Why do Russians buy Finnish cheese?
Russian cheese retailers tell Yle that the popularity of Finnish cheese is due to its taste and price.
- Finnish cheese is very tasty and cheap, but in Russia the cheese is not tasty. I don’t want to add it to food, says a man who sells cheese.
One of Avito's cheese sellers is a man from Petrozavodsk. He also says that Finnish cheese is in great demand in Russia because of its taste.
Russia does not have a large selection of domestic cheese. Russia does not produce mold cheese or cheddar cheese, for example. Yle is described as having Russian cheese that always tastes the same despite the brand. Finnish cheese, on the other hand, is considered to be of high quality and inexpensive.
In addition to these, Finnish products have a good reputation in Russia. Before the sanctions, it was possible to buy Finnish cheese from ordinary grocery stores in Russia. Finnish cheese was more expensive than Russian cheese, but it was still available.
Today, Finnish cheeses can only be bought online or in stores selling Finnish products.
Before the sanctions, half of Oltermanni's production went to Russia
Valio, which makes Oltermann, cannot supply cheeses to Russia due to sanctions. Russia has long been Valio's most important export country.
In 2014, a ban on imports of foreign food came into force in Russia. Prior to that, half of Oltermanni's production in Finland went to Russia. Now we are talking about a few percent.
- Oltermann had a huge market share and a lot of fans in Russia before the border closed in 2014, says Elli Siltala, Valio's Senior Vice President, Sales and Marketing.
Today, the majority of Valio's products sold in Russia are locally manufactured in Russia. Valio has one plant near Moscow.
Oltermann is currently also manufactured in Russia. Valio's CEO Elli Siltala says that the cheese is made by Valio's partners and that Valio packs the cheese in Oltermann's own wrappers at its own factory.
However, Oltermann's production in Russia is low and does not meet high demand.
- The demand for Oltermanni cheese would be much higher at the moment, which we are able to offer locally.
Why doesn't Valio make more cheeses in Russia if sales are so hard? However, according to Siltala, the demand is not so high that Valio would like to establish a new cheese factory in Russia.
- We are currently investing the largest investments in dairies and manufacturing plants in Finland. We do not plan to build a cheese factory in Russia, but we make products through partners, says Siltala Valio's strategy.
Cheese too weak to sell to retailers
Prisma in Lappeenranta is told that they have been asked to buy cheeses even one pallet at a time.
What, then, is the reason why Prisms near the border are reluctant to sell cheeses to retailers?
- It is not justified to sell such a low-margin and employment-intensive product to cheese brokers when there are no other purchases. It does not support other trading, says branch director Risto Punkkinen from Lappeenranta's Prisma.
Punkkinen explains the employability of cheese sales by the fact that large sales require the constant addition of the product to the shelves. Serving Russians in stores also takes more time than Finns. Punkkinen says that the cash transaction in tax-free purchases is completely different from normal funding.
- This includes financing the products often in cash, checking passports, printing receipts and sealing purchases after the customer has packed them after payment. It takes significantly more work time compared to a regular debit card purchase.
https://yle.fi/uutiset/3-11525524