Russian Agriculture News

Sanctions Clapback: Russian Grain Exports to Brazil Hit Historic High, by Ilya Tsukanov for Sputnikglobe.com. 09.02.2023.

Russia has been slapped with nearly 15,000 sanctions by the US and its allies over the past year-and-a-half, with restrictions targeting Russian energy, food and fertilizer exports, as well as imports of high technology products and various finished goods. Moscow has reacted by reorienting trade toward countries in the Global South.

Russia, for the first time ever, has become one of the top five sources of grain for Brazil.

That’s according to a Russian media analysis released Saturday based on data from the Brazilian Institute of Geography and Statistics, Brazil’s official statistical agency.
Figures show that between January and July 2023, Brazil imported 380,000 tons of wheat and meslin (a rye/wheat mixture) from Russia worth roughly $108.5 million.

The purchases were enough to put Russia on the map as the fourth-largest source of grain for Brazil overall, behind only Argentina (about 2 million tons worth $736.3 million), Paraguay (886,000 tons worth $290 million), and Uruguay (544,000 tons for $211 million). The United States rounded out the top five, selling roughly 80,000 tons of grain, worth $20.85 million, to its Western Hemisphere neighbor.

Brazil turned to non-Mercosur Southern Common Market members for its wheat needs last year following Argentina’s unprecedented crop failures, which curtailed production and compromised exports, which ordinarily reach as much as 6 million tons per year.

As the second-largest beef producer in the world, Brazil is heavily dependent on grain imports, for both bread and feed grain, with consumption reaching as much as 12 million tons per year, short of the estimated 9-9.5 million tons the country is able to produce domestically. In the 2022/2023 crop season, major Brazilian grain producer Parana suffered major losses due to rain, further increasing the need for imports.

US-led Efforts to Smother Russian Trade Fail.

The United States and its allies have led a global effort aimed at suffocating Russian exports, including grain and fertilizers, with the restrictions serving as one of the reasons Russia moved to suspend its participation in the Black Sea Grain Deal in July (the other being that the vast majority of Ukrainian grain sold through the deal was going to wealthy Western nations, not needy countries in the Global South). Last month, US Secretary of State Antony Blinken emphasized that “Brazil’s voice” would be “critical” to convincing Russia to return to the Grain Deal.

The ramping up of Russian grain exports to Brazil echoes Russian successes in reorienting other exports over the past year, with Moscow selling tens of billions of dollars’ worth of oil and gas to India and China, turning into Delhi’s biggest oil supplier overnight. At the same time, restrictions on imports of Western finished goods have led Russia to reorient toward Asia, find alternative sources of supply using so-called parallel imports, and, where possible, to create new domestic manufacturing capabilities. At the same time, Western dependence on Russian resources like natural gas and uranium remains high, with a new report this week concluding that the European Union’s purchases of Russian LNG have jumped nearly 40 percent, accounting for some 52 percent of Russia’s total exports between January and July 2023.

Along with reducing dependence on Western markets in favor of the Global South, Russia has sought to ensure that transactions take place in alternative payments systems, including local currencies.

https://sputnikglobe.com/20230902/sanctions-clapback-russian-grain-exports-to-brazil-hit-historic-high-1113075263.html

US Imports of Russian Fertilizer Hit Record $944Mln, 09.17.2023.

The previous record of Russian fertilizers imported by the US was reached last year, with the total value of purchases over seven months totaling $900Mln.

The United States achieved a new record by buying $944Mln of Russian fertilizers between January and July, according to data from the US statistical service.

Purchases in July fell three times as much as in June and nearly 40% year-on-year to $54.4Mln - the lowest level since August 2021.

Russia was the US' second-largest supplier of fertilizer this year, the largest supplier being Canada, which exported $2.8Bln of fertilizers in seven months. Saudi Arabia, Israel, and Qatar make up the other top five countries from which the US imports fertilizer.

From January to July, the US reduced its fertilizer imports by 22%, totaling $6Bln. Exporting to this category also declined by 36%, reaching $3.4Bln during the same period.

https://sputnikglobe.com/20230917/us-imports-of-russian-fertilizer-hit-record-944mln-1113427317.html

Record Russian wheat harvest sends world prices tumbling to their lowest levels in 3 years, 09.17.2023.

A record harvest of Russian wheat for the second year in a row caused world prices to fall to their lowest levels in almost three years, writes 'Bloomberg'. According to the article, thus Russia strengthens its position as the world's leading exporter and its dominance in the global market.

Shipments are reaching record levels, as Russian merchants "gradually overcome the financial and logistical difficulties" that some of them faced after the start of the special operation in Ukraine, the publication notes.

Meanwhile, Russia's "overflowing grain depots" turned out to be a "windfall" for wheat consumers hit by the cost of living crisis, according to Bloomberg. The author of the article highlights that the record supplies caused prices to fall to their lowest levels in almost three years.

"Russian wheat does not have many competitors. At the moment, the price is determined by Russia," Helene Duflo, a cereal market analyst at Strategie Grains, tells Bloomberg.

The US Department of Agriculture raised its forecast for Russian exports while lowering its forecast for global supplies, once again underlining Moscow's "dominant position in the wheat market," the outlet recalls.

Russia currently supplies $28 billion worth of agro-industrial products abroad, which is almost 25% more than in the same period of 2022, the country's Agriculture Minister Dmitry Patrushev said at the beginning of September.
For example, Egypt became a key importer of Russian wheat in the first two months of the 2023-2024 agricultural year (it began last July 1). Turkey occupies the second place with 1,085 million tons imported from Russia in July-August, 3.5% more than in the same period of the previous year. Algeria is followed by Algeria with 790,000 tons of wheat and an almost 8.9 times increase in the volume of supplies in annual terms.

While Bangladesh and Saudi Arabia came in fourth and fifth place, with 651,000 and 648,000 tons, respectively.

Regarding cereal supplies in general, which in addition to wheat, include corn and barley, the import leadership belongs to Saudi Arabia: 1,323 million tons (87.8% increase year-on-year), while Egypt occupies the second position with 1,284 million tons of grain (12.1% more). In third place is Turkey with 1,283 million tons (a decrease of 6.7% compared to the previous year).

Yandex Translate from Spanish

https://sputniknews.lat/20230917/la-cosecha-record-de-trigo-ruso-hace-caer-los-precios-mundiales-a-sus-niveles-mas-bajos-en-3-anos-1143809876.html

Financial difficulties

Yeah, like where the hell do I put all the money??? 

It's so nice of the West to pay for Russia's SMO

If the west and Kiev keeps escalating things I would say Russia should threaten to destroy Ukrainian agriculture production and transport.

Burn fields, blow up storage sites and destroy trucks going to farms and coming from farms.

I suspect their main means of moving people and vehicle and weapons and ammo and fuel to the front line is disguised as grain transport.

And even if it isn't then it cuts their legitimate income... but of course the reason Kiev and the US are bitter about the grain corridor is because those farms are owned by western companies who don't make money from them when they don't produce and of course the ships and trucks heading away from Kievs ports carries grain but the empty ships headed to port to collect grain are likely filled with other things and same story for the trucks taking grain from silos on the farms where the grain is grown... they wont be arriving empty and a lot of those barns will have heavy machinery that is not farm equipment standard anywhere else in the world...

Russia could double its soybean meal exports to the world market, 10.06.2023.

MOSCOW (Sputnik) — Russia could at least double its soybean meal exports if the positive trend of increasing global demand continues, according to a report by Agroexport, the Ministry of Agriculture's agency for the promotion of agroexports.

"Russia is one of the world's largest exporters of soybean meal [it is in the Top 10] with more than 400,000 tons per year. If the positive trend of global demand growth for soybean meal continues, Russian exports could exceed 900,000 tons," the agency said.

Soy flour, a byproduct of the extraction of the oil from those seeds, is traditionally used in animal feed for its high protein content.

In 2022, Russia exported 585,900 tons of soy flour, including 189,000 tons to Germany.

Although shipments abroad decreased by 19.7% in 2022 compared to 2021, Russian exports of the product grew by 9.1% annually between 2018 and 2022.

Russia also exports soy flour to Turkey, Uzbekistan, Azerbaijan and other countries in the region.

Experts see Indonesia, the Philippines, Thailand and Vietnam in Southeast Asia, Saudi Arabia, the United Arab Emirates and Iran in the Middle East, and Algeria and South Africa on the African continent as promising markets, as well as China.

According to preliminary estimates, Russia will produce 3.9 million tons of soybean meal in the 2022/2023 season, which is an increase of almost 40% compared to 2.9 million tons in the previous season.

Yandex Translate from Spanish

https://sputniknews.lat/20231006/rusia-podria-duplicar-sus-exportaciones-de-harina-de-soja-al-mercado-mundial-1144464216.html

Two things:
1)this year production is slightly below five year average, since last year was pretty bad.
2) Russia is not big player in soy production like It is in wheat. Main players are Brazil,USA and Argentina. They control over 80% of the market.

Broski wrote:
GMO's are banned in Russia, there's a substantial niche market for non-GMO soybeans which Russia could capitalize on if they choose to.

I agree with you, but to do that a strategic marketing campaign is needed, since non-GMO soy can be sold at a premium and mainly for human consumption, due to potential higher price. As of now, there's no such approach and the price they are exporting at is a prevalent market price, which doesn't favor one over the other.

One hell of a contract

Zlatti71
@djuric_zlatko
.
1h
Russia has concluded a new “grain deal”... with China.

According to the contract, over the next 12 years we will supply 70 million tons of grain to the Celestial Empire. The transaction price is 2.5 trillion. rubles

That would make about 5% of the whole Russkie grain export.

The export of agricultural products from the Russian Federation in 2023 is almost $ 33 billion, by the end of the year it will reach more than $ 45 billion. This was stated by the head of the Ministry of Agriculture of Russia Dmitry Patrushev.

https://tass.ru/ekonomika/18920019

Gratuitous deliveries of Russian grain to Africa can begin within a month and a half, the documents are almost ready, Dmitry Patrushev, head of the Ministry of Agriculture of the Russian Federation, told reporters.

https://tass.ru/ekonomika/18932407

India mulling wheat imports from Russia – media 12.06.2023.

New Delhi is aiming to drive down domestic food prices, the New Indian Express reports.

The Indian government is considering allowing the delivery of over a million metric tons of wheat from Russia and could cut import duties by almost half, the New Indian Express reported on Tuesday.

The reduction of the import tariff, which currently stands at 40%, will be contingent on the final sowing acreage of wheat by the end of December, according to an unnamed source cited by the newspaper.

“[The] Russian wheat outlook is better and cheaper compared to other countries. India may allow importing around 1 million tons of wheat from Russia to encourage domestic supply,” the official said. 

Wheat prices on the Indian domestic market remain 25% higher than the stipulated value. Production has been impacted by unfavorable weather in the past two years, denting the country’s buffer stock. The weather could also negatively impact this year’s output.

Earlier this year, media reports emerged that New Delhi was in talks with Moscow on the potential supply of up to 9 million tons of Russian wheat at a discounted price.

https://www.rt.com/india/588595-india-import-russia-wheat/

As of November 28, more than 151 million tons of grain in bunker weight were harvested, including almost 99 million tons of wheat. Almost 98% of the area has been threshed. The gross rice harvest exceeds 1.1 million tons, which is 24% higher than last year. 1.6 million tons of buckwheat were harvested, which is one of the highest results for the country. (data from the Ministry of Agriculture of the Russian Federation, including new regions)

https://zerno.ru/node/23178

caveat emptor wrote:Two things:
1)this year production is slightly below five year average, since last year was pretty bad.

Gross soybean harvest in Russia 1990-2019



Gross soybean harvest in Russia 2023 (2022):

Soybeans were harvested from 3.5 million hectares (3.2 million hectares), 6.9 million tons (6 million tons) were harvested with a yield of 19.9 c/ha (18.9 c/ha).

In 2020 and 2021, soybean production in Russia amounted to 4.51 million tons and 5.02 million tons, respectively
The average five-year figure for the period 2018-2022 is 4.902 million tons, so 6 million tons in 2022 is definitely not "less than average", and definitely not a "bad year".
Do I need to mention that this year's harvest is also definitely not "below the five-year average"?

You should definitely clarify your data on soybean production in Russia.

Russia brings AI to farming – report, 12.14.2023.

Self-driving tractors have tilled over two million hectares of land in 2023, according to Cognitive Pilot.

The mass introduction of AI-based (artificial intelligence) autonomous tractors into the Russian agro-industrial sector has begun, TASS reported on Tuesday, citing developer Cognitive Pilot.

The company, which is producing the Cognitive Agro Pilot autonomous driving system for agricultural machinery based on AI technologies, told the outlet that the system has no analogs in the world. The developer insists that automated tillage by a self-driving truck could boost farming productivity by 25% and help preserve up to 20-40% more materials, such as fertilizer and seeds.

“Cognitive Pilot summarized results of operations for tractors equipped with the AI-based Cognitive Agro Pilot system in Russia. Smart machinery tilled more than 2.3 million hectares in total,” the company’s press service told TASS.

The report highlighted that, in total, 312 tractors equipped with the Cognitive Agro Pilot have been operating on Russian farms from March to November. Using the system has helped farmers save, on average, 2.6 million rubles ($28,700) per field with an area of 1,000 hectares, or more than 5 billion rubles ($56 million) in total.

According to the developer, this is the first case of large-scale commercial use of AI in Russia for tractors.“We have received a very strong result. Actually, our smart machinery has worked for slightly more than a third of the season, and the results confirm the high potential and prospects of using our robotic tractors,” said Cognitive Pilot CEO Olga Uskova.

In November 2019, Russia’s state-run lender Sber (formerly Sberbank) and Cognitive Technologies agreed to create Cognitive Pilot, a company specializing in developing uncrewed technologies in transport, agriculture, computer vision, and AI. Under the terms of the deal, Sberbank has a 30% stake in the company, while 70% of the shares belong to the founders and management of Cognitive Technologies.

Since 2022, Cognitive Pilot has been included in the list of strategically important enterprises of the Russian economy. In addition to Russia, the company’s products are reportedly being used in 12 other countries.

https://www.rt.com/business/588977-russia-artificial-intelligence-farming/

The gross harvest of grain and leguminous crops in Russia amounted to 142.6 million tons in net weight. This is reported in Rosstat materials., 12.25.2023.

Including 92.8 million tons of wheat harvested in 2023.

In 2022 alone, more grain was harvested - 157.7 million tons, including 104.2 million tons of wheat. This year's harvest ranks second.

In 2023, 14.4 million tons of corn were harvested for grain, rice - 1 million tons, buckwheat - 1.5 million tons (one of the best results in history) , sunflower for grain - 16.7 million tons, soybeans - 6.7 million tons (absolute record).

In addition, according to the statistics department, 20.5 million tons of potatoes were harvested in 2023, which is 8.6% higher than last year. 13.8 million tons of open and closed ground vegetables were collected, which is 1.2% higher than last year.

The area under agricultural crops in farms of all categories for grains and leguminous crops increased by 0.6%, to 47.808 million hectares.

https://sdelanounas.ru/blogs/156483/

Russia updated its grain export record, 12.26.2023.

Union of Exporters: Russian grain supplies since the beginning of the season have updated the historical record.

MOSCOW, December 26 – RIA Novosti. In the first half of the agricultural year (from July 1, 2023), Russia updated the record for grain exports, despite difficulties in servicing supplies, the Union of Grain Exporters reported on the Telegram channel .
"
“There are already serious results that we can talk about. Grain exports since the beginning of the season have been breaking historical records; as of mid-December it amounted to 30.8 million tons (plus 33 percent compared to the previous agricultural year), of which 23.7 million tons (plus 23 percent ) - wheat. This is an exceptional result, given the ongoing difficulties with settlements and financial support of transactions," the publication says.

The Union noted Indonesia , which last year did not import from Russia, but this year entered the top ten, having purchased 892 thousand tons of wheat since the beginning of the season.

“In Australia , the main supplier of wheat to Southeast Asia, a sharp reduction in the harvest by 15 million tons is expected, which will affect supplies abroad,” the organization recalled, pointing out that Indonesia has chosen Russia as an alternative supplier.

Moreover, Bangladesh chose Russia after India banned wheat exports in 2022. Supplies of this grain crop to the country since the beginning of the season amounted to 1.7 million tons, which is one million more than in the last agricultural year.

Most of the countries that are the largest importers of Russian wheat showed an increase in purchases compared to last season, the Union noted.

The exceptions so far have been the traditional leaders of purchases of Russian wheat: Turkey , which has purchased 3.7 million tons of grain since the beginning of the season (minus nine percent), and Egypt (2.7 million tons of grain since the beginning of the season, minus 13 percent). According to the organization, these countries were not ready for increased competitive demand for Russian grain crops, but they have a chance to increase purchase volumes in the second half of the agricultural year.

The Union added that Russian grain exporters have coped with the main challenges and restored supply logistics, making a contribution to the fight against world hunger. This made it possible to reduce and stabilize wheat prices from last season's peak of $450 to an average level of $250 per ton.

https://ria.ru/20231226/eksport-1918204481.html

Russia to begin supplying pork to China, 12.28.2023.

Beijing’s food safety watchdog previously lifted a 15-year ban on imports.

Russian pork exports to China are set to resume for the first time in 15 years, Sergey Dankvert, head of national agricultural watchdog Rosselkhoznadzor, said on Wednesday in an interview with Rossiya 24 TV.

According to the official, most of the preparations for deliveries have been completed, and the relevant departments now need to conduct final technical checks of exporters. Deliveries are expected to begin over the next few months. 

In September, China removed temporary restrictions on imports of approved Russian pork after an assessment of Russia’s system of controls for African swine fever (ASF). Beijing initially imposed the ban in 2008 after an outbreak of ASF.

Chinese customs representatives later visited Russia to evaluate pig breeding enterprises that would potentially export meat to the country as part of complex measures for lifting restrictions.

The relevant parties also completed procedures on protocols for inspection, quarantine, veterinary, and sanitary requirements, as well as a draft certificate for pork exports.

China consumes “lots of pork parts that are not so popular here [in Russia],” such as legs, stomachs, ears, and tails, Dankvert said. “Many parts that are not in demand by Russian consumers are seen as a delicacy there.”

Earlier this year, the head of Russia’s National Union of Pork Producers, Yury Kovalev, said the removal of the ban is the result of extensive work to contain ASF and create a satisfactory control system. He added that fewer and fewer countries are free of the virus, making it vital to introduce and amend import controls but refrain from sweeping bans.

China is the world’s biggest consumer of pork, accounting for half of all hog produce.

https://www.rt.com/business/589800-russia-pork-exports-china/

Time is Ripe for Dollar-Free Grain Trade Within BRICS, by Ekaterina Blinova for Sputnikglobe.com. 01.07.2024.

Expanded BRICS, a club of major developing economies, could become a platform for a self-sufficient dollar-free grain market, economists say.

BRICS – an acronym for Brazil, Russia, India, China, and South Africa – added net grain importers Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) in 2024, almost equalizing the production and consumption of key grain crops within the group.

Under these circumstances, the association may create its own trading platform and trade grain within the group without using the US dollar, reads a letter from the Russian Union of Grain Exporters (Rusgrain Union) to the Ministry of Agriculture, reviewed by Russian business newspaper Vedomosti.

According to Rusgrain Union estimates, the five BRICS countries at the end of 2023 produced a total of 1.17 billion tons of grain per year (42% of world production) and consumed 1.1 billion tons (40% of world consumption). After the expansion, the group's grain production will mount to 1.23 billion tons per year (44% of the world), and consumption will come close to production, i.e. 1.22 billion tons (also 44%).

"Statistically, it is true that 25% of the wheat trade is Russian wheat," Vladimir Petrichenko, CEO of the analytical company ProZerno, told Sputnik. "Likewise, more than 25% of the corn trade is Brazilian corn. Moreover, if we talk about soybeans, then about 58% of world trade is Brazilian soybeans. At the same time, China is the largest buyer of corn and wheat, Egypt is the largest buyer of wheat, although to a lesser extent; but they buy wheat in the same way as China there, 12 million tons per year. Now Saudi Arabia has been added, the main buyer of barley. But still, the key commodities are wheat, corn and soybeans. And for all of them, especially considering those who joined in January, this is a huge market."

BRICS countries represent a huge part, and in some cases more than half of the market for these agricultural goods, the expert pointed out. "In short, this fruit is ripe to be picked up," Petrichenko stressed.

BRICS' Grain Exchange

In the letter to the ministry, Rusgrain Union Chairman Eduard Zernin, argued that these developments create the preconditions for the formation of a BRICS "grain exchange." He believes that Russia could play "the role of a supplier of last resort," to which "other net exporters may later join."

"We have serious prerequisites for creating our own trading platform with settlements in any of the currencies of the BRICS countries, and in the future – in a special clearing currency in Russia or one of the countries with a strong financial system and a freely convertible currency other than the dollar," argued Zernin.

The government initiative to create a group grain exchange wouldn't be enough: what is also needed is the commercial participation of operators of the grain and oilseed markets, according to Petrichenko.

"The creation of an exchange is in many ways not entirely a government matter. That is, it is created by commercial operators. So there must be joint work between state and non-state operators. If we look at the Chinese Dalian exchange, its influence on pricing in the markets is insignificant, although the turnover there is very large," the expert explained, expressing optimism over the endeavour's prospects.

Having abandoned the US dollar, the group would need to pick a proper clearing currency, the expert continued.
"Another key point is the clearing part. That is, what the clearing center will be like, where it will be, and most importantly, in what currency the settlements will be made," Petrichenko said.

Will West Throw Sand in BRICS' Gears?

Per Petrichenko, there will be very strong resistance to this process from the countries designated by Russia as "unfriendly" in the wake of the sanctions spree over Moscow's special military operation in Ukraine. Major Western countries and their satellites have tried to paralyze Russia's energy and grain trade in a bid to make the nation's economy scream. However, this trick has not worked.

"[Russia] has already considerably displaced the US and EU in the wheat market," the expert noted. "Brazil has greatly pushed the US in the corn market. At least now Brazil exports more corn than the United States. And in the soybean market, Brazil has long been number one. Therefore, there will be very strong resistance and sabotage on the part of the unfriendly outgoing exporters."

He expects that the process of a "redistribution of markets" won't be an easy one. Still, the US and the EU are likely to see their global share substantially diminished in the future, as per Petrichenko.

"Right now it appears to be hard to imagine that, given that the key operators in these markets are transnational companies that have their headquarters in the US and the EU. That is, whatever one may say, there are main players in this market – transnational companies. They represent an 'unfriendly contingent' for BRICS and especially Russia," the expert concluded.

https://sputnikglobe.com/20240107/time-is-ripe-for-dollar-free-grain-trade-within-brics-1116027452.html

Why France is afraid of Russia's “grain victory”, by Valeria Verbinina for VZGLYAD. 01.22.2024.

The head of the French Foreign Ministry is scaring the whole world: in his words, in the event of victory in Ukraine, Russia will control “30% of world grain exports.” From Paris's point of view, this entails a series of problems. What problems are we talking about and why is France itself actually to blame for its current difficulties with grain exports?

As soon as he took office, French Foreign Minister Stephane Sejournet went to Ukraine, after which he gave his first interview to the newspaper Le Parisien. The main thesis of the speech was quite expected: Ukraine can count on the support of France in the fight against Russia. At a press conference in Kiev, Sejournet was even more eloquent: “It is in Ukraine that the fundamental principles of international law, European values, as well as the security interests of the French are now being defended.”

In the interview, the following conclusion is given as the main argument for the need for assistance to Ukraine: if Russia wins in Ukraine, the former will control “30% of world grain exports,” which “will become a threat to French grain on world markets,” and in France itself will lead to financial crisis and a sharp rise in inflation.

At the same time, Sejournet assured citizens that the agreement on security guarantees for Ukraine, which is going to be concluded in February, will not lead to France having to fight. He also announced that his own age did not pose a problem in terms of work (Séjournet is only 38 years old, and he is the youngest foreign minister in the country's history), nor did the fact that he suffers from dyslexia (that is, a selective disorder of the ability to write). mastering writing and reading skills).

The most interesting thing, however, is the fact that when conversations about European values ​​and international rights end, very specific interests come to the fore, in this case grain. The fact is that France is the largest producer and exporter of grain among the EU countries. France has long and successfully maintained its position, despite fluctuations in export volumes and individual difficulties (for example, the drought of 2023).

The subtlety of the grain market is that bread has been the basic food of humanity since time immemorial. Many countries currently grow different types of grain, but few produce enough to export it. The world's largest producer is China - 122 million tons for the 2022-2023 season, but even it imports from 10 to 12 million tons of grain per year to feed the population and have the necessary reserves.

The largest exporters in this area are Russia, Canada, Australia, USA, France and Ukraine. As for France, it produces and exports soft and durum wheat, corn and barley, and includes its own “overseas departments” in export statistics, which are geographically very remote from the metropolis. Grain exports constitute a significant source of French income, since only half of what is grown is used for consumption within the country, and the rest is sold abroad.

The country employs 540 thousand people in grain production and processing, including bread production.

And when the dyslexic Foreign Minister declares that the position of French grain will be threatened, he thus sends a message to 540 thousand working citizens, firstly, that their position is vulnerable, and secondly, that the government is trying to take care of them and don't offend them. And by dropping a hint that some complications with food may arise within France if Russia “conquers” Ukraine, the minister is thus affecting the interests of all citizens, because food is something that no one can do without.

In fact, the situation with French grain is much more complicated. And the point here is not at all in Russia, but in the problems that the French managed to create for themselves. In October 2022, the French National Agency for Food and Sanitation Safety announced that from April 2023 it would ban the use of an insecticide called phosphine, which is used, among other things, to rid grain storage facilities of pests.

This decision was made in agreement with the structures of the European Union and had no consequences for grain supplies to other EU countries. The problem is that France supplies only about a third of its export products to the European Union (approximately 6.5 million tons out of almost 17 million).

However, in the countries of North Africa, exports to which constitute a significant part of French grain supplies, without documentation that phosphine treatment was carried out, they will not even be allowed to begin unloading the ship.

At the same time, Eric Thirouin, president of the association of French grain producers, said in complete frustration that these countries would not wait for famine to begin there, and would turn “to the world’s first exporter, Russia, which will begin supplying them with grain (instead of us).”

As a result, the National Agency for Food and Sanitation Safety was forced to reverse its decision and allowed grain exporters to use phosphine again. However, the time that was required for all these bureaucratic games and approvals was lost. Already in September, French carriers noted a sharp decline in interest in French grain in Algeria and Morocco. Moreover, Russian grain could be purchased cheaper.

Data presented by the French authorities show that exports to Belgium, the Netherlands, Luxembourg, Italy and other EU countries in the second half of 2023 do not undergo sharp changes, exports to Algeria zigzag, sometimes falling, sometimes taking off, and exports to Morocco collapsed catastrophically. Instead, the French tried to organize supplies to Egypt, but this country has traditionally been a market for Russian grain, and, of course, no one is interested in letting competitors take their place.

To call a spade a spade, French bureaucrats should have thought through the consequences of their actions. If they don’t like phosphine (and this is really not a harmless reagent at all), introduce some local restrictions that would not affect the important sector of French exports. Now this industry, in which everything was fine, has become problematic. Grain is produced in the same volumes - where to put it? Moreover, other manufacturers are not asleep at all, and, for example, Canada and Australia are also not going to give up their positions.

And public arguments that if Russia controls Ukrainian grain, it will pose a danger to French grain, actually hides the desire for hostilities in Ukraine to continue as long as possible. Not least because Russian grain is a direct competitor to French grain. If for some reason Russia’s share in the grain market decreases (for example, the F-16s that Ukraine will receive begin to bomb Russian ports and granaries), France will receive more favorable conditions for the sale of its products. Nothing personal, just business.

However, there are elections to the European Parliament ahead, and also a convulsive desire of the chicks of Macron’s nest to take the place of president, when Macron himself, by virtue of French laws, will no longer be able to be re-elected. You cannot tell voters that you are encouraging military action to protect economic interests. Moreover, political competitors, the National Rally of Marine Le Pen, are confidently gaining points and are close to ousting the current masters of life.

But Russia must be presented as a threat – always. Even if it’s solely a matter of local bureaucrats who banned a well-known insecticide without thinking about the consequences.

https://vz.ru/world/2024/1/22/1249699.html

Farmers have become a new threat to European authorities, by Olga Samofalova for RiaNovosti. 01.23.2024.

European farmers faced neglect from their own authorities. In such a difficult period, when diesel prices rose sharply in two years, when they were deprived of Russian fertilizers, the authorities decided to plug their financial holes at the expense of their own farmers. However, agricultural workers do not allow themselves to be offended.

The wave of farmer strikes that began last year continues in the European Union. Only now these strikes have become much larger and more effective.

Last week marked the peak of the conflict between German farmers, who managed to get the authorities to partially maintain their diesel benefits. Previously, the Polish authorities had to compromise with farmers. French farmers are also counting on success; they are also ready to fight to the end for their rights, for cheaper fuel and reduced competition with imported products.

“Before the well-known geopolitical events, agriculture in both France and Germany was in a rather privileged position compared to Russian farmers. State support, high quality of life in rural areas, favorable conditions for the provision of mineral fertilizers, modern technological equipment - all this made working on the land attractive and ensured a stable economic position for national farmers,” notes Marina Anokhina, Associate Professor of the Department of Corporate Management and Innovation at the Russian Economic University. Plekhanov. However, very quickly the situation changed dramatically. The severance of economic ties with Russia, both in the energy sector and in the field of fertilizers, has had a negative impact on European economies. Germany generally went into recession.

“Restrictions on the export of mineral fertilizers from Russia, a decrease in the availability of Russian energy sources, and the rupture of global agri-food chains have clearly demonstrated the paramount importance of Russia’s agricultural resources and the true sources of efficiency of the agricultural systems of developed countries, in particular Germany and France,” notes Anokhina.

In the context of the energy crisis, sharp inflation and rising costs, European authorities had to take tough and unpleasant measures for agricultural workers. “The governments of these countries had to take measures to save the budget, change import-export conditions not in the interests of their own farmers, to over-regulate the industry, which, of course, negatively affected the efficiency of agricultural production and “shattered” food independence,” the interlocutor says.

As for Germany, 10 thousand farmers arrived in Berlin last week on 5 thousand tractors. This was the largest protest of agricultural workers. The emotional outburst was caused by the decision of the German authorities to cancel tax breaks on diesel fuel, which had been in effect for 70 years. And they decided to cancel the benefits during the most difficult period, when the cost of diesel increased significantly over two years. After all, now, instead of cheap Russian oil and cheap petroleum products, Germany has to import more expensive oil and diesel from other producers.

Back in 2022, diesel prices in Germany rose to their highest level in 50 years. Even in previous oil crises - in 1973-1974 and in 1979-1980, as well as during the financial crisis of 2008-2009, fuel prices did not rise so significantly. Of course, diesel prices have decreased in 2023, but they are still significantly higher than they were in 2020-2021.

Why did the German authorities decide to deprive farmers of benefits that had been in effect for 70 years? It's simple: in 2023, Germany went into recession - GDP dropped by 0.5%. At the same time, a huge deficit has formed in the country’s budget, which the authorities are trying to close, including at the expense of agricultural workers.

“In Germany, the abolition of subsidies for diesel fuel and tax breaks for vehicles for farmers turned out to be the most stringent measure in comparison with other sectors of the German economy, which naturally pushed farmers to protest. With such a policy, we should expect the ruin of a large number of farms, agricultural production will decrease, which will inevitably cause a further increase in food prices and will further worsen the economic situation of the country,” says Marina Anokhina.

German farmers staged such protests that the German authorities were afraid and made concessions, although at first they insisted that they had no money. It was still not possible to completely maintain the benefits, but the authorities promised not to abolish them completely, but only to reduce them slightly.

Next, German train drivers, both passenger and freight, announced a six-day strike. It will take place from January 23-24 to January 29. Thousands of trains will be canceled due to the strike. The machinists are demanding a reduction in the working week by three hours, an increase in wages and payment of a one-time compensation of 3 thousand euros due to high inflation. Last year there were already two warning strikes that lasted 24 hours, and in early January there was a third strike for three days. This is the fourth strike this week, and it is a full-scale one. It will be difficult for the German authorities not to make concessions this time.

French farmers also started going on strike last year, in September. For France, strikes are generally quite common, but this cannot be said about Germany. But the economic problems of the eurozone's largest economy, which have been observed over the past two years, quite logically began to result in social discontent in Germany.

As for French farmers, on Monday they again blocked highways and erected barricades in protest. The strike began last week on January 18, and farmers intend to continue it “throughout this week, and for as long as necessary.”

Farmers are demanding recognition of the importance of their profession and condemning government agricultural policies that they say make them uncompetitive. In particular, they oppose the import of agricultural products, restrictions on the use of water for irrigation, increasing the cost of diesel fuel, as well as restrictive measures to protect the environment and the growing financial burden on production. The Ministry of Agriculture of the country is already ready to postpone the presentation of a new bill that regulates agriculture. The French authorities are seriously afraid that farmers may create a new social protest movement similar to the “yellow vests”.

“France is one of the largest agricultural powers.

The key problem in French agriculture is the significant increase in irrigation costs. Significant problems should be expected in winemaking, sugar production and poultry
farming due to the tightening of the tax regime, the active implementation of the principles of “green” agriculture, and the imbalance of the general EU policy,” the expert notes.

Over the past year, farmer protests have spread not only to France and Germany, but also to Poland, Romania and the Netherlands. That is, in at least five EU countries, farmers are outraged by the deterioration of their lives and earnings.

In Poland, for example, farmers blocked automobile checkpoints on the border with Ukraine from November 16 to December 23, 2023. Then they resumed strikes in early January. The Polish authorities had to agree to the strikers' demands. Firstly, the ban on Ukrainian products in Poland will remain in effect indefinitely. Secondly, the authorities refused to increase the tax rate. Thirdly, they were given preferential loans. Plus, subsidies will be provided for growing corn.

In general, European farmers manage to achieve the fulfillment of their demands, if not all, then most of them. Therefore, French farmers have a great chance of winning; the main thing is to keep their word and strike until the victory, and not give up after a couple of days.

https://vz.ru/economy/2024/1/23/1249706.html

All these subsidies and protectionist measures for farmers in Europe is very funny with them lecturing the world about market forces and free and open markets and democracy and natural selection...