Export of agricultural products reached record levels

The export of agricultural raw materials and food from Russia has increased by 21% since the beginning of the year and by November 28 amounted to over $31.2 billion. This is more than the figure for the whole of 2020, according to a review by the Agroexport center subordinate to the Ministry of Agriculture. In the structure of exports, 13.4% of deliveries fell on the EU, 12% - on Turkey, 10.1% - on China , 6.9% - on South Korea, 6% - on Kazakhstan. Also in the top 10 buyers of Russian products are Egypt (5.1%), Belarus (4%), Ukraine (2.5%), Uzbekistan (2.3%) and Azerbaijan (2%). In 2020, the export of agricultural products amounted to $30.5 billion compared to $25.6 billion in 2019.

According to Agroexport, the export of grain during the reporting period increased by 10% and reached $9.4 billion, oil and fat products - by 49% to $6.2 billion, supplies of meat and dairy products increased by 30% to $1.3 billion. Exports of fish and seafood increased by 29% to over $6 billion, food and processing products by 11% to $4.145 billion. Exports of other agricultural products increased by 11% to $4 billion.

Most significantly - by 44% in annual terms, to almost $ 4.2 billion - to increase supplies to the EU. Turkey increased purchases by 36% to $3.75 billion, exports of agricultural products from Russia to China decreased by 11% to $3.2 billion, shipments to South Korea increased by 42% to $2.2 billion, to Kazakhstan - by 23% to $3.2 billion. $1.9 billion, follows from the review.

Vice-President of the Russian Grain Union Alexander Korbut noted that now export prices have increased by 35% compared to the same period last year. According to him, the export record is primarily due to this. “Now Russia is trying to “break away” from the high cost of food on the world market so as not to suffer from high inflation within the country,” he added. In addition, the growth in exports is the result of the huge work of the state and companies, which led to the opening of new markets, for example, Algeria, he said.

Business was able to effectively use the opportunities provided by the market conditions, continues Korbut. However, if the state did not regulate the grain market, exports would be about $2 billion more. A very important point is the growth in the cost of exports, he noted. “We shipped a smaller volume of products than last year, but at a higher price. Business made good use of the price situation, despite various difficulties,” Korbut commented.

In his opinion, in 2022, world prices will not decrease significantly, and most likely will remain at the same level. “I believe that we have moved to a new price level that will hold for several years until all problems with the pandemic subside. The reason for this is that global inflation of assets stimulates a stable interest in the export of raw materials, and a significant part of our products are raw materials,” says Korbut. He noted that, perhaps, Russia will be able to maintain these parameters, if there are resources for export. “The cost of production in almost all industries will increase by 15-30%. Selling cheap is no longer possible. Active export requires active production,” Korbut concluded.

Interest in the foodtech segment in Russia will grow 

The day before, President Vladimir Putin , speaking at the VTB Capital investment forum “Russia Calling!”, drew the attention of the government and heads of regions to the need to increase food production.