Solid advantages
Russians are increasingly backing locally produced brands. Recent surveys show about a quarter prefer items from domestic producers, and many more want to support home-grown businesses. The push comes as classes of consumers express loyalty to local goods and a willingness to pay attention to where products come from. A 12-month window of market research by national analysts confirms a growing patriotism in food choices, with 78% indicating a preference for foods grown nearby.
More than half of shoppers highlight regional producers for their high quality and natural ingredients, while a portion is drawn by competitive prices. A quarter of buyers say they choose local options to back local manufacturers. The data suggests a robust appetite for regional supply chains and local farms across the country.
Raising the bar for local collaboration
The long-standing trend of favoring local food has gained momentum amid current economic and geopolitical tensions. This climate increases opportunities for small regional businesses to partner with large retail networks, bringing savings to customers and stability to producers. In an interview with socialbites.ca, Irina Borisenko, a Kuban family business owner, explains how cooperation with a major retailer began almost by chance. She started growing berries in 2018 and later formalized the business as an individual entrepreneur to work with stores.
During a Perm visit, she explored fruit offerings at a grocery chain and ended up meeting a store manager who connected her with the regional supplier team in Yekaterinburg. What began as a chance encounter evolved into a multi-regional collaboration. The plan initially envisioned limited distribution, but the retailer suggested expanding to all regional centers as capacity allowed. That moment marked the start of a broader, mutually beneficial partnership.
For the retailer, the primary requirements are consistent quality and reliable deliveries. The entrepreneur developed a precise delivery schedule and ensured that product quality met inspections at each stage. During peak seasons, the challenge is to coordinate harvest, packaging, and cooling so that fruit arrives to stores in prime condition. The goal was clear: deliver top-notch produce that meets the chain’s standards.
Direct-from-field shipments eliminate several handling stages, reducing stress and temperature fluctuations for delicate berries. The retailer shifted focus toward packaged products, a move that resonated with buyers and boosted sales. The partnership also opened doors for expanding crop lines, with interest in blueberries and raspberries and even potential investments in those varieties.
Irina notes that the collaboration brings stability and growth, with a shift from a single distribution center to broader federal reach across Moscow, St. Petersburg, and other major markets. The alliance represents not only business expansion but a new sense of certainty for a small producer working with a large, respected network.
For the entrepreneur, the collaboration with a national retailer is a welcome balance of trust and opportunity. It signals a durable path forward and confirms the viability of a small producer within a big retail ecosystem.
Raspberries and beyond
The collaboration centers on Novaya Yagoda, a nine-hectare agricultural operation in the Priozersky district of the Leningrad region, known for raspberries and, to a lesser extent, strawberries and blackberries. The company began supplying the retailer in 2020 after signing its first contract in 2019 and moving away from intermediaries to direct distribution with the chain. The shift reduced overhead and improved freshness, with produce picked at dawn and delivered to stores promptly.
Early audits helped raise production and align with strict standards. The company now markets under the retailer’s own brand, which streamlines promotion and concentrates resources on quality and reliability. Although demanding, the partnership has proven loyal and understanding, helping the company grow its growing area and diversify into new berries as market conditions allow. The path to growth rests on maintaining high quality while expanding the supply matrix.
As the partnership matures, the company aims to introduce new berry varieties if the harvests support them. The high standards set by a large retailer push the supplier to maintain efficiency and product integrity, ensuring customer confidence and long-term sustainability. The joint efforts are framed as a win-win: better product quality, stronger plant care, and broader offerings for customers.
Healthy momentum
Producing closer to buyers lowers logistics costs and helps preserve product quality. In this model, small producers and major retailers collaborate to ensure market stability and a steady supply of local goods. Latest figures from X5 Group show a growing network of local suppliers, including more than a thousand Russian partners in 2023, with a significant share being individual entrepreneurs and small enterprises. By year-end, X5 shelves featured products from over seven thousand suppliers, and small and medium-sized enterprises represented more than half of that network.
The Central Federal District led 2023 in new supplier onboarding, with several hundred partners joining the program. To help local producers scale, X5 launched 43 Farm Islands in 23 regions, a store-within-a-store concept created with SME support. The aim is to allow small farms to surface their goods on dedicated shelves while avoiding direct competition among local producers and expanding consumer choice.
Looking ahead, X5 plans to grow this initiative and other programs, including agricultural contracts, foragers, and the Farmer Academy training project. The bottom line is mutual benefit: retailers gain a broader, high-quality lineup; shoppers access local brands at competitive prices; and small businesses gain reliable channels for growth and sales.
At a time when local sourcing becomes a hallmark of resilience, the collaboration between small producers and large retail networks offers a practical blueprint for sustainable growth. This synergy helps keep food prices fair, supports regional economies, and strengthens consumer trust in local products. Attribution: Socialbites.ca