Russian Agriculture News

In total, on November 29, 2022, according to the Ministry of Agriculture of the Russian Federation, 155 500 thousand tons of cereals and legumes were harvested, including: 105 200 thousand tons of wheat, 24 500 thousand tons of barley, 10 200 thousand tons of corn for grain.

As of November 29, the grain harvest was harvested from 97% of the area, 155.5 million tons were harvested. Corn and sunflower harvesting continues in some regions of Central Russia and the Volga region.
As of November 24, 155 million tons of grain (in bunker weight) were collected. On the same date last year, 125.5 million were collected. Grain and leguminous crops were threshed from 45.8 million hectares (from 45.3 million hectares last year), the yield was 33.8 c/ha (27.7 c/ha).
Wheat was harvested from 29.2 million hectares (27.8 million hectares) with a yield of 36 kg/ha (28.2 kg/ha), 105.2 million tons were harvested (78.6 last year).
Barley was threshed from 7.9 million hectares (7.9 million hectares), 24.5 million tons (18.9 million tons) were harvested with a yield of 30.9 c/ha (24 c/ha).
Corn for grain was harvested from 1.7 million hectares (2.7 million hectares), 10.2 million tons (15.2 million tons) were harvested, the yield was 59.3 c/ha (in 2021 - 55.2 c/ha).
The area of rice harvesting decreased to 165.9 thousand hectares from 184.5 thousand hectares last year, 934.2 thousand tons (1.2 million tons) were harvested with a yield of 56.3 c/ha (63.7 c/ha).
Sunflower was harvested from 7.3 million hectares (9.6 million hectares), 13.3 million tons (15.4 million tons) were harvested with a yield of 18.1 c/ha (16.1 c/ha).
6 million tons of soybeans were harvested – almost a quarter more than last year's level.

In total, as of December 7, 2022, according to the Ministry of Agriculture of the Russian Federation, 157,700 thousand tons of cereals and legumes were harvested, including: 105,300 thousand tons of wheat, 24,500 thousand tons of barley, 11,300 thousand tons of corn for grain.

Russian grain sets a historical record, by Olga Samofalova for VZGLYAD. 12.15.2022.

Russian grain goes to a historical record.

Russia has collected a record harvest of grains, including wheat, in the entire modern history. This means that Russia will be able to feed not only itself, but also African, Middle Eastern and Latin American countries that have already increased purchases of Russian wheat. How did Russia manage to achieve such an impressive result and what can prevent it from making money on it?

By December 14, Russia had collected a record grain harvest - 159 million tons in bunker weight, in net - 150 million tons, as announced by the Minister of Agriculture of the Russian Federation Dmitry Patrushev at the government hour in the State Duma of the Russian Federation.

This is a new record. The harvest has already grown by a third compared to last year, when 120.65 million tons of grain were harvested. The difference is as much as 30 million tons. Wheat was also threshed to a new record - 105.3 million tons, which is almost 30 million more than in 2021, when about 76 million tons of wheat were harvested.

Barley was harvested 24.5 million tons, corn - 11.3 million tons, rice - 944.7 thousand tons. This is better than all previous forecasts. Thus, earlier the Ministry of Agriculture expected an increase in the grain harvest in Russia in 2022 to 130 million tons, including a record 87 million tons of wheat in the entire history of Russia. Reality exceeded expectations.

"This year's figure will be a record for the last 20 years in Russia. The previous record was set in 2017, when the total grain harvest amounted to 135.5 million tons, and the wheat harvest - 86 million tons,” said Artem Deev, head of the analytical department at AMarkets.

Of course, agriculture is an industry that is highly dependent on the weather, which a person cannot fully influence. There are years when yields are reduced due to rain or heat, and there are years when stable favorable weather allows you to grow a large crop with minimal losses, Deev notes. However, the matter, of course, is not only in the favorable climatic conditions of this year.

“The entire agricultural sector in our country has been developing for more than a year. The yield is affected by the use of new agricultural techniques, improved grain sources with high productivity, i.e. seeds, the use of fertilizers and pesticides to control pests, reducing losses during harvesting, and this is a matter of using technical means - more modern combines, etc.” Deev says.

The higher technological level of large agricultural producers helped, as well as the availability of seeds, fertilizers, chemicals, fuel, etc., which turned out to be more affordable this agricultural season, including due to the partial abandonment of them by European countries this spring, notes Ibragim Ramazanov , professor of the basic department of trade policy of the Russian University of Economics. Plekhanov.

In addition, the area under crops is gradually increasing in Russia, and the state stimulates the production of agricultural products through subsidies, grants and other types of support for business in agriculture, adds Deev.

“A record harvest in 2022 can ensure Russia not only maintains its leading position in the export of grain, oilseeds, sugar and other raw materials and foodstuffs, but can also eliminate the global famine organized by the collective West to blame Russia for this,” Ramazanov says. 

For the world market, wheat exports are of particular interest, which this year has already exceeded last year's volumes. “Russia has the potential to significantly increase wheat exports without prejudice to meeting the needs of the national market,” Ramazanov is sure.

From the beginning of the agricultural season to November, Russia exported 19.8 million tons of wheat, which is already 1.4 million tons more than in the previous year (data from Rusagrotrans). In December, Russia can export another 4.4 million tons, SovEcon analysts predict. The last time such high rates were in December 2020. Exports manage to increase even more due to active sales to Algeria, Pakistan and Egypt. As a result, for the first half of the season (starts in July), wheat exports will amount to 22.8 million tons, and according to the results of the entire season - 43.9 million tons, SovEcon analysts predict.

The export opportunities of wheat producers depend not only on the harvest, but also on logistical capabilities, on export duties, on the level of prices on the world market, and - this is the new reality - on the sanctions policy of the West.

“It is no secret that the main consumers of Russian grain are the countries of Africa and Asia, which only increase purchases from year to year. For grain export, new terminals have been built in the ports of the Russian south, railway sidings, etc.,” says Deev. Although market participants talk about the lack of wagons for grain transportation.

With the help of export duties, the state limits the sale of grain abroad so that there is no shortage within Russia. “However, with such a high harvest, duties on grain sales will probably be reduced next year, and this will allow domestic companies to increase exports and make good money. From which, of course, the budget of our country will also benefit, and the strategic grain reserves in the Russian Federation will be 100% filled,” Deev believes.

It is extremely important to have large stocks of grain, and not only for the production of bread, flour and other products. “This is also necessary to prevent the rise in prices for essential products, as well as to maintain the required amount of grain in other areas of the agro-industrial complex - in the production of meat, milk, eggs. After all, grain is the main product for feeding animals and poultry, for the production of animal feed and additives,” says Deev.

There are no problems with the demand for grain, as this is a highly demanded product. Moreover, there is not much wheat in the world. Russia and Australia are the main suppliers.

However, dumping huge volumes on the world market can be a dangerous collapse in prices. Farmers would not want to face a situation where they sell much more in tons, but earn not much more in money.

Now wheat prices continue to fall on world exchanges, which causes concern for market participants. This is due, among other things, to the revival of rivalry with Ukrainian grain after the extension of the “grain deal”. On the other hand, there are sell-offs on hedge fund exchanges. 

As for sanctions, the West did not impose direct restrictions on Russian grain, so as not to lose face in front of the world community and poor countries, which would immediately face an increase in the level of hunger.

“Wheat is not formally subject to Western sanctions, but the sanctions have an indirect impact on supply chains, the provision of insurance services, etc. Imports of Russian grain by European countries, as a rule, were used for resale in the form of raw materials and processed products to other countries. Therefore, the dependence of Russian grain exports on European countries is low. Russia will be able to overcome barriers to grain exports to the world market. To do this, it is necessary to find strategic partners in those regions that are the final recipients of Russian food. Plus, it is necessary to create new logistics chains that are more reliable and independent of Western countries,” Ramazanov concludes.

Russia, in addition to the traditional markets of Egypt, Pakistan and Algeria, is already actively increasing wheat exports to the countries of the Middle East and Latin America. These are Saudi Arabia, Brazil and Mexico. Moscow even resumed deliveries to Iraq after 10 years of inactivity. The growing export of this season proves that Russian exporters have learned to bypass restrictions and barriers (financial, insurance).

https://vz.ru/economy/2022/12/15/1191036.html

Soviet Union is not any reference for agricultural production, except for naked numbers. Whole system was utterly mismanaged and technologically outdated. Plus, it was saddled with dogmatic ideological decision making, that only made it less efficient.
For example, average wheat yields in SU were on a level of second half of 19th century yields in developed countries.
Only thing modern Russian agricultural producers have to beat are their own average yields from last decade or so.