OREANDA-NEWS. On 25 April 2008 was announced, that OJSC PAVA made a decision to change its development strategy in 2006. After studying the Russian and international flour markets, experts of the grain-processing company agreed on the issue that entering overseas markets appears the most promising strategy of the company's development. The matter is that Russia has the world's biggest rate of flour mills per person. Therefore the domestic market is oversaturated with the products of grain-processing, while the world is going trough a deficit period. The conjuncture of the international market allows to sell flour, cereals and bran at prices higher than in Russia which improves profitability of the business.

However, it should be emphasized that by making a decision to actively develop overseas markets, PAVA planned not only to maintain its current share on the domestic market, but also to expand it significantly. The process of developing the markets of new Russian regions continues up to today.

Since making the decision to be overseas markets-oriented, the company has managed to achieve a real breakthrough in that sphere. The rates of growth in export deliveries clearly show the actual data over the past 3 years. In 2005 PAVA made one export shipment of flour to Georgia - 67 tonnes. In 2006 the company began working with 2 partners from Georgia and the volumes of export increased to 535 tonnes. However, in 2007 the largest grain processor of Siberia and the Far East demonstrated the record high rates of export growth. Last year PAVA sent approximately 38,000 tonnes of its products to the far and near abroad. The company established business contacts with Tajikistan, Uzbekistan, Azerbaijan, Afghanistan and other countries, collaboration with Mongolia is being developed. Summarizing the results of 2007 PAVA became the leader in flour export among Russian grain processing companies - its share of deliveries made up 17% of the total exported flour.

In 2008 the dynamics of export sales growth can already be seen. The International Business Department entered into contracts with partners from Turkmenistan, Kyrgyzstan and Thailand, Mongolia, Afghanistan and Tajikistan; negotiations with representatives OF South-East Asian countries are being actively conducted. Today, the system of foreign sales demonstrates solid growth and steady development dynamics.

"Due to high quality of our flour and bran, they are in good demand abroad. While constantly expanding the geography of sales we maintain the already established relations. Today we may claim that our products have successfully entered overseas markets and perform well there. The ever increasing number of new offers is a testament to that. Besides, our partners often come up with an initiative of getting exclusive rights to work with our products in some countries", said Andrey Ananin, OJSC PAVA Director General.