine is no longer a significant export market for Russian coffee.

Due to this, Russian coffee producers are paying particular attention to the European Union (EU) as a potential export market, as the demand for instant coffee there has been steadily growing since 2012 and has recently reached a 20-year high.

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