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Russia’s focus on grain and poultry export
By 2024, the Russian government anticipates that 818 billion rubles (approx. US$ 11 billion) will be invested in several hundred export-oriented agricultural projects. The country wants to give a positive boost on its grain sector, poultry exports and the animal feed industry.
BY VLADISLAV VOROTNIKOV, CORRESPONDENT S
Russia’s export development is expected to be mainly driven by expanded grain production.
ince the 2014 food embargo, Russia has lost almost all food exports from the USA, the European Union, and several other countries, with a lack of some products and food inflation as a result. But with sub-
sidies and dedicated projects, Russian agricultural companies managed to beat the proclaimed food security targets in most livestock industry segments, except for raw milk pro- duction. Russia is even looking to export more products.
Emerging economies Dmitry Krasnov, director of the Russian center Agroexport, has forecast that the Russian agricultural export is set to rise from US$ 30.5 billion (€ 27.2 million) in 2020 to US$ 37 billion (€ 33 million) in 2024. Out of the additional US$ 6.5 billion in export revenues, around € 2 billion will be for food products,
mainly meat, € 1.78 billion for oil and fat, and € 0.98 billion for grain. Nearly 81% of the investments are expected to be pumped into brand new projects. Just as in the previous years, the European part of Russia will account for the largest part of the growth in agricultural production and the lion’s share of the overall planned investments of around 305 bil- lion rubles (€ 3.8 billion). Until now, with the exception of grain, food of Russian origin has been primarily exported to the CIS region. “However, further growth in Russian agricul- tural exports will be mainly associated with countries in Asia, Africa, India and the Middle East,” Krasnov said.
A new grain era The export development is expected to be primarily driven by expanding grain production. Under a grain industry develop- ment strategy, the Russian government aims to produce 150 million tonnes of grain per year up to 2030 to meet growing demand for feed on the domestic market, as well as to sell more grain to foreign customers. To fuel that growth, the Rus- sian Agricultural Ministry, among other things, has recently rolled out a programme aimed at developing new highly-pro- ductive varieties of grain for 6 billion rubles (€ 80.3 million). The programme envisages the development of at least 26 competitive varieties of crops, including at least 17 varieties by 2025. “In the global market, we see three relatively new processes: the emergence of hybrid wheat varieties, genome editing using CRISPR technology, and the commercial devel- opment of GM seeds. Each of these phenomena, if successful, can dramatically turn the tides on the grain market and pose a serious challenge to our traditional seed production,” Dmytri Rylko, general director of the Russian Institute of Agri- cultural Market Studies, told the local magazine Agroinvestor. The main target of the new programme is to rebuild the Rus- sian grain industry and convince farmers to switch to more valuable sorts of grain. As explained by Elena Turina, director of the analytical department of the Russian Grain Union, the current production of valuable wheat with high gluten con- tent, or durum wheat, in Russia is insufficient, and this is the issue the new programme is designed to solve.
Boosting poultry exports In the coming decade, Russia will need more grain to feed the expanding poultry population, as the country is on
20 ▶ POULTRY WORLD | No. 1, 2022
PHOTO: PROAGRO
PHOTO: SHUTTERSTOCK
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