BUYERS FROM CENTRAL RUSSIA SEEKING TIES WITH U.S. FOOD EXPORTERS

1. SUMMARY. AFTER A COCHRAN PROGRAM VISIT TO THE U.S., A GROUP OF RUSSIAN FOOD IMPORTERS EXPRESSED STRONG INTEREST IN DEVELOPING FURTHER TIES WITH U.S. FOOD EXPORTERS. THIS FIRST GROUP FROM THE URALS REGION CONSISTED OF FIVE TOP SUPERMARKET OWNERS/DIRECTORS, MOST ON THEIR FIRST U.S. VISIT. U.S. AND FCS YEKATERINBURG COMMERCIAL ASSISTANT LEV KUCHEVSKY LED THE GROUP THROUGH THE FMI FOOD EXPO IN CHICAGO AFTER A TRAINING/FAMILIARIZATION SESSION AT CORNELL UNIVERSITY ORGANIZED BY USDA UNDER THE COCHRAN PROGRAM. END SUMMARY.

2. IN EARLY MAY, A URALS FOOD INDUSTRY TEAM ACCOMPANIED BY GROUP LEADER U.S. AND FCS YEKATERINBURG COMMERCIAL ASSISTANT LEV KUCHEVSKY ATTENDED A TRAINING COURSE AT CORNELL UNIVERSITY AND THEN THE FMI EXPO IN CHICAGO WHERE THEY MET UP WITH A LARGER DELEGATION FROM RUSSIA AND UKRAINE. THE URALS GROUP ENDED THEIR VISIT IN WASHINGTON D.C. WHERE THEY MET WITH OFFICIALS OF THE U.S. DEPARTMENT OF AGRICULTURE, DEPARTMENT OF COMMERCE, FOOD INDUSTRY ASSOCIATIONS AND PRIVATE COMPANIES.

3. THE URALS DELEGATION CONSISTED OF FIVE MEMBERS REPRESENTING KEY RETAIL FOOD SALES AND PROCESSING FIRMS IN THE URALS. (CONTACT INFORMATION FOLLOWS AT THE END OF THIS CABLE.) THE MARKET FOR FOOD IMPORTS IN THE URALS IS DEVELOPING VERY RAPIDLY. FOR EXAMPLE, DAILY TURNOVER AT ONE OF THE SUPERMARKETS REPRESENTED ON THE TRIP (SUPERMARKET "KIROVSKY" IN YEKATERINBURG) IS USD 150,000.

CORNELL/USDA TRAINING SEGMENT

4. ALL URALS PARTICIPANTS COMMENTED ON THE HIGH QUALITY OF THE CORNELL TRAINING COURSE ON MARKETING AND MANAGEMENT IN AMERICAN SUPERMARKETS THEY ATTENDED AT THE START OF THE VISIT. SEVERAL OF THEM REMARKED ON THE HIGHLY DEVELOPED FOOD DISTRIBUTION SYSTEM AND FLEXIBLE MANAGEMENT THAT ALLOWS AMERICAN SUPERMARKETS TO SURVIVE IN SUCH A COMPETITIVE MARKET. THEY ALSO TOURED LARGE SUPERMARKETS, SUPERSTORES AND A WINERY IN THE STATE OF NEW YORK. SOME OF THE DELEGATES REMARKED THAT THEY CAME AWAY WITH NEW IDEAS ON MODERN STORE DESIGN AND OPTIMAL LAYOUT OF GOODS. OTHERS FELT MORE CONFIDENT BECAUSE THEY FELT THAT THEIR OWN BUSINESS STRATEGY ACCORDED WITH THAT OF THE MORE EXPERIENCED AMERICAN MANAGERS. THIS TRAINING PROVED CRUCIAL TO THE SUCCESS OF THE FMI EXPO SINCE IT HELPED TO ORIENT THE RUSSIANS, EXPOSE THEM TO PRACTICAL ISSUES RELATED TO U.S. SUPERMARKETS AND DEVELOP MORE KNOWLEDGE OF THE AMERICAN FOOD MARKETING AND DISTRIBUTION SYSTEM.

FMI FOOD EXPO - CHICAGO

5. THE FMI EVENT WAS A LOGICAL CONTINUATION OF THE TRAINING. ALMOST ALL URALS DELEGATION MEMBERS ESTABLISHED SEVERAL GOOD CONTACTS WITH U.S. EXHIBITORS. U.S. EXHIBITORS COMMITTED TO MAIL THEM PROMOTIONAL MATERIALS, TECHNICAL SPECIFICATIONS, PRICE LISTS AND OTHER INFORMATION NECESSARY TO FURTHER DEVELOP NEWLY ESTABLISHED BUSINESS CONTACTS. MOST DELEGATION MEMBERS FOCUSED ON THEIR SECTORAL PRODUCT INTERESTS WHICH INCLUDED PACKAGED FOOD, JUICES, SOFT DRINKS, PRODUCE AND FOOD PROCESSING EQUIPMENT. UNFORTUNATELY, THE RUSSIAN TEAM COULD NOT PARTICIPATE IN THE EXPO'S WORKSHOPS, BECAUSE THERE WAS NO SIMULTANEOUS INTERPRETATION INTO RUSSIAN. MEETINGS IN WASHINGTON D.C.

5. IN WASHINGTON, THE U.S. DEPARTMENT OF AGRICULTURE ORGANIZED VERY USEFUL MEETINGS WITH MAJOR AMERICAN FOOD INDUSTRY ASSOCIATIONS AS WELL AS WITH PRIVATE FOOD MARKETING COMPANIES. THE RUSSIANS WERE PARTICULARLY PLEASED TO BE INVITED TO A RECEPTION HOSTED BY AND ATTENDED BY SENATOR COCHRAN.

7. ASSISTANCE PROVIDED BY GROUP LEADER KUCHEVSKY TO THE URALS TEAM INCLUDED INTRODUCTION TO EXHIBITORS, INTERPRETING DURING SOME OF THE NEGOTIATIONS AND BUSINESS COUNSELING.

RESULTS OF THE TRIP

8. DELEGATION MEMBERS RETURNED TO THE URALS VERY ENTHUSIASTIC ABOUT DEVELOPING FURTHER BUSINESS TIES WITH THE U.S. AND IMPORTING U.S. FOOD STUFFS. FOR EXAMPLE, THE GENERAL MANAGER OF THE TRADE CENTER "MARIYA" IS INTERESTED IN IMPORTING CRACKERS, COOKIES, AND MACARONI PRODUCTS. THE OWNER OF THE TRADE COMPANY "PRIMULA" PLANS TO PURCHASE JUICE FILLERS. SOME OF THE MEMBERS ALSO USED THE OPPORTUNITY TO MEET WITH THEIR OLD AMERICAN PARTNERS AS WELL AS WITH NEW PARTNERS WHO WERE NOT REPRESENTED AT THE EXPO. ALL IN ALL THIS COCHRAN PROGRAM TRIP PROVED TO BE A VALUABLE TRADE PROMOTION EVENT FOR U.S. SALES TO THE RUSSIAN SIDE.

9. CONTACT INFORMATION:

A. IGOR KOVPAK, PRESIDENT OF "SUPERMARKET
KIROVSKY", YEKATERINBURG
FAX: (3432) 472971
TEL: (3432) 472880

B. NATALYA BIKOVA, GENERAL MANAGER OF SUPERSTORE "MARIYA", YEKATERINBURG
FAX: (3432) 222567
TEL: (3432) 221356

C. RAFAIL MUKHARYAMOV, GENERAL DIRECTOR OF MILK PROCESSING COMPANY "PERMMOLOKO", PERM
FAX: (3422) 453334
TEL: (3422) 495230

D. GALINA MEZINA, OWNER AND PRESIDENT OF FOOD AND CL0THING COMPANY "PRIMULA", CHELYABINSK
FAX: (3512) 369066
TEL: (3512) 736771, 720863

E. ALEKSANDER LOGVINOV, COUNTRY DIRECTOR OF RUSSIAN-AMERICAN TRADE JOINT VENTURE "DIALOG", TYUMEN
FAX: (3452) 356266
TEL: (3452) 331115