Russian Cereal Market is Showing Positive Dynamics

The Russian cereal market is steadily showing positive dynamics of the sales. In 2006-2010, the sales volume of cereals increased by 10.8%, i.e. from 1.08 to 1.19 million tons. In 2011, according to BusinesStat estimates, the sales volume of cereals in Russia will reach 1.196 thousand tons.

Increase in demand for cereals was triggered by the growing fast-food market. Demand for instant porridges and cereals, which are made of traditional grain. Therefore, demand for cereals is also growing.

Demand conditions the wide range of produce in the shops, and it allows consumers vary their ration.  The market presents a lot of mixed cereals, instant cereals and cereal portion packs.

Rice and buckwheat are leading in the sales volume, and account for 50% of the market turnover. The rice sales account for 28.6% of the cereal sales in physical terms, i.e. 341 thousand tons. The buckwheat sales account for 25.5%, i.e. 304 thousand tons.

Rice and buckwheat are the most expensive cereals in the Russian market. In 2010, the average retail price for rice amounted to 42.8 rubles per kilogram, buckwheat cost 40.6 rubles per kilogram. In 2010, the price for buckwheat went up by 51.4%, compared to the previous year, though, in general the per annum price hike amounted to 10.6%.