Does Russia have the capacity to become an agricultural powerhouse?
Enrique12 September, 2008, 18:26
Yes, Russia has the capacity obviously.
France exports every year almost 30 millon tonnes of agricultural products with an arable land which is five or six times smaller than Russia even if much more productive.
Russia already produces over 90 million tonnes of grain and exports over 4 million.not bad but comparing to France and the U.S. (which exports 90 million tonnes a year, as much as all the Russian production) there is space both for production and for exports.
What Russia needs is developing an efficient industry and market. China is importing more grain every year and Russian producers are closer than the American or French ones.
To achieve its export goals, Russia would need to increase production. Arable land that was left unused in the course of Russia's economic reforms could be used again.
This land amounts to some 20m-25m hectares, and farming it will enable Russia to increase output of agricultural products, primarily grain, by 30m tonnes, he said.
Under the state agricultural development program for 2008-2012, Russian grain production is expected to reach at least 100m tonnes in the next five years.
The country harvested 81.8m tonnes of grain in 2007, and is expected to produce about 85m tonnes this year.
Russia exported 16.7m tonnes of grain in 2007, 49.5 per cent more than in the previous year, according to the Federal Statistics Service. Grain exports totalled about 12m tonnes in the 2006-2007 agricultural year (July to June), and the country has exported over 13m tonnes of grain since July 2007.
An excerpt from an interview given by Russian Agriculture minister is quite self-explainatory.
*Increase in Yields
*Increase in land under cultivation
*More competition and efficiency, both in distribution and cultivation.
*Increased revenue models for farmers/agricultural producers.
No reason to believe that RF cannot only be a powerhouse but an Agricultural superpower in near future - if the above and other measures are taken.!
Russia’s Black soil is the most fertile on earth and of course they have an unlimited scope for production if modern production methods and machinery were put in place.
But, and this is a really big but, to export their products would prove to be a very big problem as they would face protectionism especially from within the EU and USA.
We have a massive problem in the EU with subsidies given to farmers especially French ones who are prepared to violently protect their interests Russia would find it almost impossible to export farm products into the EU’s protectionist environment.
Russia would have to look to the Asian or African market which may welcome them
The world needs more food but there are so many vested interests keeping the prices high it’s a scandal.
FORGET food!!!! Russia can grow 2 things VERY well that are in SHORT supply, Timber & Biodiesel Europe & US CANT grow all their fuel. Its also JUST as expensive as REGULAR Deisel and renewable. Timber is also in especially short supply in China & Japan.
Theer will be MORE money than with food production AND marginal land can support crops that cannot be eaten, but can be processed into timber & Biodiesel products.
