Kazakhstan Trading House Opened in Moscow
A trading house of Kazakhstan has been opened in FOOD CITY agricultural cluster in Moscow. Kazakh producers entered the big city’s market with products such as sweets, honey, fish specialties, meat and dairy products. It is also expected to open a pavilion selling textiles from Kazakhstan in a month. According to Sergey Zhuravlev, Deputy Head of Strategic Development of FOOD CITY [member of Kievskaya Ploshchad LLC, Chairman of the Board of Directors of which is God Nisanov], the agricultural cluster already accommodates suppliers from 24 foreign countries.
A trade and exhibition pavilion called “South Kazakhstan” was opened in FOOD CITY agricultural cluster on January 25.
Manufacturers of the South Kazakhstan Region are ready to offer Russian consumers meat products and specialties, canned fruit and vegetables, fish specialties, dairy products, confectionery, groceries, tea, Kazakh honey, etc.
The pavilion was opened in accordance with Kazakh traditions - to the tune of folk songs played on dombra. The red ribbon was cut by Omar Abramov, CEO of FOOD CITY; Saparbek Tuyakbaev, Deputy Akim of the South Kazakhstan Region; and Gulzhan Bodukova, Deputy Sales Representative of Kazakhstan in Russia. According to the ancient Kazakh custom called Shashu, dozens of candies were thrown up in the air for luck [“shashu” is the Kazakh for “throw”]..
Saparbek Tuyakbaev, Deputy Akim of the South Kazakhstan Region noted that opening of a trading house in Moscow was important for development of trade relations between Kazakhstan and Russia.
“Previously, our entrepreneurs could only reach Russian market through intermediaries,” he says. “For example, Kazakh farmers brought grapes at a wholesale price of 20 rubles, while stores sold it at 100 rubles or more. It will change now. The markup will be minimal. Therefore, we offer organic food at affordable prices for residents of Moscow. In a month, we’ll start supplying cucumbers and tomatoes, followed by cabbage. In summer it will be melons, watermelons, grapes, apples and so on. What they used to bring to Russia from Europe will now be supplied by Kazakhstan. We will focus on both retail customers and wholesalers – restaurants and retail chains.”
Mr. Tuyakbaev told that they were going to start selling textiles from Kazakhstan next to the grocery department in the nearest future.
“South Kazakhstan produces cotton. Textiles are manufactured using the state-of-art technology. In the coming month, we’re going to bring carpets, clothes, and so on,” he said.
Sergey Zhuravlev, Deputy Head of Strategic Development of FOOD CITY, told that a trading house as a trade format would significantly facilitate entry of Kazakh producers in the big city’s market. According to him, more than 20 companies from Kazakhstan are already working with the trading house in FOOD CITY.
“The trading house format is one of the good opportunities for Kazakhstan producers to enter the market of the Moscow Region and Russia as a whole. In organizational terms, it is easier than when producers sell their products on their own. Otherwise it brings high costs and risks,” he said. “It is easier to build a business, if you have a trading house. That is, a company seeking to enter the market can do this through a representative office by showing samples of their products. When sales increase, the company can rent space on its own. Thus a producer can find out whether the product is in demand, and whether it is suitable for the market in quality-price terms.”
According to Mr. Zhuravlev, products of 24 foreign countries are now available in FOOD CITY.
It should be reminded that, in 2015, trading houses were opened in the agricultural cluster by Iran, Mexico, Syria, Tunisia, Georgia, China, India, Morocco, Tajikistan, Uzbekistan, Azerbaijan, Armenia, and other countries.
“Over the year, we’ve managed to attract more than 3,000 tenants,” God Nisanov, Chairman of the Board of “Kievskaya Ploshchad,” said at the opening of trading houses of Syria and Iran in November. “They are mostly producers from Russian regions (52 regions already). More than 20 foreign companies have opened their representative houses here too. They are Latin America, Iran, Syria, Azerbaijan, and others. We are going to expand further soon. We have enough free space for any tenants wishing to join.”
The first Russian agricultural cluster FOOD CITY was opened a kilometer from the Moscow Ring Road by Kaluzhskoe highway in early September 2014. The wholesale food complex was built by analogy with the world's leading centers, such as the French Rungis, Spanish Merck, and German Berliner Markt. The cluster was built with funding by CJSC “Kievskaya Ploshchad” owned by God Nisanov and Zaralh Iliev. These entrepreneurs are also the owners of Evropeisky shopping mall, Radisson Royal Ukraine Hotel, and other shopping malls in the Moscow Region.