Russian Agriculture News

Nice

Fedorov: Russia practically ceases to depend on the import of meat to the end of the year

KomissarBojanchev wrote:As far as I know russia is one of the world leaders in agrucltural machinery design and innovation. What is the current status of russian agricultural technology exports. Expanding this area will be crucial in diversifying the economy. Also with it's current extreme technological expertise it shouldn't be hard for russia to create a competitor to the much hated monsanto by giving more favorable buyer terms for it's products and safer genetic modifications instead of for the sake of global profit and expl,oitation the way monsanto does.

Still an issue with quality of machinery compared to western models. Well, fine for a basic tractor that will run and run for years, but not so for more specialised machinery. Relatives who farm in Krasnodar use Claas even tho the import tarifs are not good. But Claas work out okay as they are more reliable than Rostselmash which are made Rostov only about 200km away.

sepheronx wrote:Rostselmash isnt the only tractor and agriculture making company in Russia. as well, they seem to be doing well enough that they own our (Canada) bigger agriculyure machine building company and even make their products here and US as well.

They own the tractor company from my home city.

Rost have aquired Versatile through Buhler Inc. And in typical Russian move in such cases have managed to make the acquisition work out better than their own firm...

Rosselmash seem to be doing OK...


Armenia has received the first batch of 12 combine harvesters NIVA-Effect. Negotiations ongoing on the next delivery. The Russian company has been selected as the main supplier at the level of the government.

http://sdelanounas.ru/blogs/61614/

The Niva harvester
http://ru.rostselmash.com/products/grain_harvesters/NIVA

Rosselmash is making a major effort to reorganize and coordinate all the various research institutes and industrial plants in order to make the production of agricultural equipment in Russia more streamlined and competitive, and with an eye to full import substitution, to take advantage of the ruble devaluation.

The blogger, who also happens to the the leader of Russia's Business Party, Konstantin Babkin, speaks highly of the Ministry of Industry, but faults the Russian Central Bank as pursuing a "tight money" policy which makes credits more difficult to obtain. Nevertheless, Rosselmash has already had some major export successes in recent months.  

The premier of their new model harvester (2014)



More pics here: http://babkin-k.livejournal.com/240130.html

.

Very smart move!

Russia's Food Import Ban Is Here to Stay

Russia’s deputy prime minister has confirmed what Russia Insider said a week ago: the food import ban will not be lifted. This is because it is not really a sanction. It is a tool to help Russian farming.........(continued)

http://russia-insider.com/en/its-official-food-import-ban-here-stay/6304

Peanut wars

Russia to ban import of peanuts from US to Russia starting May 1
http://tass.ru/en/economy/792585


Russian agricultural watchdog suggests substituting Indian supplies for peanuts from US
http://tass.ru/en/economy/792629

Cyberspec wrote:Peanut wars  

Russia to ban import of peanuts from US to Russia starting May 1
http://tass.ru/en/economy/792585


Russian agricultural watchdog suggests substituting Indian supplies for peanuts from US
http://tass.ru/en/economy/792629

What? China producing half the world's stock and Russia imports from the US? What the ...

Pretty good advertising video of agricultural machinery manifacturer Almaz.

Instead of buying overhyped german crap Russian agricultural should've entirely replaced all of it's equopment with domestic ones. For all those saying "hurr durr russian equipment is low quality crap" I have a hard time believing this since the USSR left a legacy of extremely modern agricultural technology for it's time, hell for it's entire existence the USSR's main priority was constantly modernising agricultural production. That's why the belief that Russian farming machinery is technologically backward is 99% probability BS.

If a nation can design some of the best tanks and trucks in the world then it's then it can build an excellent grain harvester.

The only problem Russian agricultural technology has is poor stigma due to western propaganda and quality control problems due to a long lack of funding during the 90s, not the designs themselves.

Russia cancels wheat export customs duty — government’s official Twitter

MOSCOW, May 15. /TASS/. The Russian Government has canceled the wheat export customs duty, the cabinet of ministers said on Friday in its official Twitter.

"The decision was made to abolish the export customs duty for wheat," the statement said.

The Russian government imposed the wheat export duty from February 1, 2015 in order to stabilize bread and flour prices on the Russia’s domestic market in conditions of high grain export rates due to ruble devaluation. The duty equals 15% of the customs value plus 7.5 euro but at least 35 euro a tonne.

The Russian Ministry of Agriculture suggested reducing wheat export duties to zero from May 15 on May 5, with a change in its formula. The new procedure of the export duty calculation stipulates that the export fee will total 1 euro against the aforesaid domestic price level, the ministry reported. The duty will vary depending on the contracted supply price.

"It is critical for us that the grain price is profit-making for farmers. Restrictions will certainly be in place for the case of economic contingencies but they are formal by nature," Russian Minister of Agriculture Alexander Tkachev said earlier.

http://tass.ru/en/economy/794810

Food embargo will not be lifted soon — Russian Minister of Agriculture

The domestic agribusiness will significantly improve its competitiveness by the time of abolishing Russia’s response measures in the format of the food embargo against Western sanctions, minister said

MOSCOW, May 21. /TASS/. Russia’s food embargo is not expected to be lifted soon, Minister of Agriculture Alexander Tkachev said on Thursday. "I think this will hardly take place tomorrow," the minister added.

The domestic agribusiness will significantly improve its competitiveness by the time of abolishing Russia’s response measures in the format of the food embargo against Western sanctions, the minister said. "It is fine even if these are canceled in two-three years," Tkachev added.

Abolishment of grain export prices did not entail any considerable price hike on the domestic market, the minister said. "Prices grew by just 200-300 rubles ($4-6) and not across the whole territory of the country," Tkachev said. The new mechanism for calculation of the wheat export duty is called to protect the domestic market against dramatic fluctuations of the dollar rate, the minister added.

Tkachev also supports establishment of domestic food producers, particularly the food network project "Edim doma!" ("Eating at home!") "I think it has the right to life. I will support projects related to the domestic production development in every possible way as a minister," he added.

Russia May Give Agricultural Investors Land for Free

Agricultural ministry proposes to take radical steps to put millions of unusued farmland to productive use

http://russia-insider.com/en/business/russia-plans-lease-land-free-agricultural-investors/ri7675

Russian daily Vedemonsti reports that Agricultural Ministry is working on a policy proposal under which agricultural investors would be leased given currently unused farmland free of charge.

The Ministry further proposes compensation to investors for any development of the state-owned land. Addition, if the investors prove to have successfully developed the land within the five year period, they could become the new owners of the land or the state may continue to lease the land free of charge.

Without state support businesses are reluctant to invest in Russian agriculture, but the Ministry hopes to change that with these attractive proposals.

According to the 2014 figures from the Ministry of Agriculture Russia has 386,5 million hectares of agricultural land, including 196,1 million hectares of farmland. 56 million hectares, or 28.6% of all farmland is not in use for its intended purpose. Almost half of that - 21.6 million hectares- are located in Siberia.

Earlier this year a bill was passed in the Duma to distribute plots of land of up to 100 acres to Russian citizens in the Far East. This land cannot be sold and is only to be used for agriculture.

Government to Increase Subsidies for Farmers

Prime Minister Dmitry Medvedev said subsidies for the agricultural sector would increase by 2.5 billion rubles.

Mike Wheatley

http://russia-insider.com/en/business/government-increase-subsidies-farmers/ri7888

Prime Minister Dmitry Medvedev yesterday signed a decree authorizing an increase in the amount of subsidies to be granted to agricultural production to 21.342 billion rubles, the Ministry of Agriculture has said.

“The subsidies are available for the co-financing of constituent entities’ expenditure obligations, relating to the reimbursement of the interest rate on short-term loans (loans),” a spokesperson for the ministry told RIA Novosti. “According to the decree, the amount of subsidies in this area has been increased by 2.5 billion rubles.”

Agriculture Minister Alexander Tkachev said that the joint task of ministries and regional authorities is to support and provide assistance to farmers to ensure the growth of agricultural production.

“It will take another 5-7 years for Russia to reach its maximum level of crop production,” the Ministry added. “Therefore, we need to ensure that financing is made available to the agricultural sector in its entirety, and this must be done as soon as possible”.

Good move, keep it up

Western Companies Fight for Russian Agricultural Market - French Media

Despite the economic recession and Western sanctions, foreign businesses are not willing to leave Russia. On the contrary, some of them believe that now is the perfect time to do business in Russia, said correspondent for Les Echos Benjamin Quenelle.

http://sputniknews.com/business/20150619/1023570920.html

"Crisis in Russia? Yes, it's real… But at the same time it is the best time to launch new projects!" — Cedric Etlicher, a French banker, commented on the situation, as cited by Les Echos.

The Russian embargo, introduced as a retaliation measure against food imports from Europe by the Kremlin, prompted a number of French companies to seek new economic ties in Russia.

"Those who miss opportunities now will find it hard to regain their market shares after the crisis ends," said the banker, as quoted by the French newspaper.

Folks working in the Russian agricultural sector are rubbing their hands anticipating a boom in the industry. The introduction of Western sanctions prompted the Russian government to invest in its own agricultural industry.

"With the embargo and the government support, the crisis has become a catalyst for investment," said Pyotr Ilyukhin, the director of food company Prodo, as quoted by Les Echos.

At the same time, Western companies are in competition with Chinese businesses which are quick to fill available spots in the Russian food industry. This is why Western companies are trying to do everything not to lose their already-established relations with Russia, the French newspaper reported.

Local Producers in Russia to Benefit From Food Import Embargo – UN Agency

Western sanctions may benefit the Russian agricultiral industry and increase domestic agricultural output.

http://sputniknews.com/business/20150619/1023566725.html

ST. PETERSBURG (Sputnik), Alexander Mosesov — A Russian embargo on food imports from a number of Western countries may improve local agricultural output, the president of UN International Fund for Agricultural Development (IFAD) told Sputnik on Friday.

"Every political incident has its downside and its good side…. But the current situation also gives opportunities for small [Russian] producers to increase their productivity to be more effective and efficient and have access to the Russian markets, so there could be an advantage there," Kanayo Nwanze said.

He added that Russian agricultural producers need to invest in IT technologies that increase productivity to realize the country’s "huge agricultural potential."

The list of banned products includes meat, poultry, fish, seafood, milk, dairy products and fruit and vegetables.

On Thursday, the head of Russia’s agriculture Rosselkhoznadzor watchdog agency, Sergei Dankvert, said that Russian agricultural producers had called on authorities to expand the list of banned import foodstuffs if economic sanctions against Russia were extended.

Nwanze also said that Russia’s active ongoing contribution to the IFAD is vital for the UN agency.

"I must say to you I’m very exited about Russia joining IFAD. Russia became a member of IFAD only in 2014 but Russia increased its financial contribution to IFAD by 50%, it went from 6 to 9 million dollars," Nwanze said.

According to the agency president, Russia's contribution is especially important since IFAD actively works with Commonwealth of Independent States (CIS) countries.

"In 10 of these countries, we have financed 40 projects for a total of 500 million dollars," Nwanze added.

IFAD promotes financial services and financial inclusion for rural areas globally by linking farmers to markets, strengthening small and medium-sized enterprises, improving livestock productivity, and urging government agricultural departments to invest in rural infrastructure.

The economic forum in St. Petersburg, taking place June 18-20, is held under the auspices of Russian President Vladimir Putin.

EU's Wine War: Crimea Growers Urge Russia to Fire Back

The EU banned Crimean wines last year. Crimean wine growers are saying it’s time to return the favor
http://russia-insider.com/en/wine-war-being-waged-eu-bans-crimean-imports/ri8311

Something I wasn't aware of

Russia is, contrary to popular knowledge, a major wine producing country.  In 2007 it was reported to have produced around 7.3 million hl - just behind Chile and Portugal. If Russians were to be more limited to the domestic market, European wine producers would lose out to what is by far the largest market in Europe.

Interesting news:

Finnish Farmers Ask Government for Money Amid Russian Food Embargo

Finland’s Central Union of Agricultural Producers and Forest Owners (MTK) says the country’s government needs to help milk producers survive through the current crisis, caused by the Russian ban on imports from countries that have targeted Russia with sanctions.

http://sputniknews.com/europe/20150725/1025028342.html


But here is the kicker: not only did the EU seem to lose very large market but have also jump-started creation of massive competition for their (already heavily subsidized) agricultural sector, which will start to flood EU market with, in this case, milk within several years.

These are the articles I ran into about new dairy production farms opened in Russia in last 72 hours alone:  

http://sdelanounas.ru/blogs/65591/
http://sdelanounas.ru/blogs/65583/
http://sdelanounas.ru/blogs/65577/
http://sdelanounas.ru/blogs/65576/
http://sdelanounas.ru/blogs/65537/

Someone did not think their foreign policy trough it seems...

Russians fear private households may have to slaughter cattle

MOSCOW, August 13. /TASS/. The Russian government’s rumored plans for restricting livestock private households are allowed to keep in order to make this branch of the economy more civilized has sparked an amazingly emotional reaction from society. Some instantly recalled the early 1960s, when the then Soviet leader Nikita Krushchev prohibited rural residents from keeping livestock at their private households, which promptly caused food shortages. True, the government does have a point when it says that this branch of the economy should be put in order, but it is far more important to avoid causing harm, experts say.

Russian Prime Minister Dmitry Medvedev several days ago instructed all ministries and agencies concerned to look into the possibility of legal restrictions on the amount of poultry and livestock private households are allowed to have. Some governors had complained that too many heads of cattle kept by private households were causing problems to neighbors. For its part, the Agriculture Ministry has long pointed to the sanitary need for adjusting the size of livestock to the available land resources.

At Thursday’s meeting of the Cabinet Medvedev said that no livestock restrictions on private households had been made yet.

"The legislators have asked us to look into the possibility of setting some rules for private households to abide by to ensure there should be no manipulations with their status. Such instructions have been issued, but this is a very sensitive matter. There have been no decisions at this point. And I am not certain any will follow," he said.

In the meantime, the public response was very quick and emotional. Many recalled the days when during the rule of Soviet leader Nikita Krushchev in the middle of last century peasant farmers literally had tears in their eyes while giving away cows for slaughter. No mandatory reduction of livestock in private households is on the agenda this time, Deputy Prime Minister Arkady Dvorkovich was quick to declare. "It is important to identify rational instruments and ways of ensuring compliance with veterinary and tax requirements and obligations by private households," he said.

"The people who live and work in rural areas should enjoy a considerate, friendly attitude," the online media resource VZGLYAD quotes a member of the bureau of the United Russia party’s Supreme Council, Vladimir Plotnikov as saying. Before 2008 Plotnikov had led the Agrarian Party. "Private households account for 48% of cows, 46% of sheep, and 85% of potatoes."

"We’ve seen some private farmers curtail their business to change their status to private households. The reason is there are far less administrative pressures, inspections and veterinary checks. If some restrictions are established today, say five cows and no more, while some may be keeping a dozen, what is to be done to the other five? Sending them to the slaughter?"

"All this should be put onto the civilized track. There must be no time-serving stupid campaigns that had once occurred during Krushchev rule. There should be no overdoing it," Plotnikov said.

Private households-related problems do exist and they have to be addressed, but that must be done through concrete decisions locally, by improving the available legal leverage, says the director of the Agricultural and Food Policies Centre at the Russian presidential academy RANEPA, Natalya Shagaida.

"The people already feel scared. In the rural areas private households account for a large share of people’s incomes," Shagaida told TASS. "And the timing is utterly wrong - the crisis is on and the prices of foods have surged."

Also, Shagaida believes that the initial presentation of the news to the public at large was very inappropriate. "At first, everybody thought that the government wished to restrict individuals’ incomes, because these days the money people earn by selling home-grown produce is tax-exempt."

True, some problems with private households do exist. In the first place they concern creation of normal conditions for all rural residents.

"For instance, in the Stavropol territory there is a problem of relations between neighbors. Some may keep just one or two heads of cattle, while others, as many as 50. All animals graze on the same pastures. An elderly woman keeping one cow at the most is being forced from that territory. They are unable to withstand such expansion."

Also, there exists certain taxation injustice in comparison with farmers, because some households look pretty much like farms. But the owners of 50 calves are listed as private households and pay no taxes.

The expert is certain that the question of restrictions on private households should be approached from a different angle.

"Each rural community should establish its own land management rules and the density of animals depending on the size of the plot of land. That would be clear to all. If you wish to have more, go ahead, have yourself registered as a private farmer and get the land you need."

It has to be admitted, though, that on the way towards establishing private farms there are too many bureaucratic hurdles and other problems many ordinary rural residents will never be able to cope with.

"If the government is really interested in legalizing the very small share of private households with large livestock herds, then it should apply a ‘carrot policy’ first and foremost. Rules must be made simpler to let people spend more time doing daily chores on the farm, and not going to a nearby town with loads of paperwork."

http://tass.ru/en/opinions/814264