At a recent meeting on economic issues with members of the government, President of the Russian Federation V.V. Putin noted that in order for Russian farmers to be able to earn money, it is necessary that “they could invest in the result of the 2023 harvest, in processing, in animal husbandry.”
The priorities are clearly marked, and their choice in this order did not raise any questions. First of all, farmers should have the means to prepare and conduct spring sowing, processors should also not experience a financial deficit in order to purchase raw materials from agricultural producers in the right quantities and at affordable prices, and livestock breeders should have the necessary reserve for the purchase of feed and feed ingredients.
But one of the tasks that the president set before the members of the government, when he spoke at a meeting about the export of agricultural products, caused a stream of ambiguous comments and various kinds of guesswork in the press. “You can’t allow everything to be taken abroad: despite all the logistical restrictions on both freight and insurance, nevertheless, this flight will go, you understand? Already coming. Therefore, we definitely need reserves,” the president said.
The media and the expert community began to wonder whether this statement will be followed by restrictions on the export of agricultural products? What reserves and in what volume will be created in the near future? Was it intended to strengthen control over grain exports only?
These questions are now being actively discussed, and it seems that answers to them will be received soon, but it is clear that along with the emotionality and categorical assessment of the situation on the food market, an obvious and uncompromising conclusion has been made: grain, like other food, becomes worth its weight in gold!
The importance and status of the food resource is increasing, and this will require different approaches to handling it.
With the new geopolitical agenda, the role of grain in ensuring the country’s food security is growing.
Now the situation in the Russian food market is assessed as favorable. A record harvest of grain products has been harvested, an intervention grain fund in the amount of 3 million tons has been formed, plans are being implemented to export surplus wheat. True, prices for agricultural products are not currently in a positive trend for farmers, and no one will dare to say what will happen to prices next season, but the forecasts for the coming months are optimistic.
Among the first steps that the government will take after the meeting, experts name an increase in the volume of grain purchases for the intervention fund, the provision of preferential loans to farmers and the allocation of subsidies for the storage of food grains, for the creation of the infrastructure necessary for storage. A reduction in the grain export quota from the approved level of 25.5 million tons is unlikely to take place; this will push prices to an even lower level.
Another message to government officials attending the meeting is to pay attention to recycling. Whether approaches to it will be changed, time will tell, but at this stage, the grain processing segment is in a clear disproportion to gross volumes.
Grain processing in Russia is not a priority. Historically, it so happened that the Russian Black Sea grain is mainly exported abroad as a raw product, and not processed. Should we be proud that Russia is the world’s first wheat exporter?
The Russian grain industry is excessively export-oriented, too much, if not all, depends on exports, and changes are obviously required for the sustainable and progressive development of the industry.
The best experience on how to work with grain, a number of experts advise to study and adopt from neighbors – from the same Turkey. This country is not a grain power, but it is a leader in the export of flour. Turkish millers receive high added value by processing Russian grain, while Russia simply exports it, losing profitability.
