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March 24, 2022

Russia seeks suppliers of baby food and dairy product packaging

The country is experiencing supply disruption as foreign suppliers leave its market due to the Ukraine invasion.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the GlobalData Executive Briefing: Ukraine Conflict


Russia is seeking suppliers of baby food and dairy products packaging as sanctions from the West have led to supply disruption, according to Reuters.

The country is one of the world’s leading agriculture producers, but Western sanctions in the wake of Moscow’s invasion of Ukraine have prompted some foreign suppliers to exit the market, causing a supply crisis.

Earlier this week, multinational packaging firm Amcor revealed plans to scale down its operations in Russia.

The company also announced it would suspend all new projects and investments in the country and halt exports from it ‘as early as possible’.

Mondi said that it is considering all options for the group’s interests in Russia, including legal separation.

The company suspended operations at its Ukraine facility earlier this month.

At a government meeting, Russian Agriculture Minister Dmitry Patrushev said: “As for dairy products and baby food, I would like to note the following: in order to maintain stability in this segment due to restrictions on imports of packaging and a number of ingredients for baby food production, we are working with the business community and the trade ministry to find opportunities to replace foreign suppliers of packaging.”

Patrushev added that the Ministry of Agriculture had suggested the government set export quotas for sunflower oil to ‘maintain the stability of the situation’.

Many Russian citizens are stockpiling food products due to Western sanctions and the weakening of the rouble, despite government assurances that warehouses and distribution centres in the country are all well-stocked.

Among the most sought-after goods are sugar, buckwheat and salt.

Patrushev said: “Russia is fully self-sufficient in the main foodstuffs. There are sufficient stocks in warehouses and distribution centres, which are constantly replenished.

“In general, the Russian agriculture industry is coping with significantly increased demand for food products.”

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