Nearly Half of All Russians Have Switched to Subsistence Farming
October 21, 2016
The percentage of Russians who grow food in their gardens has increased to 46%. At the same, food sales in stores have decreased, according to GfK Russia.
In two years, the percentage of Russians growing vegetables and fruits in their own gardens has increased from 39% to 46%. Moreover, production of their own vegetables is the main source of nutrition for the 15% of “active” gardeners, GfK Russia CEO Alexander Demidov told RBC.
“We have noticed a fairly big burst. People have been switching to growing their own produce. It is definitely a crisis,” he said, adding that the percentage of Russians engaged in subsistence farm not as a hobby, but to feed themselves, will only grow.
Irina Koziy, general director of industry news website FruitNews, confirms the trend, noting that it is most visible in medium-sized towns for now.
“Besides, there are a number of programs in the regions under which needy and large families are supplied with seed potatoes for planting in the spring. Such programs operate in Buryatia, Kuzbass, and a number of other regions,” said Koziy.
“The consumer moods of Russians have improved slightly, but they still remain in the negative zone,” notes GfK Russia’s report “The Russian Consumer 2016: Adapting to the Crisis.”
In April 2016, 53% of respondents reported the crisis had had a direct impact on their lives. In July 2016, this figure was 46%.
And yet, in reality, the actual financial circumstances of Russians have not improved. They have simply adapted to the crisis and regard the current economic reality more calmly.
“The effect of adjusting to the situation has kicked in, because people don’t believe the crisis will be resolved soon,” said Demidov. “So crisis consumerist strategies are still in effect.”
According to GfK, the vast majority of respondents (75%) said they were willing to give up purchasing certain goods. In particular, according to the company, the greatness number of Russians (17% of respondents) have been saving money by cutting out trips to beauty salons. Other expenditures that had been cut included purchases of household appliances (16%) and cosmetics (15%).
The sales of most foods have also decreased. According to GfK, during the year beginning July 2015 and ending July 2016, sales of dairy products and meat decreased in physical terms by 0.5% and 0.8%, respectively. Most of all, consumers scrimped on sweets and snacks (a 3% decrease), bread products (a 7% decrease), and fish and seafood (a 7.4% decrease). A slight increase occurred in sales of frozen products (1.1%), eggs (1.4%), fresh fruits and vegetables (1.5%), and baby food (2.2%).
During the same period, the volume in terms of price of goods purchased through promotions grew by 45%. And the share of promotions throughout the fast-moving consumer goods sector increased from 12.2% to 14.1%, according to GfK’s calculations.
Translated by the Russian Reader. Photo courtesy of russiannotes.com