They switch to “light” livestock farming and soybeans. Ulyanovsk agro-industrial complex went into negative territory

The index of agricultural production in farms of all categories in the Ulyanovsk region in the first quarter of 2024 was below the average for RUSSIA (101.2%) and the Volga Federal District (100.6%). Our farmers, compared to last year, sold almost 20% less grain and legumes, livestock and poultry in live weight, and vegetables. The volume of sales of potatoes and MILK increased slightly.

According to Ulyanovskstat data as of May 1, the situation improved slightly in April. The farmers themselves explain these figures by “seasonal reasons”: according to them, the production and sales volumes of milk and MEAT have non-critical fluctuations throughout the year. But sales of grain and legumes fell the most - the result of no record harvests for the last two, an oversupply on the market and, accordingly, low prices.

Milked the cows

According to the results of the first quarter of 2024, cattle production (in live weight) in the Ulyanovsk region amounted to 1.6 thousand tons - 30.6% higher than last year (second place in the Volga Federal District in terms of growth rates). Also, albeit slightly, milk production increased in all categories of farms - it amounted to 45.1 thousand tons (100.1%). In agricultural organizations, this figure increased by 5.8% and amounted to 26.1 thousand tons.

In the first quarter, 1,796 kilograms of milk were produced per cow (plus 7.4% or 123 kilograms by the same period in 2023).

However, the number of animals in the region is falling. As of April 1, 2024, farms of all categories (including subsidiary farms that are not on an independent balance sheet) had 93.2 thousand animals (93.3% compared to last year). Of these, cows - 37.2 thousand (93.7%), pigs - 200.4 (97.6%), sheep and goats - 52.2 thousand (84.8%).

The ex-director of the Agency for Rural Development of the Ulyanovsk Region, the HEAD of a company engaged in the supply of agricultural equipment, Ruslan Kantemirov, recalls that livestock farming in the region for many years fell dramatically and eventually almost disappeared. This applies to both production and the private sector.

– The situation is the same in Samara and Saratov – farmers abandoned livestock farming. There were several reasons - lack of investment, serious large-scale government support programs, and so on. As a result, the real livestock farms that are afloat in our region today can be counted on one hand. These are the “big three” - “Vozrozhdenie” of Vadim Martynov, “Agroinvest” (part of the Myasnikovs’ holding “Prominvest” in the Novospassky district) and “Agro-Gulyushevo” of the Mordovian investor. Plus 7-8 smaller farms. As a result, some regions of Tatarstan (and there are more than 40 of them) produce more livestock products than the entire Ulyanovsk region,” says Kantemirov.

Last year, the price of milk fell sharply, but now it has gone up and become “acceptable” due to cheaper feed and grain. It has become more profitable to engage in livestock farming - hence the growth recorded by statistics. In general, this industry is very difficult in terms of capitalization: in order to build a farm or expand an existing farm, very large investments are needed . Loans are expensive and costs are difficult to recoup.

– Many farmers are thinking about different types of processing of their products, for example, opening workshops for the production of oil. Plus they are switching to “light” livestock farming. For example, one of the Kuzovatov farmers began breeding bulls. He did not sell grain for 6 rubles - he “passes” it through the cattle. As a result, the cost of grain rises to 20 rubles,” explains Kantemirov.

The state helps livestock breeders. In 2024, agricultural producers who did not allow a reduction in the number of cows last year will receive a subsidy to reimburse part of the costs associated with the production of cow's milk. Subsidies will be allocated per 1 kilogram of milk sold and/or shipped for in-house processing. Currently, 28 livestock farms are claiming them.

– Yes, government support is growing, but the market is cutting off much more. We talked about allocating an additional billion from the budget for Ulyanovsk agricultural producers. But in order to make up for what the market “ate”, we need 20 billion - 20 times more, says Ruslan Kantemirov.

Even though the grain won't grow

For plant growers, the situation is radically different. Now they are “knocked down” due to low grain prices (they are practically equal to production costs), increased EXPORT duties on wheat and other factors. There is no need to talk about any development in such a situation.

Farmers are trying to adapt: ​​they are changing the structure of crop rotation to more marginal crops. For example, this year in the Ulyanovsk region they planted a lot of soybeans, peas, lentils, flax and even hemp - “exotic” crops for the region. But another problem emerged - receiving subsidies.

According to Alexey Yakushev, a farmer, father of many children, and producer of Novichok oil, most of his colleagues did not receive government support due to difficulties in paperwork. Let us remind you that from the beginning of 2024 the requirements for the provision of subsidies have changed: now all registration takes place in the “Electronic Budget” system. Acceptance of applications, signing of agreements, formation of selection protocols and the selection itself take place online , in a special program. The regional Ministry of Agriculture expressed concerns that because of this, not everyone will receive support, because many Ulyanovsk farmers are “three in one”: a manager, a chief accountant, and an employee.

– For one of the subsidies, they refused to pre-check the documents that we filled out according to the new rules for the first time. In the end, they found some minor errors and rejected it. And this was state support promised by the President of the Russian Federation. After the introduction of new export duties, we were told that what the state takes away, it will return in the form of subsidies - two rubles for every kilogram. In the end we were left with nothing. For the second, per-hectare, subsidy, the program counted one page of documents twice and in the end it also received a refusal. It feels like all this is being done on purpose. It got to the point that farmers began to refuse to submit applications because they were sure that they would not be given anything, unlike holding companies,” says Yakushev.

The farmer planned to complete the base and open a new grain processing plant. As a result, he no longer thinks about modernization:

– We do not develop, but survive. Those who have loans are already running away from banks. Declared low-interest loans are rarely approved by anyone; in fact, practically nothing of what the Ulyanovsk Ministry of Agriculture declares is done. This is killing farmers, and eventually it will kill the village.

Ruslan Kantemirov also believes that today small farms are “coming to an end”: large farms will slowly “eat them up.” Until the situation changes radically, grain will not be sold for export and its price will not increase. Perhaps the weather factor will play a role this year:

– This spring, regions of Russia froze very hard, crops suffered. And now there is a drought - the southern regions, Crimea, where harvesting is already beginning, are dry. So, fortunately for farmers, there will not be record harvests this time. Mexico and America are also drying up, which could lead to an increase in world grain prices.

This year, according to Kantemirov’s forecasts, the grain harvest could range from 1.5 million tons, with the region’s demand being 800 thousand tons.

We are waiting for 200+

What you definitely don’t have to worry about for now is the chickens. Manufacturers do not predict a shortage of chicken, but the price will rise. According to the results of the first quarter of this year, the volume of egg production in the Ulyanovsk region increased by 6.7% and amounted to 49.1 million pieces.

State support is provided for poultry enterprises - subsidies to reimburse part of the costs in connection with the production of chicken eggs; purchasing hatching eggs; young poultry, technological equipment and construction materials (up to 50% of costs), as well as financial support.

– In general, the situation is stable, we are maintaining volumes. Prices have gone up seasonally: now chicken costs 185-190 rubles per kilogram (cost price - 140-150 rubles). But in June there will be a season of up to 200+ rubles per kilogram. This is an expected increase in price: the cost of foreign equipment has increased, wages in poultry farms have risen, and the cost of production has become higher. Yes, grain has become more accessible, but I won’t say that it is cheap: it sells for 8-10 rubles per kilogram. “Cheap for us is 5 rubles,” summarizes the head of the EcoFermaRus company, Nikita Konovalov.