April 19, 2017 - Fort Russ News
Naspravdi - Translated by Kristina Kharlova
Russia can feed Europe in another 10 years of sanctions
Russia is experiencing an agricultural boom, and domestic market hides a lot of opportunities for investors, wrote on April 19 the British conservative newspaper The Financial Times with undisguised bitterness.
After 2014, when many countries imposed sanctions and Moscow responded with countermeasures, Russia saw an opportunity to develop domestic companies. Some Western analysts and economists doubted that it would work, but "optimism was justified", reluctantly noted the British edition.
|Russian grain exports increased to 34,5 million tons in 2016 - Rosstat
It turns out that in the past year the volume increased. So much so that in 2016 Russia became the largest supplier of grain on global markets. From 119 million tons of grain grown 34 million tons was exported, specifies FT. Also due to increased production of pork and poultry Russia eliminated the need for import of these products.
Not only that, which the British did not mention, prices fell on the domestic market - which I have found myself. With undisguised surprise, observing with my wallet that the prices of many products, including pork, eggs, chicken, and others are falling even in rubles. Despite the fact that the dollar grew, at times by 2.5 times compared with 2014.
Overall products of the agro-industrial complex has become the country's second main export item after oil and gas. Thanks to sanctions and a dictator Putin a regional gas station is turning into a rapidly developing export-oriented Upper Volta with chickens, pigs and "Armata" tanks in addition to missiles.
Thanks to increasing profits farmers invest in technology and purchase more fertilizer, therefore the Russian agricultural production is likely to grow in the future, says The Financial Times, inserting the word "perhaps".
Perhaps chickens are milked. We need the sanctions, we will learn to milk something else. Oh, if not for the West ... "Until the thunder roars, the man will not pray" [Russian proverb] And so in March, Russian minister of agriculture Alexander Tkachev has proposed to extend the food embargo by another 10 years. In the coming years Russia will become the net exporter of food.
In early February, the agriculture ministry reported that during the food embargo domestic farmers have substituted imported products by almost $4 billion.
Last year export of the Russian agricultural sector made up $17.1 billion and continues to grow. The country is nearing record volumes of grain harvest, unseen since the mid 1970's - around 124 million tons in 1973, I think, a year. Despite the fact that the number of people employed in the industry since then has been steadily declining.
The share of non-oil non-energy exports of Russia have increased as a result by 38.2% and totaled $109.1 billion, according to the Russian export center (REC).
Read more on Bloomberg:
Russia Becomes a Grain Superpower as Wheat Exports Explode