Abstract
This chapter aims to analyze the potential of the Russian food market for Western food-industry companies. It also analyzes the opportunities and threats associated with this market and their implications for companies’ entry strategies. The chapter discusses Russian agriculture in order to show its close connections with the food industry. It also discusses food consumption and its trends in Russia and adopts the perspective of Western suppliers, considering options for exports and local production. Appropriate market infrastructure has been very slow in developing in Russia. There is a lack of the commodity exchanges, wholesale markets and auctions that would improve market transparency and provide clear market signals to producers. Since the 1960s, Russia has been a net importer of food and agricultural products. The political and economic crisis that occurred in autumn 1998 had an immediate effect on the Russian food market. The vertical integration of food-product chains has been the strategic response to the uncertainty of the operating environment.
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