Chelyabinsk Hemp Food Producer Expands Exports to Asia-Pacific

The Chelyabinsk-based food manufacturer Medal, specializing in hemp seed products, is planning to expand its exports to Asia-Pacific countries. The company, which produces 11 types of goods under the Konkom and Konoplektika brands, has obtained the necessary permits for international shipments. Previously, Medal sent a small trial batch to the United States. Experts believe that the company’s products will be competitive and in demand abroad.

Expanding International Presence

Medal, a producer of hemp seed food products, is actively working to increase its presence overseas. The Chelyabinsk company is negotiating supply agreements with countries in the Asia-Pacific region, including China, Laos, Vietnam, and Thailand. The company has already received the required documentation to ship its products. Since 2019, Medal has been exporting to neighboring countries such as Kazakhstan, Belarus, Armenia, Tajikistan, and Uzbekistan.

Product Range and Production

Medal manufactures 11 different products under the Konkom and Konoplektika brands. Their offerings include hemp oil, protein, confectionery items like candies, hemp condensed milk, packaged seeds, roasted and raw hemp kernels, and chocolate hemp spread. The company processes between 6 and 7 tons of seeds per month. This year, Medal began producing scrubs, and in July, they plan to launch chocolate bars.

The company’s products are available in both local and federal retail chains that focus on healthy foods. Medal is also in talks with major retailers such as VkusVill and Samokat. Recently, the company shipped a batch of products for sale in the U.S. via an online marketplace.

Entering the U.S. Market

“We sent products to Amazon. Our partners sell Russian goods and sweets there. They offered to distribute our products through their channels, so we shipped two pallets of candies, spreads, and condensed milk. The shipment was scheduled to arrive in June and go on sale. Within a month, we’ll know how sales are going and decide on further cooperation,” said Dmitry Ilkov, Deputy Director of Medal, in an interview with Kommersant-Yuzhny Ural.

Industry Growth and Market Trends

According to Ilkov, the number of Russian companies producing hemp-based foods has grown in recent years, and Medal itself is steadily increasing production. “There are now about ten such companies in Russia, compared to just two or three five years ago. Imported products are also entering the market. Interest is growing at a good pace. The more people learn that hemp is, above all, a healthy crop rich in vitamins and minerals, the higher the demand will be,” Ilkov noted.

Medal has been processing hemp since 2018, operating two small production facilities for hemp seed food products. According to SPARK-Interfax, the company employs ten people. Last year, Medal reported revenues of 15.1 million rubles and a loss of 2.1 million rubles. The company is owned by Director Andrey Matveev, Elena Serikova, and Dmitry Ilkov.

Expert Opinions on Export Potential

Evgeny Fomin, Chairman of the Agro-Industrial Committee of the Chelyabinsk regional branch of Opora Russia, believes that Medal’s food products will be in demand abroad, as hemp contains many beneficial nutrients and can help balance diets in the regions where it is supplied.

“First, it’s healthy; second, the taste is quite good. The only concern is how the ruble’s exchange rate will affect exports. Based on the current situation, I think the products will be competitive. Hemp oil is a unique product, comparable in health benefits to olive oil. As for hemp flour, it’s a niche product, but I believe that as the variety of dishes expands, demand for hemp flour will also grow,” Fomin said.

Fomin also noted that Western sanctions have not affected hemp product manufacturers, partly due to the small acreage devoted to hemp cultivation in Russia. “Unlike flax and rapeseed, there are no export duties on hemp. Few are engaged in its cultivation, and I don’t think any duties will be introduced for several years. Food products are not subject to sanctions, and it seems Russia is aiming to become a global leader in food production,” he commented.

He added that if stable demand continues, hemp acreage could increase as farms shift to its cultivation. He also pointed out that hemp is as profitable as sunflower, flax, milk thistle, and mustard—some of the most lucrative crops.