The foundations of Russia’s agricultural dominance have been in place targets for domestic production vs demand. The Food Security Doctrine achieved thanks to the adoption of these targets in the ‘State Program’. This introduced government measures to support the development in agriculture by focusing federal and region budgets into providing subsidies and loans that promoted development of technology, innovation and improvement of infrastructure. Numerous amendments to the Food
for agriculture in order to support the Food Security Doctrine. Under the scheme, regional authorities can accordingly distribute federal funds under the state plan as follows
V
• Subsidised rail transportation although under question with WTO as an export subsidy)
• Subsidised short term investment loans at
• Partial compensation of interest rates for investment loans in animal crop production
• Partial compensation of capital expenditure for new and modernised agricultural facilities
• Partial compensation of costs of transporting exported food and agricultural products (also under WTO investigation)
• Decoupled support for crop producers (per hectare of arable land)
• Subsidies for dairy farmers per litre of sold milk to increased milk yields
• Subsidies to producers of agricultural equipment and machinery
Table 1: Food and Security Doctrine DOCTRINE 2010
GRAIN SUGAR
VEGETABLE OIL
MEAT AND MEAT PRODUCTS MILK AND DAIRY PRODUCTS FISH PRODUCTS POTATOES EDIBLE SALT
VEGETABLES, MELONS AND GOURDS
FRUIT AND BERRIES Source: Food Security Doctrine
N/A
N/A
Whilst undeniably laying the foundations, the State Program and Food Security Doctrine have combined to promote Russia’s agricultural sector into a world leader. It was arguably however the unintended impact of sanctions against Russia following the annexation unleashing Russia’s food and agricultural revolution. Overnight urban supermarket shelves emptied as the sanctions forbade the international trade to replenish the shelves. Moscow’s world famous restaurants which had grown rich and renowned produce. As a result domestically produced food has been celebrated and a number of enterprising and innovative ventures have capitalised, to take advantage of a booming domestic supply chain.
As is often the case with large scale incentives and rapidly changing markets, it is the well-heeled and the most. Russia’s evolving supply chain is being
DRAFT
ACTUAL LEVEL 2017
AMENDMENTS 2018
Russia therefore has arguably been a sleeping giant in been awoken. Rich with its famous fertile black earth, the Kremlin’s political policies have long shown that the intentions were there for a number of years and that Russia’s recent dominance on global trade was more is that that Russia has achieved its record grain domestic trade, resulting in volume of imported food and agricultural produce declining to its lowest level what’s to come from Russia with Putin well on his way of achieving the goal to double agricultural and food
George Eddell E:
george.eddell@admisi.com
21 | ADMISI - The Ghost In The Machine | July/August 2018
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32
