Russian Agriculture News

Wheat exports this season may hit a record

Grain harvest reaches 131 million tonnes in net weight
Elena Maximova

| Agroinvestor |
December 10, 2020

Grain export potential - 50 million tons
E. Reasonable
Despite the pessimistic expectations of experts on the grain harvest in the middle of the year, the gross harvest indicators are quite high: according to the Ministry of Agriculture, the gross harvest reached 131 million tons in net weight - this is the second result after the 2017 record. The same was the last assessment of the analytical company ProZerno". Vladimir Petrichenko, General Director of the company, said this at the XX annual conference of Agroinvestor, Agroholdings of Russia, which is being held today in Moscow and broadcasted online.
Petrichenko recalled that the year was tense for grain growers, and mainly not because of economic factors, but because of the weather. “Until the beginning of May, many regions suffered from drought, and analysts reduced their forecasts for gross grain harvest. For example, we reduced it to 123 million tons. However, the second half of May turned out to be salutary for most producers of the Volga region and the Center - a two-month norm of precipitation fell there, and the situation on the fields improved, ”he said. The south was less fortunate: there is almost no rainfall to this day. As a result, the macroregion sank heavily in terms of harvest, the Stavropol Territory was particularly affected. Good harvest indicators were obtained in the Chernozem region and the Kaliningrad region.
Petrichenko singles out Siberia separately. "In May and June, the agrarians of Altai and the Novosibirsk region were very worried about the weather and expected harvest indicators lower than in arid and hot 2012, when the harvest in Siberia was record low and amounted to 8.7 million tons," he recalled it. However, in the end, the harvest in the macroregion was quite good - in some areas the indicators were even higher than in 2019, favorable for producers.
Now, in bunker weight, the gross grain harvest is 138 million tons, Petrichenko said. “The main intrigue is what the refactoring will be - going from bunker weight to clean weight after rework, especially for corn,” he adds. The current forecast of ProZern for this crop is 13.7-13.8 million tons, although earlier it reached 15 million tons.
Wheat harvest this year " ProZerno”Predicts at 84 million tonnes, the harvest of barley this season will also be high. In general, dry weather in autumn this season made it possible to harvest grain and oilseeds without any significant losses. “This year we will not see a“ winter ”harvest of corn and sunflower, when the harvesters enter the fields in February to complete the harvest, which could not be completed in the fall,” Petrichenko stressed.
Grain export in the new season has been maintaining high, and in some places - record rates for several months, Petrichenko noted. All this gives the experts reason to believe that in the 2020/21 season Russia will export record volumes of grain, especially the market analysts' forecasts for the export of wheat are optimistic.
Export potential of grain crops this season " ProZerno"Estimates at 50 million tons - 6 million tons higher than in the 2019/20 season, and the export of wheat may turn out to be a record one. “At the moment, we have already shipped more than 25 million tons and by February we will approach the mark of 35 million tons. The quota of 50 million tons, which can be set for grain exports, just fits into the export potential and will not have a serious impact on exports,” believes Petrichenko.
Prices for the main export grain crop - wheat - are now at a high level - they are $ 25 / t higher than the maximum level of the last season, Petrichenko compared, and this despite the fact that the dollar is more expensive than a year earlier. He believes that export prices for wheat have reached their peak and there will be no further significant growth, however, a failure is not expected either. But prices for barley may still rise, he said.
Elena Maximova

https://www.agroinvestor.ru/analytics/news/34967-eksport-pshenitsy-v-etom-sezone-mozhet-stat-rekordnym/

Chateau le Grand Vostok returned to the Kuban
8 October
945
2.5 min.
Winery Chateau le Grand Vostock is sending out news of its "revival". That's not bad.

Let us briefly recall that the enterprise was created in the early 2000s; it is officially believed that it was launched in 2003. Winemakers became a special pride of Chateau le Grand Vostock, who gave a special charm to its reputation.

These were real Frenchmen, who in those years were considered true masters of winemaking. Spouses Frank Dusener and Gael Brullon settled on the Sadovy farm, in the Crimean region of the Krasnodar Territory. They were only 26 years old, both graduates from the Agricultural Institute of Enita in Bordeaux.


photo courtesy of Chateau le Grand Vostock
photo courtesy of Chateau le Grand Vostock
As they wrote in the media at the time, they were both delighted with the Kuban, the climate, and the enchanting landscape of the foothills. They admitted that Russia in the minds of Europeans is a gloomy snowy country.

And here the climate is like in the best wine-growing regions of France. By the way, few people know, but the Taman Peninsula, for example, and the foothills of the Caucasus in the Anapa-Krymsk region are on the same latitude as the famous province of Bordeaux.

The first vineyards were planted in 2003, and a year later the bottling of wine began. History is silent from which wine material the first batches of Chateau le Grand Vostock were made: clearly not from the harvest of the first vineyards, which was only a year old.

Gradually, the enterprise expanded, new vineyards were planted, the area of ​​which in the best times reached 250 hectares, plus young vines were grown on 120 hectares for development.

But then something went wrong. Huge debts arose, and the company's management, according to rumors, instead of saving the winery, could transfer assets to other similar enterprises established nearby. anyway, things went awry at Chateau le Grand Vostock.

As a result, in the mid-2010s, the Chateau le Grand Vostock wine almost completely disappeared from the market, its production ceased. In 2018, the enterprises were declared bankrupt. His property was bought by an entrepreneur from Kaliningrad, Viktor Malkov, for only 4.6 million rubles. Kaa write in the media, he bought 64 hectares of vineyards, winery shops, equipment, transport, warehouses, etc. That is, in fact, all production facilities. The enterprise was revived, now Anatoly Patrash works as its chief winemaker , and Christian Ebener , who participated in the first opening of the enterprise in the early 2000s , again became a consultant .



Now the company says that in the "updated" Chateau le Grand Vostock two lines of wines have been launched. Table varieties: Chardonnay, Sauvignon Blanc, Aligote, Cabernet Sauvignon and Merlot.

And, probably, the premium brands of RESERVA wines:

• Chateau le Grand Vostock Le Chêne Royal Reserva

• Chateau le Grand Vostock Cuvée Karsov Reserva

• Chateau le Grand Vostock Krasnostop Reserva

It should be noted here that, apparently, the new owner of Chateau le Grand Vostock did not invest any huge amount of money in the revival of the enterprise. And this is the right strategy. The wine business in Russia is extremely risky - not only because of the climate, but also due to the whims of consumer demand.

In addition, it is difficult for "Russian winemakers" to compete with foreign ones in pricing. Without going into details, it is known that in Russia a bottle of wine made from natural raw materials cannot cost less than 300 rubles! In Europe, this wine can cost 1 euro! It's another matter that cheap wines are not imported to Russia, and you won't earn much on them.

In the Kuban region there are many examples when it was the strategic miscalculations of entrepreneurs that prevented the development of a winery. Myskhako has sunk into oblivion, Syk-Dere is in an incomprehensible position, the Ochakovo winery has disappeared. The problems are not in the quality of the fault, but in the organization of the business.
https://zen.yandex.ru/media/kuban/shato-le-grand-vostok-vernulos-na-kuban-5f7eaac115099c198afb2872

Kiko wrote:Chateau le Grand Vostok returned to the Kuban
8 October
945
2.5 min.
Winery Chateau le Grand Vostock is sending out news of its "revival". That's not bad.

Let us briefly recall that the enterprise was created in the early 2000s; it is officially believed that it was launched in 2003. Winemakers became a special pride of Chateau le Grand Vostock, who gave a special charm to its reputation.

These were real Frenchmen, who in those years were considered true masters of winemaking. Spouses Frank Dusener and Gael Brullon settled on the Sadovy farm, in the Crimean region of the Krasnodar Territory. They were only 26 years old, both graduates from the Agricultural Institute of Enita in Bordeaux.


photo courtesy of Chateau le Grand Vostock
photo courtesy of Chateau le Grand Vostock
As they wrote in the media at the time, they were both delighted with the Kuban, the climate, and the enchanting landscape of the foothills. They admitted that Russia in the minds of Europeans is a gloomy snowy country.

And here the climate is like in the best wine-growing regions of France. By the way, few people know, but the Taman Peninsula, for example, and the foothills of the Caucasus in the Anapa-Krymsk region are on the same latitude as the famous province of Bordeaux.

The first vineyards were planted in 2003, and a year later the bottling of wine began. History is silent from which wine material the first batches of Chateau le Grand Vostock were made: clearly not from the harvest of the first vineyards, which was only a year old.

Gradually, the enterprise expanded, new vineyards were planted, the area of ​​which in the best times reached 250 hectares, plus young vines were grown on 120 hectares for development.

But then something went wrong. Huge debts arose, and the company's management, according to rumors, instead of saving the winery, could transfer assets to other similar enterprises established nearby. anyway, things went awry at Chateau le Grand Vostock.

As a result, in the mid-2010s, the Chateau le Grand Vostock wine almost completely disappeared from the market, its production ceased. In 2018, the enterprises were declared bankrupt. His property was bought by an entrepreneur from Kaliningrad, Viktor Malkov, for only 4.6 million rubles. Kaa write in the media, he bought 64 hectares of vineyards, winery shops, equipment, transport, warehouses, etc. That is, in fact, all production facilities. The enterprise was revived, now Anatoly Patrash works as its chief winemaker , and Christian Ebener , who participated in the first opening of the enterprise in the early 2000s , again became a consultant .



Now the company says that in the "updated" Chateau le Grand Vostock two lines of wines have been launched. Table varieties: Chardonnay, Sauvignon Blanc, Aligote, Cabernet Sauvignon and Merlot.

And, probably, the premium brands of RESERVA wines:

• Chateau le Grand Vostock Le Chêne Royal Reserva

• Chateau le Grand Vostock Cuvée Karsov Reserva

• Chateau le Grand Vostock Krasnostop Reserva

It should be noted here that, apparently, the new owner of Chateau le Grand Vostock did not invest any huge amount of money in the revival of the enterprise. And this is the right strategy. The wine business in Russia is extremely risky - not only because of the climate, but also due to the whims of consumer demand.

In addition, it is difficult for "Russian winemakers" to compete with foreign ones in pricing. Without going into details, it is known that in Russia a bottle of wine made from natural raw materials cannot cost less than 300 rubles! In Europe, this wine can cost 1 euro! It's another matter that cheap wines are not imported to Russia, and you won't earn much on them.

In the Kuban region there are many examples when it was the strategic miscalculations of entrepreneurs that prevented the development of a winery. Myskhako has sunk into oblivion, Syk-Dere is in an incomprehensible position, the Ochakovo winery has disappeared. The problems are not in the quality of the fault, but in the organization of the business.
https://zen.yandex.ru/media/kuban/shato-le-grand-vostok-vernulos-na-kuban-5f7eaac115099c198afb2872

So, this year my friends could not go on vacation to Europe because of the quarantine. Instead, they arranged a tour of the wineries of the Krasnodar territory. And here are some photos they brought:





If you believe their words (and they often go to Europe), they could not distinguish these places from the South of France or from Italy.

I would have figured that milk production was way higher. 90% of the new Agri business I've seen in sdelanounas was about dairy facilities and dairy farms.

Russian wheat jumped on the corn of the world market
14 December 2020

As Russia plans to tighten grain exports, wheat prices are rising worldwide, foreign media report.

“Against the backdrop of clearly rising prices for bread and other food products on the Russian domestic market, President Putin has called on the authorities to take action with immediate consequences for the market. It is likely that export duties will still be introduced, followed by an increase in wheat prices, ”writes Dr. Olaf Zinke on the German agro- portal Agrarheute in his article .

“Russian Prime Minister Mikhail Mishustin announced on Thursday December 10 that Russia is preparing measures to stabilize domestic food prices. A day earlier, President Vladimir Putin criticized officials and market participants for the rise in prices for bread, flour, sugar and sunflower oil.

Grain traders have reacted to the criticism with concern, as Russia is the world's largest exporter of wheat in euros and the influence of Russians on world wheat prices and supplies is enormous.

In the US and Europe, wheat futures prices jumped immediately on December 10, although the USDA in its monthly report revised the global harvest upward. However, consumption and exports grew even more.

“We must take concrete measures to keep the prices of products important to people acceptable,” Mishustin said, Reuters reported. The prime minister called the dynamics of prices in the domestic market of Russia unacceptable, especially against the background of falling incomes.

Russians' incomes continued to decline in the third quarter, showing the sharpest drop in 20 years in the previous quarter, due to the crisis due to the COVID-19 pandemic.

Russia has harvested the second largest wheat crop to date this year, but domestic prices have skyrocketed due to very high exports and high export prices. Last week, the Russian Ministry of Agriculture proposed to introduce a grain export quota of 17.5 million tons from February 15 to June 30, although earlier this quota was only 15 million.

The Russian government has not yet approved this proposal. However, many demand an export duty on Russian wheat in addition to or instead of a quota. Mishustin did not specify what actions the government intends to take and plans to hold another meeting on this matter.

However, the prime minister said that the wheat measures will be taken from January in addition to the already existing increase in export duties on sunflower and rapeseed seeds.

“There will be market regulation, but it will be determined by market methods,” said Kremlin spokesman Dmitry Peskov.

Reuters news agency also confirmed a sharp rise in wheat prices last Friday - the day after the USDA cut its supply forecast and information that Russia is considering imposing an export duty on wheat and an export quota on grain to help stabilize domestic price increases. for food.

“Global wheat stocks in this report were five million tonnes below trade expectations, US stocks fell and there is news that Russia wants to impose quotas and export duties,” commented Craig Turner, senior agricultural broker Daniels Trading.

Russian officials are considering imposing a wheat export duty between February 15 and June 30, four sources familiar with the discussions told Reuters on Friday.

Sources said that the tax could be set at about 2,000 rubles per ton, and the Russian government plans to introduce temporary quotas on foreign supplies of wheat, rye, barley and corn.

(Sources: www.agrarheute.com; Reuters).

https://yandex.ru/turbo/agroxxi.ru/s/mirovye-agronovosti/rossiiskaja-pshenica-skaknula-na-mozol-mirovogo-rynka.html?promo=navbar&utm_referrer=https%3A%2F%2Fzen.yandex.com

While in other countries with falling currencies like Brazil food prices are raising massively and supposedly "conservative" politicians like Bolsonaro are boasting about the growth in export revenues while the population faces the consequences, Russian also "conservative" government is calling out the unacceptability of the situation and going to set up export quotas. It just shows the differences between patriotic elites and sock puppets, no matter if they pretend being nationalistic and no matter if MSM claims they are all part of an "authoritarian international". The defence of the country means first and foremost defending its population and that sets a clear line that allows to distinguish shills like Bolsonaro from statesmen like Putin.

kvs wrote:

miketheterrible wrote:I would have figured that milk production was way higher. 90% of the new Agri business I've seen in sdelanounas was about dairy facilities and dairy farms.

It is harder to grow milk production than beef production.   This includes more cost for hardware and farm workers.

In the US they have the opposite problem - excess milk production. the government has to support milk prices and still diary farmers barely make a living.

Russia's milk production will grow by 3.5%:


This year, the production of raw milk will increase by 800 thousand tons, or approximately 3.5%. Such a forecast was announced by the General Director of the National Union of Milk Producers during the XX conference of Agroinvestor, Agroholdings of Russia.(" Soyuzmoloko») Artem Belov. At the beginning of the year, the growth forecast was higher, but due to the weather situation in a number of regions there was a decrease in volumes, he said.

“The risks and fears that were regarding the development of the sector at the beginning of the year due to the pandemic were not fully realized, the situation developed according to a much more favorable scenario than we expected,” Belov said. In particular, there were serious concerns about the fall in consumer demand, but it not only did not decrease, but even increased in a number of categories, he noted. According to Belov, this is due to a number of factors. The first is financial support of socially unprotected layers of the population from the state. The allocated money was also spent on food. Also, due to the closure of the borders, residents of Russia did not go on vacation abroad and at that time spent money on food inside the country. In addition, due to the self-isolation regime, the consumption habits of the population have changed.

However, next year these factors will no longer have such a positive effect, Belov noted. “Demand may sink as price scissors increase,” he warned. "This year, the cost of milk production may grow by 15%, while the average price increase for dairy products is 3.8%, since this is a social category." There is also a risk of a decrease in production profitability due to a decrease in state support and an increase in administrative pressure on the industry - the introduction of a product traceability system, environmental initiatives, etc., which, according to Belov, "will cost business dearly."

“The next year will be difficult for the industry, the risks that did not materialize in 2020 will catch up with us, and we must be prepared for this,” he said. Nevertheless, according to the forecast of the union, next year the industry will maintain positive dynamics: production may increase by 700-750 thousand tons, exports will add 200 thousand tons in terms of milk, imports will decrease by 5-7%.

https://www.agroinvestor.ru/markets/news/34966-proizvodstvo-moloka-vyrastet-na-3-5/

Agricultural machines produced in Russia 30 percent more than last year

According to Rosspetsmash, tractors, combines, seeders and other goods were bought on the domestic market for 121.3 billion rubles (46 percent more than last year), and on the foreign market - for 13.8 billion (plus 14 percent). But what pace the machine builders will take next year is still unclear: the price of metal has risen sharply, depending on the type - by 25 - 35 percent. How much will the price of finished products rise?

Meanwhile, experts say that since 2013 the production of Russian agricultural machinery has been constantly growing, its technical characteristics are improving, and the range is increasing. This year, for example, 27 percent more (up to 4.13 thousand) were assembled agricultural tractors, 24 percent (up to 5.2 thousand) - grain harvesters, 24 percent (up to 641) - forage harvesters, 19 percent ( up to 4.75 thousand) - harrows, by 18 percent (up to 5.17 thousand) - seeders, by 17 percent (up to 339) - self-propelled mowers, by 16 percent (up to 1.44 thousand) - grain cleaning machines, by 12 percent (up to 1.1 thousand) - sprayers. The comparison is made with the last year.

Rosspetsmash has repeatedly noted that a huge support from the state comes under the decree 1432 on subsidies to manufacturers of agricultural machinery. It allows you to sell machines and units to farmers on preferential terms. Under this program, this year alone, the state budget has allocated about 12 billion rubles.

https://zen.yandex.ru/media/rosng/v-rossii-proizveli-selhozmashin-na-30-procentov-bolshe-proshlogodnego-5fe0418ac80827600f9307ff

"Will displace local meat". Germany is concerned about the development of animal husbandry in the Russian Federation

Some efficient and effective decisions and initiatives of the Ministry of Agriculture of the Russian Federation in the livestock industry almost caused panic in Germany. The issue of extreme concern in Germany was raised by the specialized edition Top Agrar.

Priority is the development of animal husbandry

It would seem that the absolutely harmless "maneuvers" of the Russian government in the agricultural sector, and, in particular, in animal husbandry, have spoiled the moods and expectations of both ordinary German citizens and entrepreneurs and industrialists. The ordinary inhabitants of Western Europe and the business class engaged in pork production have already seen imminent problems in the near future.

As it turned out, the inhabitants of Germany were frightened by the fact that in the past few years the Russian government, due to sanctions and in general, as part of the struggle for survival in the difficult conditions of the global recession, has constantly paid attention to the development of the agricultural sector of the state. And the results were not long in coming. According to open statistics, only the number of pigs raised in five years has grown by more than a million heads.

The publication of these innocuous statistics on the well-deserved fruits of the activities of Russian livestock breeders has led to serious concern among representatives of medium and large business from Germany. Based on practical experience, they have something to fear.

Dangerous success

The achievements of domestic livestock breeders described above frightened pragmatic Germans not so much with the real danger posed by Russian livestock breeders, but with the potential damage that the development of Russian agriculture could harm Western industrial businesses.

Thus, pork imports in Russia dropped to almost zero. This event was recorded for the first time in several decades of accounting statistics. The increased production of pork after meeting domestic demand caused a significant increase in exports of this type of product.

And although Russian pork and semi-finished products from it are now mainly supplied in large consignments to Asia, in particular to China, pragmatic Germans are already afraid that if products from the Russian Federation come to the European market, then it will definitely replace local livestock farms, local meat, killing local producers.

In response to such "deplorable" news , the German business community demanded that the government adopt a preventive program to protect their agricultural producers from the "offensive of Russian pork."

https://finobzor.ru/101750-vytesnit-mestnoe-myaso-v-germanii-obespokoeny-razvitiem-zhivotnovodstva-rf.html?utm_referrer=https%3A%2F%2Fzen.yandex.com

kvs wrote:Of course.  It is fine for Russia to import western produce but it is a "threat" when Russian produce tries to compete on their
precious "free" markets.

The west is not just full of shit, it is composed of it.

In other words, lobbyists in Germany are trying to prevent Russian products to enter German market. When yes, as you said, they were OK with sending such shit to Russia.

Russian businessmen are real winners. Russians themselves are real winners.

Russia should just then state they are interested in preventing German products from entering Russian market. Just watch as Germans squeal like the fat, stupid, and incoherent retards they are.

Kiko wrote:"Will displace local meat". Germany is concerned about the development of animal husbandry in the Russian Federation

Some efficient and effective decisions and initiatives of the Ministry of Agriculture of the Russian Federation in the livestock industry almost caused panic in Germany. The issue of extreme concern in Germany was raised by the specialized edition Top Agrar....

I am waiting for that braindead vegetable Vann7 to tell us how this is a very bad thing because it's not space meat

In his usual special-ed formatting

miketheterrible wrote:

kvs wrote:Of course.  It is fine for Russia to import western produce but it is a "threat" when Russian produce tries to compete on their
precious "free" markets.

The west is not just full of shit, it is composed of it.

In other words, lobbyists in Germany are trying to prevent Russian products to enter German market.  When yes, as you said, they were OK with sending such shit to Russia.

Russian businessmen are real winners.  Russians themselves are real winners.

Russia should just then state they are interested in preventing German products from entering Russian market.  Just watch as Germans squeal like the fat, stupid, and incoherent retards they are.

Don´t equate oligarchs and their politicans with normal german taxpayers. Or are you a fat, liberal, BLM-feet kissing liberal because "your" PM is one?

Coronavirus helped new agricultural records in Russia
January 3, 2021 10:10 am

The food supply system and agriculture received special significance for Russia in 2020 - many remember, for example, the food hype. How did the coronavirus crisis help the new successes of the Russian agro-industrial complex, what role did government support play in these successes, and what problems in the country's food supply did this year reveal?

According to the results of 11 months of the year, the volume of production of Russian agricultural products amounted, according to Rosstat, to almost 5.7 trillion rubles, which is 1.5% more than in the same period a year earlier. The most significant growth was achieved in the grain segment: in 2020, the second largest crop in the post-Soviet period was harvested in Russia - 132.9 million tons. In comparison with the previous year, the grain harvest increased by almost 10%, and until the repetition of the 2017 record (135.5 million tons) was not enough.

Anti-crisis seedlings

The export of Russian foodstuffs also showed steady growth. Back in early December, Agriculture Minister Dmitry Patrushev said that the annual export plan - $ 25 billion - had already been significantly exceeded, and by the end of the year its volume could exceed $ 28 billion. Both the good grain harvest and the devaluation of the ruble contributed to the intensification of food export.

The number of Russian manufacturers that have managed to enter the world market has grown, notes Elizaveta Naumova, foreign economic advisor at the Ladesol-Tambov biotechnological plant. According to her, this was due to the difficulties faced by the EU agro-industrial complex: for example, consumers in the EU were almost left without fresh vegetables on store shelves, which opened up new opportunities for Russian farmers. The export of pig products from the Russian Federation has almost doubled in the first half of the year.

The potential of Russian agriculture deserves more and more recognition in the world. In March, when food supply chains around the world collapsed during the quarantine period, the New York Times published an article in which it was named this industry as the locomotive that could save Russia from global turmoil. It was noted that thanks to the sanctions wars on the food market, Russia began to actively develop its agro-industrial complex, which allowed it to feed not only itself, but also other countries.

In addition, the American edition reminds the financial analyst of the TradingView, Inc. Igor Kuchma, predicted the future of the Russian agro-industrial complex in the context of global warming. For example, in the Far East, this may turn previously non-irrigated land into plantations of soybeans, corn and wheat, which will allow Russian producers to establish themselves among the main food producers in the world.

“In case of success and correct development, the country will receive additional income,” notes Kuchma. - And given the continued growth of the world population, the demand for food will increase. Against this background, it is not at all surprising that the shares of the three main Russian agribusiness companies - Rusagro, PJSC Cherkizovo Group and PJSC Russian Aquaculture - have grown since the beginning of the year. Moreover, in October, Prime Minister Mikhail Mishustin confirmed that the state will continue to support the industry. "

Today, subsidies for the agro-industrial complex ultimately lead to an increase in the volume of private and public investment in the industry. Moreover, the processing industry is becoming the main direction of investment activity, Elizaveta Naumova believes. According to her, vast territories, the availability of a raw material base, preferential support measures, the availability of a technological base and stable sales markets make it possible to speak of the attractiveness of the Russian agro-industrial complex for investors.

At the same time, representatives of agribusiness and related industries emphasize the need to increase government support. They cite as examples those segments of the agro-industrial complex that in Russia actually appeared out of the blue. The current attractiveness of investments in the agro-industrial complex is difficult to compare with the period of 2014-2016, when a variety of measures to support the industry were actively working, says Bogdan Grigoriev, General Director of the Rosagromarket holding, which develops the federal network of wholesale distribution centers. In his opinion, the most important of these was the 20% reimbursement of capital expenditures to investors - it was this measure that made it possible to create a large-scale greenhouse industry in Russia. “Despite all the difficulties, in just a few years Russia has finally got its own winter tomatoes and cucumbers,” the expert says.

New fronts for import substitution

However, for ordinary Russians, the fall in the ruble exchange rate also did not go unnoticed. Almost all food producers and agricultural experts say that this factor had a significant impact on the cost of food. In addition, the rise in food prices was facilitated by a decrease in yields of a number of basic crops, especially sunflower (according to preliminary data, minus 13.7% in 11 months), sugar beet, the production of which fell by 40.5%, and potatoes (it was harvested by 10, 9% less than in 11 months of last year).

A significant part of raw materials and equipment for agriculture is purchased abroad. This affects the price of the final product, explains Dmitry Matveev, president of the Kabosh group of companies, which specializes in the production of cheese and greenhouse vegetables. According to him, his agribusiness in 2020 lost 300 million rubles on the exchange rate difference:

“When we entered into a contract for the purchase of equipment abroad, the ruble exchange rate was the same, and when the payment was made, the rate had already seriously fallen. We also buy seeds abroad. Fertilizers are in Russia, but fertilizer prices are formed in dollars because they are exported. Feed additives, starter cultures for cheese production - all these are also imported products. Therefore, we are forced to raise prices for our products. But we do it very carefully. Limited consumer demand forces us to conduct a more flexible pricing policy, adapting to the real possibilities of consumers. This inevitably hurts the company's revenues, but I understand that the time is now - it is important just to survive, to keep the business. "

However, Dmitry Matveev adds, manufacturers of high-quality products have won in any case. Not least of all, this was due to the requirement in force since 2019 to indicate on the labels of natural dairy products that they are produced "without milk fat substitute." “More and more people are paying attention to the origin, product composition, shelf life. Many people care about the quality of what they buy and eat. Here the pandemic made its own adjustments, forced Russians to be more attentive to their health, ”says Matveyev.

Products that depend on the dollar exchange rate in the agro-industrial complex occupy about 25-30% - this is soybean meal, premixes, feed additives, veterinary preparations, amino acids, hatching eggs and day-old chicks for parent flocks, etc., adds Elizaveta Naumova. As a result, about a third of the types of domestic products indirectly depends on the dollar exchange rate.

Logistic challenge

One of the most memorable episodes of 2020 was the boom in demand for basic foods ahead of the spring quarantine. Many were clearly preparing for the coronavirus as a nuclear war, which led to empty shelves, sudden price increases and other imbalances in the market, says Bogdan Grigoriev. As a result, a general trend emerged - a shortage of current stocks of goods in order to smooth out imbalances in supply and demand. All this reminded of the fact that in Russia, in fact, there are still no significant accumulators of industrial products, not counting, of course, Rosrezerv warehouses.

“The warehouse capacities that retail chains have are rather of a revolving nature. They are not designed for long-term storage of certain types of products, for example, fruits and vegetables. There are practically no more serious grocery stores in the country, where food can be stored from several weeks to several months, which was the reason for what the market faced in 2020.

Russia needs a logistics infrastructure that would play the role of not only a food storage unit, but also a unified system of food distribution for both large and small market players.

In fact, only the chains completely cover their logistics needs - even large agricultural holdings sometimes do not have their own storage facilities. Business has to work on its word, especially in the chain of chilled products: fish, meat, vegetables and fruits, ”the expert says.

The same, adds Bogdan Grigoriev, applies to food exports: it is mainly large companies that can afford to make their way abroad, which are able to seriously invest in product promotion, logistics, and establishing relations with foreign buyers. Therefore, for a serious increase in exports, again, serious infrastructure is needed, like food storage facilities, which allow companies of all sizes to aggregate products at one point, from where they will be sent abroad by trucks, refrigerated containers or trains.

“Agrarian export is just beginning to play a significant role in filling the budget, and this is mainly happening in the grain segment,” Grigoriev sums up. “If Russia really wants to become a serious player in the world food market not only in the grain segment, state support for exports needs only to be increased.”

For the sake of creating favorable conditions for agricultural exports, federal projects until 2024 provide for an increase in the throughput of transport highways, the construction of six new export-oriented wholesale distribution centers (ORCs), the construction of grain and oil terminals, recalls Elizaveta Naumova. Accelerated deliveries of agricultural products to China by rail will also be organized, customs procedures for agricultural exporters will be simplified, and other measures will be taken to eliminate trade, tariff and administrative barriers.

Text: Mikhail Kuvyrko

https://m.vz.ru/economy/2021/1/3/1077579.html