Wholesale Food Markets in Russia: A Forgotten Reform or Missed Opportunity?

In September 2021, the government approved the "Concept for the Development of Wholesale Food Markets." The plan was meant to launch the creation of modern wholesale food trade infrastructure. The state set several objectives:

• increase the population's access to food products;
• improve their quality;
• make pricing more transparent;
• provide agricultural producers with guaranteed sales channels.

In March 2022, the Ministry of Industry and Trade approved recommendations for creating such markets, followed in April by an implementation plan for the concept. The development of wholesale food markets (OPR) was actively discussed with participation from government representatives, industry experts, and practitioners. In June 2022, this issue was debated at the international forum "Russian Retail Week."

By early 2026, efforts to establish an OPR network in Russia had not progressed beyond methodological groundwork and adoption of strategic documents. Does the country need an OPR system? Why has systematic transformation of the wholesale sector stalled?

What is an OPR?

A wholesale food market is a venue where producers and wholesalers rent trading spaces and sell products in bulk.

Within an OPR, producers and consumers of food products meet in one place. The market organizes trade: it establishes pricing rules and facilitates settlements between participants. Typically, prices at OPRs are formed through auction principles, ensuring competitive and fair pricing.

Beyond trading spaces, the market provides participants with logistics, financial, and marketing services. An integral part of OPR operations is centralized phytosanitary and veterinary control of products by the state. Such markets typically feature warehouses, cold storage, and other infrastructure for storing products.

OPRs are usually located in areas of greatest demand concentration—near major urban centers—to ensure stable food supply for the population.

OPRs abroad

In most developed countries, wholesale food markets are a key element of the food trade system: the USA, Australia, Japan, China, and EU member states. According to estimates by the World Union of Wholesale Markets (WUWM), OPRs account for at least half of wholesale food supplies worldwide.

In most countries, the OPR system began forming in the second half of the last century as a result of public-private partnerships in food production and distribution. Spain's experience is textbook. Since 1965, the company Mercasa, whose capital is distributed between municipalities (51%), its own funds (26%), and wholesalers (23%), has managed an OPR system operating effectively in Spain's largest cities and urban areas.

Attempts to create OPRs in Russia

Russia has repeatedly attempted to create an OPR system at the national level.

In 1995, the Volgograd Wholesale Food Market (VOPR) began operations. Despite early successes, the project failed to take root and was shut down. According to the Unified State Register of Legal Entities, VOPR was liquidated.

Between 2012 and 2020, as part of the state program for agricultural development and market regulation of agricultural products, raw materials, and food, a network of wholesale distribution centers (ORC) was planned. According to estimates by the Ministry of Finance's Research Financial Institute, only 24.6% of planned capacity was introduced between 2015 and 2020.

Nevertheless, individual facilities operating similarly to OPRs do exist in Russia. For example, the RusAgroMarket distribution center in Novosibirsk, built with support from the Ministry of Agriculture.

There were other, less prominent initiatives within the industry community. However, these efforts resulted at best in isolated projects. Consequently, it must be acknowledged that an effective OPR system was never created.

Prerequisites for creating OPRs

OPR development remains relevant due to numerous problems in the wholesale food trade system: high amplitude of seasonal price fluctuations; significant product losses; outdated material and technical infrastructure; and lengthy supply chains characterized by numerous intermediaries.

The country faces acute problems of insufficient supply of certain goods, as well as growing challenges in marketing agricultural products.

Insufficient consumption

The diet of the average Russian consumer remains largely deficient in fruits and vegetables—the main product category sold through OPRs. Food consumption of these goods does not meet the Ministry of Health's rational norms: 90 kg per person per year for potatoes; 140 for vegetables; 100 for fruits and berries.

According to Rosstat data for 2024, per capita potato consumption in Russia remains 6.3% below recommended levels, vegetables 24.3% below, and fruits and berries 35% below. The data clearly show that the problem of year-round supply of fresh produce to the population remains unresolved.

Monopolization of sales channels

The decline of retail markets and fairs—an important channel for farm products—alongside the strengthening of retail chains has led to monopolization of sales by large retail structures. From 2010 to 2024, the share of chain retail in turnover increased from 17.5% to 36.2%. Meanwhile, the share of fairs and markets in retail sales declined over the same period from 12.4% to 3.8%, according to Rosstat.

The strengthening of retail chains complicates product sales for small farms. Chain retail imposes high requirements on volumes, delivery rhythm, and regularity. Small farms and agricultural organizations often cannot objectively compete with large companies for shelf space in stores.

OPRs would create alternative, more flexible sales channels for small producers.

Thus, an OPR system would, on one hand, unlock agricultural production growth potential by guaranteeing sales for farmers and, on the other, meet the population's needs for fresh produce.

Prospects for OPR development in Russia

Creating an OPR network will require major investments in warehouses, logistics, and trade infrastructure, which are only possible with active state participation. Given the acute federal budget deficit, financing such large-scale projects seems unrealistic. Moreover, the geopolitical and technological challenges currently facing the country have naturally pushed OPR construction far down the list of state goals and priorities.

What to expect?

In the absence of an OPR system as the main sales channel for small-scale enterprises, new formats of interaction between small producers and retail chains will become increasingly in demand.

Major retail chains are already implementing projects aimed at engaging farmers. For example, in 2022, retailers Magnit and X5 Group, with support from regional authorities, launched "agro-aggregators"—trading platforms for purchasing farm products. Other examples of practices promoting farmer products on shelves exist as well. However, such projects remain largely isolated and the prerogative of industry leaders.

It can be expected that in the future, with active state support, including legislative, new formats for working with small producers will be replicated and then standardized at the national level.

Russia has not developed modern wholesale food trade infrastructure following the example of most developed countries. Creating an OPR network could become an important milestone in addressing key problems of the domestic food market. However, under current political and socioeconomic conditions, the most realistic scenario is transformation of direct working mechanisms between small-scale enterprises and retail chains.