Russian Agriculture News

have broader economic consequences

He was right. 

Mishustin: Russia has harvested the largest potato crop in three decades, by Konstantin Sergeev for VZGLYAD. 09.11.2024.

In 2024, Russia set records for the potato harvest, vegetable and fruit harvest, Russian Prime Minister Mikhail Mishustin said in a video address to the Ministry of Agriculture board. The country's agricultural industry is developing steadily.

“There are new records for the harvest of vegetables and fruits in the organized sector, and for the potato harvest, which was the highest in the last thirty years,” the government website reported , citing the Chairman of the Cabinet of Ministers Mikhail Mishustin.

Also, according to the head of the Cabinet, the country is increasing the production of milk, eggs, meat, fish catch, and more food products are being produced. Mishustin attributes the results to the system of support for farmers. Thus, last year, agricultural producers attracted almost 2 trillion rubles at reduced rates, and preferential leasing is in effect. Businesses have created or modernized more than 100 agricultural facilities. New support tools are also available to small agribusinesses and owners of subsidiary farms.

Target indicators for four state programs have been achieved: development of rural areas, agro-industrial and fisheries complexes, land reclamation and the involvement of land in agricultural circulation.

The Prime Minister expects that this season farmers will harvest, sow winter crops and prepare for the spring campaign without any disruptions, and that government support will arrive on time.

“The government highly appreciates the steps taken by farmers to strengthen food security so that citizens can continue to purchase high-quality and affordable food products,” said Mikhail Mishustin.

As previously reported, Deputy Prime Minister Dmitry Patrushev held a meeting on the situation in the Russian agro-industrial complex.

https://vz.ru/news/2024/9/11/1286639.html

Vegetable harvest exceeds three million tons since the beginning of the year, 09.12.2024.

Ministry of Agriculture: Vegetable harvest exceeded three million tons since the beginning of the year.

MOSCOW, 12 Sep - RIA Novosti. Russian farmers have already exceeded the 3 million tonne mark in vegetable harvests since the beginning of the year, with growth observed both in open ground and in greenhouses compared to last year, the Ministry of Agriculture reported.

"As of September 12, since the beginning of the year, the organized sector has harvested over 2 million tons of open-ground vegetables, which is 56.9 thousand tons more than the same period last year... In addition, Russian farmers have harvested over 1.1 million tons of greenhouse products, which is 1.4% more than last year. Of these, the tomato harvest is 470 thousand tons, and cucumbers - 620 thousand tons," the report says.

The leaders in the production of ground vegetables in our country, as noted, are the Astrakhan, Volgograd and Moscow regions , Krasnodar Krai , as well as the Kabardino-Balkarian Republic and Dagestan. And traditionally the leading regions in the production of vegetables in closed ground in Russia are the Lipetsk, Moscow, Kaluga and Volgograd regions , as well as Krasnodar and Stavropol Krais , adds the press service of the Ministry of Agriculture.

On Monday, the ministry reported that Russian farmers have harvested more than 2.8 million tons of vegetables and greens since the beginning of the year.

https://ria.ru/20240912/ovoschi-1972392867.html

Mishustin announces record harvest in Russia, by Alexandra Yudina for VZGLYAD. 10.02.2024.

Prime Minister Mishustin announces record harvest in Russia.

During a meeting with the Chairman of the Board of Rosselkhozbank Boris Listov, Prime Minister Mikhail Mishustin announced record harvests in agriculture in 2024, noting the fulfillment of targets for important products.

According to him, in 2024, the targets for most important agricultural products were met, RIA Novosti reports .

"The President said at the Eastern Economic Forum that Russia has achieved significant results in agriculture. It is important that this sector has now practically shown record harvests," the Prime Minister emphasized.

Mishustin also stated that meat producers have shown good results. "Our country is now among the four largest producers, for example, of meat in the world," the head of government said.

Mishustin added that the targets for most of the main products in the sphere of domestic agriculture were met this year.

In addition, the Prime Minister emphasized the need to increase support for domestic agricultural producers, especially in terms of access to credit.

He noted that this will help strengthen Russia’s position in the global market and ensure continued growth in the agricultural sector.

Earlier, the Prime Minister reported record harvests of vegetables and fruits in Russia. In particular, as Mishustin noted, the potato harvest set a 30-year record.

https://vz.ru/news/2024/10/2/1290296.html

Russia has turned on its quietest weapon at full power, by Kirill Strelnikov for RiaNovosti. 10.11.2024.

Yesterday, at the plenary session "Russian Agro-Industrial Industry - 2030: Ways to Achieve Technological Leadership" within the framework of the 26th Russian Agro-Industrial Exhibition "Golden Autumn", Mikhail Mishustin stated that "under the conditions of unprecedented sanctions against our country, our farmers used this opportunity to the maximum" and "much of what they bought abroad ten years ago is now purchased in Russia."

In fact, the head of the Russian government is very modest.

Let us recall: in response to the economic sanctions imposed by the collective West against Russia after the return of Crimea to its native harbor, in 2014, by decree of Russian President Vladimir Putin, a food embargo was introduced - a ban on the import of certain types of agricultural products, raw materials and food from unfriendly countries into Russia.

As a result, over the past ten years our agro-industrial complex has made not just a leap: it was a fantastic breakthrough and feat.

Russia, in fact, is a northern and sparsely populated country relative to its area with a small share of land used for agriculture, but it was able to burst into the elite club of countries where conditions for agriculture are incomparably better. For example, in the same USA, agricultural lands occupy more than 50% of the entire area of ​​the country (in Russia - 12-13%) and even the northern regions (minus Alaska ) are located at the latitude of Crimea and Anapa.

However, over ten years of sanctions, production volumes in our agriculture have grown by a third, and in the food and processing industry - almost 1.5 times. Back in 2013, we imported a significant portion of meat - now, according to the head of the Ministry of Agriculture Oksana Lut , "we are completely self-sufficient in meat and have the opportunity to export this product to other countries, increasing production volumes every year." At the plenary session, Ms. Lut complained that we are lagging behind only in sheep meat, but something tells us that we will survive this, and eventually we will catch up and overtake.

The word "record" has become a bit of a cliche, but in the case of harvests, it is indispensable: for several years now, the gross grain harvest in Russia has exceeded 120 million tons. In the 2023-2024 season, the grain harvest amounted to 142.5 million tons, and at the moment, the harvest has already exceeded 120 million tons, that is, taking into account the volumes of domestic consumption of all types of grain crops in our country, food security in this area is fully ensured. In total, over the year, the production of Russian agro-industrial complex products increased by an average of 2.2% (for example, the production of livestock and poultry - by 4.2%, raw milk - by 3.3%), and next year it will add another 4.4%.

But this is just a warm-up, albeit a record-breaking one.
Yesterday, the Russian Prime Minister mentioned that one of the main strategic documents of our government is the "Doctrine of Food Security of the Country". According to Mikhail Mishustin, "its implementation is one of the foundations of our sovereignty, which is also aimed at improving the quality of life of our citizens." So: according to the doctrine and the instructions of our president, by 2030, the volume of production of the Russian agro-industrial complex should grow by at least a quarter compared to 2021, and exports should increase by one and a half times.

Ambitious? Yes. Feasible? More than.

It is not for nothing that Western media outlets have been constantly repeating in recent years that Russia has turned its agro-industrial complex into a branch of the Ministry of Defence and that Russian agricultural exports are our powerful “silent weapon.”

Russia is the absolute world leader in the export of wheat, barley, corn, sunflower and rapeseed oil, peas and frozen fish: for example, every fifth loaf of bread in the world is of Russian origin. Every year we expand the list of countries that buy our food: this year Russia supplies food to 160 countries and even North America continues to buy our wheat, despite the current situation. The number of countries that buy Russian wheat has grown from 57 to 67 in a year.

And this means that we have technically pushed someone aside again. For example, the market is seeing a sharp decline in the share of wheat from Argentina and Australia , with whom we competed fiercely: apparently, we "couldn't do it". In Tunisia , Algeria and Morocco, we continue to squeeze out European - mainly French - wheat, which has led to a decline in its export from France over the year from nine million tons to 5.6 million tons (greetings to Macron from Russian pasta).

We also react flexibly and creatively to the situation. For example, against the backdrop of serious climate problems with sugar production in Brazil (about 80% of the world market), India and Australia, our authorities immediately got their bearings and lifted the sugar export ban that had been in effect until now, and now we are entering 18 national markets with a potential of 600 thousand tons (for starters).

And so as not to get up twice, on September 19, Vladimir Putin extended the embargo on the import of any food from Western countries to Russia for two years at once, and now it will be in effect until December 31, 2026. And then we'll see.

The agricultural sector of Russia employs about six percent of the entire working population. This is a whole army, an army of workers who strengthen our country's economy every day. According to Mikhail Mishustin, the success of the domestic agro-industrial complex is "the merit of our agricultural producers."

For those who are now moving forward on the southwestern front, it is very important to know that there is a strong rear behind them. And we can say with absolute certainty that with such a rear and such people we have no other option than a complete victory.

https://ria.ru/20241011/oruzhie-1977493498.html

Russia has achieved complete self-sufficiency in potatoes, 10.20.2024.

Russia has achieved full self-sufficiency in potatoes for the first time in eight years.

MOSCOW, 20 Oct — RIA Novosti. Russia achieved full self-sufficiency in potatoes for the first time since 2015, according to RIA Novosti’s analysis of Rosstat data.

Thus, last year the level of self-sufficiency in this root crop increased by 6.5 percentage points and amounted to 101 percent. The last time such a situation arose was in 2015, and with a similar indicator.

Among the seven main food categories, Russia fully satisfies domestic needs for two more groups: meat – 101.7 percent, and fish – 152.9 percent.

Self-sufficiency in eggs is 98.6 percent. But for milk and vegetables and melons it is significantly lower - 86 percent and 89.1 percent, respectively.

Russia's own production covers the least the consumption of fruits and berries - last year the figure reached only 44.6 percent.

According to the Russian food security doctrine, the minimum threshold values ​​for the country's self-sufficiency in basic types of food are set as follows: meat - at 85 percent, milk - 90 percent, fish - 85 percent, potatoes - 95 percent, vegetables and melons - 90 percent, fruits - 60 percent.

https://ria.ru/20241020/kratofel-1978951970.html

Russia has developed "super grains" for cold winters, 10.21.2024.

MOSCOW, 21 Oct — RIA Novosti. Specialists from the Yenisei Siberia Scientific and Educational Center have developed new varieties of grain crops used in the production of bread and livestock feed. According to them, the new types of basic agricultural crops are not inferior to existing ones in terms of technological parameters, but also exceed their analogues in yield by 10–15 percent. At the same time, the new grain crops are adapted for Siberian territories and have increased frost resistance, the Scientific and Educational Center project office reported.

Plant breeding is the development of new varieties with improved properties: germination, yield, or the necessary structure of industrially used parts.

Selection is based on the analysis of the plant genome sequence and the identification of genes "responsible" for specific properties of the agricultural crop, explained specialists from the Scientific and Educational Center (SEC) "Yenisei Siberia".

To obtain plants with improved properties, the carriers of the "supergene" are crossed naturally by pollination; external interference in the DNA sequence is not required, the scientists emphasized. This approach to obtaining new varieties takes from 10 to 12 years from the moment the necessary sections of the genome are identified until the new variety is registered in the State Register of Agricultural Crops for further use in industrial and private farms.

Specialists of the Yenisei Siberia Scientific and Educational Center have developed varieties of grain crops (wheat, barley and oats) with increased productivity. To adapt crops to the climate, primarily of Krasnoyarsk Krai and the Republic of Khakassia, some of the new types of winter crops have increased frost resistance.

"Agricultural crops are divided into spring and winter crops. Spring crops are usually sown in late spring, and the harvest time is in September. Winter crops are sown in late August, grow during autumn and winter, and mature by mid-spring, so they require additional resistance to winters, which in recent years in Siberia can be low in snow," said Sergei Gerasimov, head of the gray grain selection laboratory at the Krasnoyarsk Research Institute of Agriculture of the Siberian Branch of the Russian Academy of Sciences.

The specialist specified that the team has developed, tested and is undergoing state-level testing of both winter and spring varieties of wheat, rye and barley, the yield of which is 10-15 percent higher than that of standard varieties. In addition, the new varieties of barley are forms with smooth awns (shoots on the flower or spikelet scales of plants), which are the most preferable for feeding to farm animals, since they do not injure the oral cavity.

At the same time, tests conducted at the institute showed that, based on technological indicators of grain: bread yield, flour strength, gluten content, good quality flour can be obtained from new varieties of winter rye.

"Currently, our developments are in the process of testing, patenting and inclusion in the State Register of Breeding Achievements, after which they will be available to the largest agricultural holdings. In order to obtain a larger quantity of seeds of new varieties of grain crops for the market, we are already engaged in their reproduction," the specialist emphasized.

Gerasimov added that the new varieties were given names derived from Siberian toponyms. For example, the barley called "Abalak", previously created by the same specialists together with scientists from the Institute of Northern Trans-Urals, now occupies about half of the sown area and is in first place in the Tyumen Region.

The activities of the world-class REC "Yenisei Siberia", whose project office operates on the basis of the Siberian Federal University , are aimed at improving the environmental situation in the region and decarbonising the industry of Russia. The REC includes nine universities, five research institutes and 14 industrial enterprises. The scientific and educational centers are created within the framework of the national project "Science and Universities" of the Ministry of Education and Science of Russia.

https://ri.ria.ru/20241021/nauka-1978684412.html

Putin deals the West an unexpected blow, by Olga Samofalova for RiaNovosti.10.24.2024.

The BRICS countries gathered in Kazan declared their readiness to create their own grain exchange. The initiative voiced by Vladimir Putin revealed the obvious unfairness of the global grain trade system. How did it happen that all grain exchange indices are formed in the USA and Europe, namely the Chicago CME Group and the French MATIF? After all, it is the BRICS countries, including new members, that occupy almost half (44%) of the world grain production market and the same amount of the world grain consumption market. Despite such a huge weight of the BRICS countries in the world grain trade, Russia and other countries continue to depend on the mood of the West.

Okay, the United States produces 450 million tons of grain, but how did France become the price controller in this market, given that it produces only 65-70 million tons of grain? But the United States has long looked strange as a helmsman in the global grain market. For comparison: China alone produces more than 630 million tons of grain per year, together with India - about a billion tons, and together with Russia - already more than 1.1 billion tons (and all BRICS countries - 1.24 billion). China, India and Russia are the three largest grain producers, next on the list is Brazil. Between them are the United States, which, of course, is also one of the most important players in the market, but it is the only Western country in the top 5. The balance of power is clearly on the side of developing countries, which have many common points of contact on a huge number of issues and are tired of remaining in the background, sitting on the bench, at the direction of the United States. In this regard, the BRICS Union creates a fertile field for the realization of the ambitions of these states, which are eager to create their own international team.

How did the US begin to dictate to the whole world at what prices to trade grain, who is cooler and how much they should earn? It's very simple: they took advantage of the post-war situation in time, quickly realizing that they should create such an exchange at home, while the Soviet and European economies destroyed by World War II were clearly unable to resist and express their opinion. There was no war on the territory of the United States, so American farmers were a priori on top, they were not evicted from their lands, they were not killed, no one took workers into captivity, no one plowed trenches instead of planting winter crops. Exchange trading in general was historically formed at that time in the Anglo-Saxon financial system.

France caught up later, creating the MATIF exchange in 1985 to protect its own enterprises, and as the largest grain player on the European market, it organized trades in wheat. Although it is clear that Russia is many times superior to France . In the West, of course, they like not to compare individual European countries, but to add up the indicators of all EU countries - this way they look stronger. But now, perhaps, it is fairer to compare not with the indicators of Russia alone, but together with other BRICS members.

The presence of a grain exchange in the United States allows them to control world prices for grain and wheat in their interests or against competitors. For example, through statements and forecasts from the United States Department of Agriculture . This department often, for no apparent reason, gives very low forecasts for the Russian grain harvest, and is wrong not by thousands, but by tens of millions of tons. This immediately leads to a sharp increase in world prices and prices for wheat in Black Sea ports, conditionally by 20 dollars. And such a rise in price is not at all a benefit for Russian exporters. A sharp increase in export prices automatically leads to a rise in prices within the country. Otherwise, an imbalance occurs when it becomes more profitable to send grain for export than to sell within Russia, and business acumen dictates to export everything that is available. And then all the grain goes to foreign markets, and a deficit arises within the country. To avoid such catastrophic scenarios, the Russian leadership has to act quickly and harshly: ban the export of grain. The price damper mechanisms being developed also help.

The general scheme is clear. The US has a serious tool in its hands, with which they can, if they wish, organize a global food crisis: leave us without export income from grain and at the same time force many poor countries of the world to starve (they are also the main buyers of grain). Russia, of course, will not go hungry - we produce 150% more grain than we consume, but if exports are banned, other countries will be left without bread. The consequences of a food crisis in the world are dangerous.

The BRICS grain exchange can contribute to the formation of fair price indicators for products and raw materials, and will protect national markets from speculation and attempts to create an artificial shortage of food products, Vladimir Putin rightly noted.

Just as the United States once had after World War II, BRICS now has an incredible window of opportunity to make a name for itself, including on the global grain market. The association has everything it needs to do this: political desire, economic power, and a transformational context. But it needs to do it quickly, as the United States once did. That means moving from words to action as quickly as possible.

In addition to creating fairer prices within the BRICS exchange, it is possible that members of the association could receive grain at a slight discount, while the rest of the outside world would still receive market prices. This could attract new countries to join BRICS.

Cooperation of the union countries in the grain sector would also help them to obtain new markets. Now some countries are tied to American grain, and they cannot give it up, switch to the same Russian grain even for economic reasons - if our grain is more profitable, for example. Simply because they are afraid of US pressure.

Together it would certainly be easier to solve the problem of Western companies' reluctance to supply Russia with seeds, agricultural machinery and agrochemicals. Cooperation at the BRICS level would knock the arrogance out of these corporations or would form the basis for creating their own breakthrough technologies and production in these areas, without which an effective grain harvest is impossible.

Moreover, such points of cooperation will clearly stimulate the BRICS countries to implement other joint initiatives in various areas. One of the main initiatives that is constantly discussed, including in the West, is the creation and launch of the BRICS Bridge platform by central banks for settlements in national currencies, including digital ones, bypassing the US dollar system. And the solution to this problem will move faster if the BRICS members clearly understand the practical application and benefits for themselves now. The main goal is clear and understandable - it is liberation from the hegemony of the dollar, but this is a long-term task that requires patience, time and constant "small" actions. But grain trade without regard for the dollar, prices and speculations of the West, on its own rules - this is already a foreseeable practical result.

https://ria.ru/20241024/putin-1979666790.html

Further details:

BRICS to Destroy North America's Grain Hegemony, by Olga Samofalova for VZGLYAD. 10.24.2024.

The BRICS summit in Kazan discussed the creation of a BRICS grain exchange. Currently, all the levers of grain price control are in the hands of the US and France. And if almost a hundred years ago, when these rules were being formed, this was logical, now the US and France are far behind the BRICS countries, which together occupy almost half of the grain market. It is time to get rid of the completely unnecessary dependence on Western exchanges.

At the BRICS summit, Russian President Vladimir Putin proposed discussing the creation of a grain exchange, which could eventually transform into a full-fledged commodity exchange.

According to him, the opening of the BRICS grain exchange will help to form fair indicators of grain prices in the international arena, “to protect national markets from negative external interference, speculation and attempts to create an artificial shortage of food products.”

Historically, market prices for grain are set in dollars on the Chicago Mercantile Exchange (CME). The United States became the main supplier of wheat and corn during and after World War II, and that is why grain contracts began to be traded on their exchange. Europe and Russia, devastated after the war, of course, could not compete with American farmers.

In the 1980s, wheat also began to be traded on the French commodity exchange MATIF, as the French were the first in Europe.

However, the situation in the world has changed dramatically since then. According to the Grain Exporters Union, taking into account the expansion of BRICS from 2024, they will harvest 1.24 billion tons of grain per year this year, which is almost half - 44% of world production. And their consumption will be about the same - 1.23 billion tons, or 44% of world production. Initially, BRICS consisted of five countries - Brazil, Russia, India, China and South Africa, and from January 1, 2024, Saudi Arabia, the UAE, Egypt, Iran and Ethiopia joined the association.

The US, of course, is also among the top five countries in terms of grain production. They are in second place with 450 million tons. But the other four in the top five are BRICS countries: China is in first place, India is in third, Russia is in fourth, and Brazil is in fifth, and they exceed the US three times. France is in the very last place in the top 10 and significantly lags behind even Russia in terms of production.

Today, it would seem much fairer if the BRICS countries became the “trendsetters” in the global grain market.

"Historically, large quantities of grain have passed through the ports of Europe and the USA, and a price had to be set for them. That is why prices began to be set on the Chicago Mercantile Exchange. This situation suited everyone, since the rules of trade were developed, including issues of product supply and financial settlements. But now, when there are significant disagreements between key players in the global market, including in terms of payments, creating your own financial infrastructure and payment system makes it possible to organize an alternative exchange platform," says Ekaterina Novikova, associate professor of the Department of Economic Theory at the Plekhanov Russian University of Economics.

“The idea of ​​creating a grain exchange for the BRICS countries is quite sound: the more opportunities there are to determine prices without the influence of Western financial institutions, the more opportunities our farmers will have to sell their products more profitably.

A significant advantage is that within the framework of the BRICS grain and commodity exchange, a common settlement system will be created, in which they plan to move away from the dollar,” says Natalia Zgurskaya, CEO of the grain supply company Zemlitsa.

Novikova agrees that the new exchange can help to form fairer prices for grain, taking into account the interests of all market participants. "Moreover, the price can be formed for the internal BRICS market with a small discount, and for the external market - at the market price," Novikova believes.

“The new system will make key grain suppliers more independent from the Western bloc of countries, which, using financial instruments, can artificially inflate or deflate the cost of goods, thereby causing imbalances in different economies,” Novikova adds.

How exactly can the US put pressure on prices and influence the global grain market? For example, the US Department of Agriculture can deliberately lower forecasts for the Russian grain harvest when there are no compelling reasons for this. For example, in 2021, the department unreasonably lowered forecasts by 12.5 million tons of grain for Russia at once. And this immediately caused an increase in world prices, and wheat in the Black Sea ports rose in price by $ 20.

If the US wants, they can use this method to create an artificial grain deficit on the world market through a sharp rise in prices and leave poor countries without a piece of bread, and Russia without additional income from exports.

How can global grain price growth lead to a catastrophic scenario? When export prices soar, a market imbalance with prices inside Russia is created. Either our prices should also jump sharply, or exporters will start exporting all the grain abroad, which could create a physical deficit on the domestic market. In such situations, the authorities usually impose a manual ban on exports. In this way, we save domestic prices, consumption, and fight the crisis. But, of course, this deprives Russia of its income from grain exports, and this is a significant part of the budget revenue. For example, in 2024, the budget should receive 215 billion rubles from export duties on grain and oilseeds.

One should not forget about financial sanctions that hinder trade, including grain. “Because of sanctions, the goods of a particular country may not be accepted for exchange transactions in principle,” says Novikova.

"In practical terms, the new exchange can exclude cash-settled food futures contracts from its trading to avoid speculation, and only allow BRICS participants to trade on this trading platform. When Russia has a poor harvest, it will be able to supply goods from its reserves to the exchange, and with a new record harvest, reverse the situation and increase its own reserves to stabilize grain prices on the BRICS exchange.

However, first of all, it is necessary to solve the problems with cross-border money transfers, and secondly, with logistics and insurance of deliveries," says Vladimir Chernov, an analyst at Freedom Finance Global.

https://vz.ru/economy/2024/10/24/1293994.html