Land & Farming.

[TsarSamuil]

‘Merkel, Be Tough! Don’t Give up! Don’t Lift the Sanctions!’ – Russian Farmer.

Ten more years of import restrictions will consolidate the recovery of Russian agriculture

RI
Oleg Sirota (Komsomolskaya Pravda) Wed, Jun 1

Originally appeared at Komsomolskaya Pravda. Translated by Julia Rakhmetova

The author is a Russian farmer whose business grew following the mutal sanctions between Russia and the EU. He rejoiced at the news that the Russian government prolonged food counter-sanctions. He explains why in this letter he sent to Komsomolskaya Pravda, Russia’s most popular daily newspaper.


“Dmitry Medvedev, thank you! I totally support the government’s decision to prolong the sanctions for eighteen months. This is very good news! I even wanted to write to Merkel (Not my female-goat, the other one who lives in Germany): “Merkel, hang in there! Don’t give up! Don’t remove the sanctions! I haven’t finished repaying the loan on my cheese factory and cowshed.”

What does this bring me (not only me but everyone investing in agriculture)? Confidence! As soon as I heard the announcement, I got the courage to expand production, I felt free to order a three-ton cheese vat. And a fancy press. Before I hesitated – "Is it worth it?" – and now I finally decided to do it. I’m also ordering a new thermostatic box for yogurt and a new yogurt maker, and planning to set up a special van for deliveries – sales volume of yogurt keeps growing and I’ve expanded to Mitino (a district in Moscow) and the Dorogomilovsky market. I don’t need to think twice!

As for farm construction, the government has already issued me the subsidy I recently won. You can joke about it, but the Medvedev government found money for the "Family Farm" program after all. So I’m officially declaring that I’m starting a cowshed on Monday!

Besides building a cowshed, I need to expand the cheese factory promptly and dig new cellars – I’m planning to double production space, but I need the money. I will shake it out of the bank and get government compensation for the interest. That’s hard – getting a government subsidy turns out to be much easier than getting bank credit.

I wish the government would further reduce interest rates for agricultural manufacturers, like in Germany. My German colleague Gunter still thinks I’m joking when I tell him that interest rates for bank loans for farm construction are 20%. He says 1.5% is already high.

I’m also longing for the prolongation of the sanctions not, just by 1.5 years but by 5-7 or even 10 years.”

[TsarSamuil]

Russia Becomes World’s No. 1 Grain Producer, Leaves US, Canada Behind.

Sputnik
RUSSIA 12:27 16.06.2016

According to the US Department of Agriculture, Russia now leads the US in the volume of grain exports, with 35 million tons exported in 2016, which is 3.5 million more than America US did, and exceeds by 2 million tons Canadian exports.

In 2014, the US was the world’s No. 1 grain exporter, followed by Canada and Russia, which has now moved to the first place.

Russia sells grain to 130 countries, above all Egypt, Turkey and Iran. This country’s grain exports considerably increased in 2002 making it one of the top ten grain exporters around.

In 2016 Russia, for the first time in its modern history, topped the list of the world’s leading grain exporters.

“A strong US dollar did play a part in this adding to the cost of US grain exports and enabling Russia to clinch deals to sell wheat to such traditional buyers of American grain as Nigeria and Mexico,” Russian Grain Union Vice President Alexander Korbut told Sputnik.

Korbut said that, barring bad weather, Russia was likely to maintain its lead into the next year.

Russia expects to take in some 64 million tons of wheat with the total grain harvest estimated at between 106 and 111 million tons.

This means that this year’s harvest could exceed the previous record of 108.2 million tons taken produced in in 2008.

This is a recurring trend across most of the agricultural sectors with poultry and pork meat production accordingly tripling and doubling since 2006.

Western economic sanctions, imposed on Russia over its alleged role in the armed conflict in eastern Ukraine, have played right into the hands of Russian farmers.

In 2015 the export of excessive agricultural produce earned Russia a record $20 billion, more than the sale of arms. Simultaneously, food imports dropped by a hefty 40 percent.

[TsarSamuil]

Russia strengthens position on global food market.

RT.com
5 Jul, 2016 15:00

Russian Prime Minister Dmitry Medvedev said on Tuesday the country is gaining momentum as one of the world’s leading exporters of agricultural products.

"Russia is successfully regaining the status of a major supplier on the global food market," said Medvedev, adding it has been achieved due to effort by the government, industry associations, and farmers.

He also said there has been unprecedented in its size state support for the agricultural sector.

“The government has provided 215 billion rubles ($3.3 billion) for the development of the agricultural sector,” said the head of government.

According to Medvedev, everything has been done to transform agriculture from import to export, and that the “Russian market reached a such a quality that domestic and foreign consumers could chose Russian products without hesitation.”

Following Western sanctions and Russia’s food embargo two years ago, the Prime Minister said the country would pursue a policy of import substitution which could boost domestic agriculture. This would give Russian farmers a unique opportunity to replace imported goods with their own produce.

Western sanctions were a “dead-end track”, but Russia has been forced to respond to the measures taken by Western countries, Medvedev said at the time.

Russia was listed as the world’s ninth largest food manufacturer in 2013, and has reduced imports by nearly 40 percent to $26.5 billion from two years ago, according to government data.

The country is expected to become the world’s largest wheat exporter this year, outpacing Canada and the US. Russian wheat exports are set for a record 23.5 million metric tons.

According to Russian Agriculture Minister Aleksandr Tkachev, agriculture may soon become the country's second biggest export after energy.

[TsarSamuil]

Agricultural machinery production in Russia surges 35%.

RT.com
15 Jul, 2016 11:54

In an attempt to shift the economy from raw materials, Russia is putting effort into the agriculture sector. From January to June, the country produced 35 percent more tractors and harvesters than in 2015.

"The growth of the industrial production of agricultural machinery could be estimated at double-digit figures. The increase in production of combine harvesters in the first half exceeded 35 percent year on year, we will increase it to 50 percent," said Deputy Industry and Trade Minister Aleksandr Morozov on Friday.

Agriculture Minister Aleksandr Tkachev added the government budget has allocated 10 billion rubles (about $160 million) to update machinery.

“Such a volume of state help will allow farmers to purchase 17,000 new items of machinery on favorable terms,” said Tkachev. There will be $3.57 billion in state support for Russian agriculture in 2016, he added.

Last week, the UN’s Food and Agriculture Organization (FAO) projected a record crop for Russia this year. Russia produced almost 105 million tons of cereal in 2015 and has plans to boost production to over 111 million tons by 2017, the agriculture ministry reported.

The ministry wants to invest 2.9 trillion rubles ($38.2 billion) in the next 15 years with private investors providing an additional 3.1 trillion rubles ($40.8 billion) to increase cereal production by a quarter by 2030.

[TsarSamuil]

Russia dominates global wheat market.

RT.com
20 Jul, 2016 14:10

For the second year running, Russia is the world's top wheat producer with exports of 22.5 million metric tons of grain this year, according to the US Department of Agriculture.

Russia has won contracts to exports 120,000 tons of wheat to Egypt. In the fall, as soon as the new crop is harvested, Russia will start supplying wheat to China, according to the Agriculture Ministry.

The country’s leading position in the global wheat market is because of its low-price strategy which has increased its market share.

The weakened national currency, favorable weather conditions as well as more investment has pushed forward Russian agriculture and unseated the US as the world’s biggest wheat exporter.

The Black Sea region, including Ukraine and Romania, traditionally takes the lead at the start of the season with French exports catching up later.

However, this year France is out of the league of top wheat sellers after heavy flooding waterlogged fields and increased concerns over the grain quality. The soggy fields reduced crops by 17 percent to 34 million tons this season, according to German agriculture consultant BayWa.

“The Black Sea just has so much to sell right now and the quality too is coming out better than expected,” Matt Ammermann, a commodity risk manager at US-based financial services firm FCStone told Bloomberg, adding that traders were not even willing to look at French wheat after the harvest delays.

Wheat for loading at Black Sea ports was selling for $165 per metric ton as of Friday, according to the Moscow-based Institute for Agricultural Market Studies. That is at least $15 cheaper than French wheat.

Russia is expected to gain nearly 16 percent of the global market this year compared to 14.4 percent a year ago, according to Kiev-based UkrAgroConsult. France’s share will reportedly decline to 11 percent from 12.1 percent last season.

“Russia’s position in the wheat market is changing because Russian farmers have received high margins from selling their grains crop of last year, which they have used to invest in better farming and technology,” said Sergey Feofilov, the head of the agency, as quoted by Bloomberg.

Experts are positive on Russian wheat production through 2020, citing the weak ruble over the period.

“Russia will thus be in a prime position to compete on volume and price against France, Romania and Ukraine,” Alexandre Andrey, an analyst at BMI Research, told Bloomberg.

[TsarSamuil]

Bulgaria's 2016 Wheat Production Rises 16% Y/Y through End-July.

Novinite.com
Business | August 5, 2016, Friday // 08:55

Bulgaria’s wheat crop increased by 15.6% year-on-year in 2016 through July 31, reaching 5.18 million tonnes due to both higher yields and increased acreage under wheat, according to new figures released by the country’s Agriculture Ministry.

The average yield was 4.79 tonnes per hectare in 2016.

Bulgaria also had in stock 526,694 tonnes of wheat from previous years as of end-July.

Total wheat consumption in 2016 through end-July was 344,042 tonnes. Of these, 123,000 tonnes were domestic consumption and 221,042 tonnes were exported. This compared with

The average export price in 2016 through end-July was about EUR 153 per tonne, according to Trud daily. Bulgarian wheat exports were directed mainly to the countries of the Middle East and Greece. There were also exports to Yemen, Somalia, Ethiopia and the Philippines, Trud said on Thursday, citing a Bulgarian trader.

Increased production pressured domestic prices to BGN 248 (EUR 124) per tonne of bread wheat from 2016 crop, down from BGN 295 as of end-July 2015.

[TsarSamuil]

Medvedev calls for cheaper loans to Russian farmers.

RT.com
10 Aug, 2016 09:30

As Russia shifts its economy from energy exports to agriculture, Prime Minister Dmitry Medvedev wants to ease borrowing costs for the country’s farmers.

On Wednesday, he met with farmers from Russia's southern Krasnodar region. They said they currently take out loans with 14 percent annual interest, but with government subsidies the rate is six percent.

“Six is OK, but it’s better the rate was cut to five percent,” Medvedev said.

He also backed the idea of giving out unused land to farmers without red tape."Speaking about the possibility of giving out unused land to farmers without a bid process, I believe that it would be a good idea," said the prime minister.

According to Medvedev, legislation changes have made things easier, but not to the extent the government would like.

He added that the government should continue to subsidize farmers. "The most important thing now is not to slow down. That is why the program will continue in full,” he said.

After oil prices fell from $114 per barrel two years ago to around $45 currently, Russia has been trying to diversify its economy, which is heavily dependent on energy exports.

The country has become the world’s biggest wheat exporter, overtaking the US and Canada. According to Agriculture Minister Aleksandr Tkachev, the country wants to sell 25 million tons of wheat abroad this year.

In 2015, Russia harvested 13.2 million tons of corn, 1.1 million tons of rice, 2.7 million tons of soybeans and 900,000 tons of buckwheat, the minister said. Last year’s grain harvest was about 104.8 million tons.

[TsarSamuil]

Bumper crop: Russia sees 40yr-high harvest.

RT.com
8 Nov, 2016 14:59

Russian Agriculture Minister Aleksandr Tkachev said on Tuesday the country’s 2016 harvest of grain and leguminous crops is the highest since 1978.

"Russia harvested 117 million tons of grain this year, which is the best result for the last 38 years. The country’s harvest was higher only in 1978, at 127 million tons," the minister said.

The result is better than projected as the Agriculture Ministry said earlier the grain harvest in Russia may be at least 110 million tons, or reach 113-116 million tons under good weather conditions.

According to Tkachev, productivity has increased by 60 percent in recent years. He forecasts production of grain to grow by 25 percent over the next 15 years as a part of the strategic development of the cereals market.

In 2016-2017, Russia plans to export up to 35 million tons of grain, including 28 million tons of wheat, the ministry said.

Russia has significantly boosted its grain exports over the past two years, outpacing the world’s biggest wheat exporters, Canada and the US. The country has resumed exports to Egypt, one of its biggest customers. Exports currently average 4-5 million tons a year and are expected to reach six million tons per year. Moscow and Cairo are also discussing Russian participation in the construction of grain infrastructure in Egypt.

Russia has also renewed grain deliveries to Iran. The shipments are reported to be at least 1.3 million tons per year.

Experts say the weak Russian ruble, favorable weather conditions as well as more investment will drive Russian agriculture forward.

[TsarSamuil]

Tens of thousands of Russians claim free land in Far East.

RT.com
4 Feb, 2017 15:37

Over 48,000 requests have been received this week from Russian citizens responding to a state-backed program giving away a free hectare of land in the Far East.

The program approved by Russian President Vladimir Putin last May is meant to populate and develop the region.

Starting February 1, any Russian citizen can claim their free hectare (10,000 square meters) of land in Russia's Eastern and Pacific regions.

Claims can be registered on the official website: xn--80aaggvgieoeoa2bo7l.xn--p1ai/

The areas include Yakutia, Kamchatka, Chukotka, Primorye, Khabarovsk, Amur, Magadan, Sakhalin, and the Jewish Autonomous Regions.

The claims are coming from all over Russia, according to Kamchatka Governor Vladimir Ilyukhin.

“The geography is wide: Moscow, Moscow Region, Lipetsk region, Tatarstan, Bashkortostan, practically all of central Russia wants land in Kamchatka. It makes me happy. Those who want land here will get it,” the regional governor said.

About 28 percent of Russians interested in the program say they want to use the land to build a home. About 17 percent want to use the land for agriculture or raise cattle. Another seven percent say they will use the land to build hotels and develop local tourism.

The land can be used for any lawful purpose, and the new owners cannot rent, sell, or give it away for five years.

[TsarSamuil]

Russia produced $4bn worth of food since banning Western imports.

RT.com
6 Feb, 2017 14:33

The introduction of a limited Western food embargo three years ago has increased domestic production, said the deputy head of the Russian Agriculture Ministry Yevgeny Gromyko.

According to him, "almost $4 billion worth of Russian products have been produced as part of the so-called import substitution.”

That means, previously imported cheese, sausages, and other products have been replaced by domestic ones, Gromyko told reporters on Monday.

Moscow banned imports of agricultural produce, food and raw materials from some Western countries in 2014. The move was in response to EU and US sanctions against Russia over its alleged role in the Ukrainian crisis.

The sides have repeatedly broadened and extended the restrictive measures since then despite warnings to Western governments that their economies are suffering. Some policymakers and businesses say the measures have proven to be politically ineffective and economically harmful for both Russia and Europe.

Russian President Vladimir Putin recently said the country's reciprocal action in the form of an embargo on certain Western food products were good for Russia’s economy and should last "as long as possible."

He explained the ban was also in the consumers’ interest, with high-quality domestic products at lower prices becoming more available.

Prime Minister Dmitry Medvedev said it is necessary to develop agriculture and industry so that it will be competitive with the West.

According to Medvedev, the measures were introduced to stimulate domestic production, and many Russian companies have been asking the government to keep them.

"We have imposed the embargo not to annoy our Western partners but mainly to develop our economy. Russian businesses asked us not to cancel it because of the opportunities they have,” said Medvedev.

[TsarSamuil]

Venezuela to import 60,000 tons of Russian wheat per month.

RT.com
19 May, 2017 10:23

The President of Venezuela Nicolas Maduro has said the country is to import large quantities of Russian wheat. The announcement followed a phone call to Russian President Vladimir Putin.

"We are ready, all the documents have already been signed, and very soon Russia will supply Venezuela with 60,000 tons of wheat per month on a regular basis starting from this year," Maduro said.

He added five enterprises to assemble Russian trucks would start soon in Venezuela.

Maduro and Putin discussed strategic partnership and the implementation of mutually beneficial projects.

According to Russian agricultural watchdog Rosselkhoznadzor, Venezuela relies almost exclusively on imports of wheat. Last year the country imported about 120,000 tons of grain per month from the United States and Canada, said the agency.

Last year's Russian grain harvest was the highest since 1978. The country has significantly boosted its grain exports over the past two years, outpacing the world’s other big wheat exporters, Canada and the US.

Russia exported 34 million tons of grain last year from a record crop of 119 million tons. Shipments to Egypt and Iran have also resumed.

Saudi Arabia has expressed an interest in buying more grain from Russia, including wheat. In 2015, the kingdom was the biggest buyer making up 28 percent of Russian grain exports, larger than Turkey (25 percent) and Iran (12 percent).

The head of the United Nations’ Food and Agriculture Organization (FAO) Jose Graziano da Silva said Russia has made considerable progress in developing its agricultural sector and is a major player in the world agricultural market.

[TsarSamuil]

Russia: Plague of locusts descends on Dagestan.

Ruptly TV
Jun 28, 2017



A swarm of locusts descended on the region of Dagestan, infesting at least 100,000 acres on Tuesday, prompting authorities to declare an emergency.

Various measures were taken to tackle the issue, such as spraying pesticides from tractors and airplanes.

SOT, Local resident (Russian): "There are a lot of locusts. You can see how many of them are here. They devour everything. They destroy green fields and there is nothing, just bare ground. There are the greens over there, which they have not yet reached. It makes no difference for them: trees, shrubs or grass. If they devour it all, the cattle will have nowhere to graze. We would not know what to do then."

[TsarSamuil]

Russian farmers feeding half the world thanks to biggest grain harvest ever.

RT.com
9 Mar, 2018 09:21

This season's grain production in Russia has beaten last year's bumper crop and the record harvest set by the USSR in 1978, according to new data revealed by the statistics agency Rosstat.

Russia has harvested around 135.393 million tons of grain, including 85.9 million tons of wheat, during the current growing season. This is a million tons more than the previous record. Russia’s agriculture ministry revised its projections for exports, with 50 million tons of grain now expected to be shipped abroad.

A bumper wheat harvest cropped by Russian farmers in the current agricultural season is projected to push the US from the position of the world’s top grain exporter. The exportation of foodstuffs from Russia totaled $20.7 billion in 2017.

However, imports to Russia are still higher than exports abroad. President Vladimir Putin said during his speech to the Russian Federal Assembly that exports of food to international markets should exceed imports within as little as four years. The president urged an increase in exports of meat, and the degree of self-sufficiency in beef, dairy products and vegetables. Last year, exports of meat from Russia reached 237,000 tons, representing a 42 percent increase.

The country’s agriculture ministry expects grain crops to rise to 150 million tons by 2025, with 60 million tons to be sold abroad.

Russian grain crops are currently exported to countries including Egypt, Turkey, Bangladesh, Saudi Arabia, Indonesia, Azerbaijan, and Nigeria. From July through to the end of February, Russia sold more than 33.5 million tons of grains to international markets, marking a 39.7 percent growth against the same period a year ago. Exports of wheat reportedly rose by 40 percent to 26.25 million tons with shipments of barley nearly doubling to 3.9 million tons.

[TsarSamuil]

Agriculture makes much more money for Russia than arms exports – Putin.

RT.com
13 Mar, 2018 10:41

The recent boost in Russian agriculture has made food sales abroad much more profitable for the country than exports of military weapons, according to President Vladimir Putin.

“Today, agriculture exports exceed arms sales by more than a third. $28.8 billion from agricultural sector, $15.6 billion from the defense industry," Putin told farmers in Krasnodar on Monday.

He said that Russian exports of agricultural products and foodstuffs had grown 16-fold since 2000. In 2016, Russia became the world leader in wheat exports. Since the early 2000s, the country’s share of the world wheat market has quadrupled, from four to 16 percent.

Russia will soon sell more produce abroad than the country imports, according to the president.

"I am confident that Russia will become one of the leaders of the global agri-industrial market in the next few years. I told the Federal Assembly that in four years we plan to supply more food to the world markets than we import. That is, Russia will become a net exporter of food,” said Putin.

To achieve this goal, Russia plans to develop infrastructure, broaden the railway network, increase the capacity of seaports, elevators, and storage terminals, he added.

The president said that Russia should be aiming at exports of environmentally friendly and quality products. GMO has been banned in Russia since 2016. Putin previously said he wants to make Russia the world’s largest seller of GMO-free food.

[TsarSamuil]

Kuban-Quality Gold Standard Grain! Russia Has Become World Agricultural Leader Again.

Vesti News
Mar 17, 2018



President Putin went to Krasnodar to participate in the All-Russian Agricultural Producers Forum. According to Vladimir Putin, Russia should become a leader in the global agricultural market in the next few years. The President saw what's being done for that at the National Grain Center.