March 9, 2009
Russia plans for domestic retail market of seafood products
A Russian government official has revealed his aggressive plans for the domestic retail market of seafood products.
Head of Federal Agency for Fishery Andrei Krainy said the government works on setting up a retail chain, to be called Ocean that will buy fish products directly from producers.
Krainy said the retailer will be able to sell seafood at prices that are 30 percent to 40 percent lower than those commanded by major Russian retailers.
In an attempt to showcase the industry's excessive margins, he said that they have tracked a supply chain for capelin; its wholesale price was between RUB9 and RUB12 per kilogramme in Murmansk, north-western Russia.
He explained that capelin was sold for RUB22 and less in local stores and in the Moscow Region, it was sold at RUB80 to RUB85, while delivery costs from the Kola Peninsula has not exceeded RUB3.5 per kilogramme.
Capelin is a small northern fish of the smelt family.
He also said Ocean stores would be opened in the city of Arkhangelsk by June, adding that the chain is expected to sell franchises for its stores across Russia.
The chain's idea is a revival of the Soviet fish store chain with the same name.
US$1 = RUB35.75 (Mar 9)
