BISNIS - NIS Agribusiness Report
6 OCT 95
FM AMEMBASSY MOSCOW


IMI: RUSSIAN MEAT PROCESSORS' EQUIPMENT PURCHASING PREFERENCES


1.SUMMARY

ON SEPTEMBER 21-23, COMMERCIAL ASSISTANTS ALEXANDER SOSKIN AND MICHAEL MINKEVICH ESCORTED A 24-PERSON RUSSIAN DELEGATION TO THE FOREIGN BUYER PROGRAM INTERNATIONAL MEAT INDUSTRY ONVENTION AND EXPOSITION IN CHICAGO, IL. BUSINESS COUNSELING AND DISCUSSIONS WITH RUSSIAN BUYERS GAVE SOME IDEAS ABOUT U.S. EXPORT PROSPECTS TO RUSSIAN MEAT PROCESSING COMPANIES. END SUMMARY.

2. FOLLOWING RUSSIAN CONSUMER TASTES, MEAT PROCESSORS FOCUSED ON SAUSAGE AND/OR HOT DOG MANUFACTURING AND PACKAGING EQUIPMENT. IN PARTICULAR, THEY LOOKED FOR SHELL CLIPPING/TWISTING AND LOOP ATTACHMENT MACHINERY FIRST. IN MOST CASES, THEY, HOWEVER, PREFERRED WEST EUROPEAN MACHINERY. MOSCOW VOSTRYAKOVSKY MEAT PROCESSING WORKS EXECUTIVES SIGNED A CONTRACT WITH THE DUTCH COMPANY TOWNSEND TO PURCHASE A USD 90,000 HOT DOG MAKING MACHINE CLAIMING ITS UNIQUE QUALITY AND PRODUCTIVITY. KURSK FOOD PROCESSING COMPANY DIRECTOR NEGOTIATED SUPPLY OF SAUSAGE PACKAGING MACHINES WITH POLY-CLIP SYSTEM GMBH (GERMAMY). THE DELIVERY WILL PROBABLY OCCUR BY THE END OF THE YEAR.

3. AMONG OTHER RUSSIAN PROCESSORS' GOALS WERE HIGH-PRESSURE MASSAGE CHAMBERS TO SOFTEN HUGE MEAT CHUNKS FOR FURTHER MAKING GOURMET MEAT PRODUCTS AND DEBONING AND DEFATTING EQUIPMENT. THE KURSK COMPANY SUCCESSFULLY CONDUCTED INITIAL NEGOTIATIONS TO PURCHASE THE LATTER EQUIPMENT WITH THE BETTCHER INDUSTRIES OF THE UNITED STATES (IT 8UPPLIES RUSSIA FROM ITS SWISS DIVISION).

4. THE TRADE SHOW HAS ALSO HELPED THE RUSSIAN BUYERS MAKE THEIR PLANS ABOUT THE NEAR FUTURE, KEEPING THEM ABREAST WITH THE LATEST INDUSTRY DEVBLOPMENTS. THEY SAY THAT MOST RUSSIAN CONSUMERS IN SMALL CITIES DISLIKE PRE-PACKED MEAT PRODUCTS, SO, FOR THE TIME BEING, THEY DO NOT NEED VACUUM PACKAGING MACHINERY. IN SEVERAL YEARS PROVINCIAL CONSUMERS' TASTE WILL ADVANCE FOLLOWING THAT OF THE MAJOR CITIES AND BRING ABOUT THE DEMAND FOR THIS MACHINERY.

5. ON THE OTHER HAND, RUSSIAN EXECUTIVES DO NOT BELIEVE IN THE TURNKEY MEAT PROCESSING PLANTS. THE REASONS ARE FINANCIAL CONSTRAINTS AND UNDERDEVELOPED ON-SITE INFRASTRUCTURE. ERECTING A NEW PRODUCTION ENTERPRISE WILL REQUIRE ADDITIONAL ELBCTRICITY AND WATER SUPPLIES, INDUSTRIAL WASTE DISPOSAL SYSTEMS, ETC. EXPENSES WILL PROBABLY EXCEED THE IMMEDIATE INVESTMENT IN CONSTRUCTION AND EQUIPMENT PURCHASE. FOR THE TIME BEING, RUSSIAN MEAT PROCESSING COMPANIES BUY SINGLE BQUIPMENT PIECES OR PRODUCTION LINES, AT BEST.

6. MOST VISITING RUSSIAN MEAT PROCESSORS SEEM TO BE KNOWLEDGEABLE PROFESSIONALS OPEN TO FURTHER COOPERATION. BESIDES BUYING MACHINERY, THEY ARE INTERESTED IN ADVANCED AMERICAN PRODUCTION TECHNIQUES AND WANT MORE VISITS TO THE UNITED 8TATES TO SEE MEAT INDUSTRY FACILITIES ON-SITE. IT MIGHT MAKE WORTHWHILE ORGANIZING A REVERSE TRADE MISSION TO COVER SEVERAL U.S. CITIES WITH HIGH MEAT PROCESSING CONCENTRATION.

7. BASIC CONTACTS:

VALENTIN V. DEMIDENKO, CHIEF ENGINEER
TAGANSKY MEAT PROCESSING WORKS
G, AVTOMOBILNY PR.
109029 MOSCOW, RUSSIA
PHONE: 7 (095) 287-7362
FAX: 7 (095) 278-9821

ALEXANDER V. RASSADIN, DIRECTOR
VOSTRYAKOVSKY SAUSAGE MANUFACTURING WORKS
22A, VOSTRYAKOVSKY PR.
M08COW, RUSSIA
PHONE: 7 (095) 385-1976

ANATOLY A. GULEVICH, DIRECTOR
QUSAR CO.
141, PERVOMAYSKAYA ST.
305009 KURSK, RUSSIA
PHONE/FAX: 7 (07122) 6-29-25

OLEG V. SALOV, DEPUTY DIRECTOR
YEKATERINBURGSKY MEAT PROCESSING WORKS
19, TITOVA ST.
620
085 YEKATERINBURG, RUSSIA
PHONE: 7 (3432) 25-01-04
FAX: 7 (3432) 25-05-42

@BRGEI M. TSYMBAL, DIRECTOR
NOVOROSSIYSKY MEAT PROCESSING WORKS
41, KOZLOVA ST.
353900 NOVOROSSIYSK, RUSSIA
PHONE: 7 (86134) 2-14-84
FAX: 7 (86134) 2-02-55

VICTOR V. ARKHANGELSKY, DIRECTOR
TAMBOVSKY MEAT PROCESSING WORKS
15, CHICHKANOVA ST.
392000 TAMBOV, RUSSIA
PHONE: 7 (0752) 33-44-74

VLADIMIR A. MUSHKAT, CHIEF ENGINEER
KOMSOMOLSKY MEAT PROCESSING WORKS
8, YAROSLAVSKAYA ST.
445045 TOGLIATTI, RUSSIA
PHONE: 7 (8469) 24-56-15/33-27