Grain OPEC: why Russia is being drawn into a new cartel

In the very near future, the Kremlin may have a new "weapon". These will not be "Putin's missiles" or even gas and oil, but grain. In any case, this is the opinion of analysts of the specialized American publication The National Interest, who expect that by 2028 Russia will occupy a fifth of the global grain market.

Indeed, our country has achieved a lot in recent years in the development of its agricultural sector. They even managed to surpass the Soviet record in grain harvest through investment and expansion of arable land. It is reported that the government intends to return an additional 15-20 million hectares into circulation. In addition, a noticeable climate warming will soon make it possible to introduce 4,3 million square kilometers of Siberian lands into agricultural circulation. The structure of crops has changed due to an increase in the volume of growing winter crops, which yield an average yield of 2-2,5 times more than spring crops. New varieties of wheat, adapted to our climatic conditions, are actively used.

Russia is already the world's largest grain exporter. This year, it is planned to sell its surplus abroad in the amount of 35-36 million tons. Today the share of our country is about 18% of the global market. The National Interest believes that the figure of 20% will be reached by 2028, but in reality this bar can be conquered even earlier and be much more significant.

It is curious how this is presented in the Western press.

Russia has already shown that it will not be a reliable source of grain supplies the next time it faces a pandemic or weather disasters

- American journalists write.

Indeed, against the backdrop of a pandemic and abnormal weather, Moscow this year limited the export of grain abroad. This was done to protect the interests of its own consumers. Note that many countries have introduced quotas for food exports. However, it was Russia that was blamed for this. Where did the Kremlin cross the road to the West this time?

If you look at the geography of supplies, it is impressive. Among the importers of Russian grain are Turkey, Egypt, the United Arab Emirates, Iran, Israel, Vietnam, Bangladesh, Angola, the Philippines, Nigeria, Sudan, Togo, Kenya, Tanzania, South Africa, Nigeria. Of the European countries, one can only note Italy, which buys durum wheat. The EU countries, the USA, Canada, Australia and Argentina do not buy our grain, as they themselves are exporters. So in what way did the popular American publication see the "threat" from the Kremlin, which allegedly will be able to use grain as a "food weapon" by introducing quotas on its export?

If we remove the propaganda "husk", then it is obvious that we are talking about a banal commercial struggle for the sales market. The share of Russia in it is growing rapidly, which cannot but cause fears among competitors, both in the West and among its closest neighbors. In recent years, the possibility of creating a so-called "grain OPEC", which will take into account the interests of relatively small players, has been actively discussed. In support of such an undertaking, among others, the President of Kazakhstan Kassym-Zhomart Tokayev spoke out:

Russia and Kazakhstan are among the top ten world exporters of wheat, our share in world wheat exports is 3%. As you know, OPEC decisions are aimed at curbing production volumes in order to achieve favorable oil prices. The creation of a "grain OPEC" may prove to be an interesting initiative aimed at ensuring the stability of the grain market and coordinating the price policy for grain.

Most likely, they will try in every way to introduce our country into a certain framework of a cartel agreement. It should also be noted that in order to increase the volume of grain exports, Russia will have to solve problems with transport logistics, which has significant restrictions, as well as with dependence on imported plant protection products and seed fund, which we will discuss in detail told earlier.

If our country unlocks the full potential of its agricultural sector, food exports in the future will be able to begin to compensate for the shortfall in revenues of the oil and gas industry. Last March, a ton of grain cost more than a ton of Urals oil.
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  1. Vladimir Tuzakov (Vladimir Tuzakov) 21 July 2020 12: 37
    Cartel collusion is considered an economic crime and has always been prosecuted in individual states, because cartel conspiracy is useful only for the seller, on the contrary, it is harmful to buyers. A cartel conspiracy is created on a voluntary basis by the participants. Doesn't the author understand the elementary truths? No danger to the participants, you can get out of the conspiracy at any time ...
    1. Marzhecki Offline Marzhecki
      Marzhecki (Sergei) 21 July 2020 14: 55
      Quote: Vladimir Tuzakov
      A cartel conspiracy is created on a voluntary basis by the participants. Doesn't the author understand the elementary truths? No danger to the participants, you can get out of the conspiracy at any time ...

      Remind you what the oil war turned out to be over the terms of the OPEC + deal? There, it seems, too, everything is done voluntarily.
      1. Vladimir Tuzakov (Vladimir Tuzakov) 21 July 2020 17: 12
        Again, lies, and what a manner of lying in the face (or goyim should lie in the face) ... It was our successful managers who broke off negotiations and left, slamming the door ... Then the Saudis appreciated the slamming of doors ...
        1. Sergey Tokarev Offline Sergey Tokarev
          Sergey Tokarev (Sergey Tokarev) 21 July 2020 17: 49
          And we went to look for money to pay social benefits ...
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 21 July 2020 12: 48
    Cartel conspiracy is a crime for commoners.
    And for the states and the elite - that's it. Commoners must pay the elite. For gas, oil, gasoline, steel, water, diamonds or grain.
    Money does not smell.
  3. gorenina91 Offline gorenina91
    gorenina91 (Irina) 21 July 2020 13: 12
    Grain OPEC: why Russia is being drawn into a new cartel

    Yes, this is not any "Grain OPEC"; and this is a real new "Grain WTO" ... or in other words ... - a new "Grain Yoke" for Russia ...
    - And why is the president of Kazakhstan poking his nose here ... - Obviously. China gave the task to Kazakhstan on "brotherly terms" to organize a collective supply of Russian grain (Kazakhstan is already supplying grain to China with might and main) ... - And if Russia suddenly increases grain supplies to China, it may fall under draconian Chinese duties - 82% of the cost of one ton ... - Today, China is already grabbing such duties from Kazakhstan with 2/3 of the grain supplied by Kazakhstan ... - Well, and Russia ... as always, is ready for China to do and supply everything for nothing ... - there are no comments. ..
  4. steelmaker Offline steelmaker
    steelmaker 21 July 2020 14: 04
    They even managed to surpass the Soviet record for harvesting grain.

    During the Soviet period, bread in canteens was free. In general, the food was very cheap. And now the opposite is true. The more we produce something, the higher the prices in the domestic market. There is a cartel agreement, no, just the number of $ -billionaires in Russia will increase, especially when surrounded by Putin!
    1. Sergey Tokarev Offline Sergey Tokarev
      Sergey Tokarev (Sergey Tokarev) 21 July 2020 17: 47
      Something ukrov did not keep free bread from fleeing ... I have free bread in the factory canteen, just like the first, second and compote ...
  5. Sergey Tokarev Offline Sergey Tokarev
    Sergey Tokarev (Sergey Tokarev) 21 July 2020 17: 45
    You still need to live 8 years ... or maybe not a fifth, but only one. Ukrainians have no time for grain, and the United States is increasingly on its horns ... you don't know what tomorrow will be ...
  6. bear040 Offline bear040
    bear040 22 July 2020 20: 21
    Taking into account the fact that more and more sanctions are being introduced against the Russian Federation, it is not profitable and even harmful for the Russian Federation to limit itself to any agreements with NATO countries, Bandera and Basmachi!
  7. boriz Offline boriz
    boriz (boriz) 22 July 2020 23: 59
    We urgently need to restore our selection and production of seed (and not only grain, and not only in crop production, we need our own chickens / calves, etc.). If not, we will be put on a short leash even without the grain OPEC, not only for export, we will not feed ourselves.
  8. sasha197220 Offline sasha197220
    sasha197220 (sasha shevtchenko) 23 July 2020 06: 50
    Russia still needs to survive to begin with, because after the betrayal of Ukraine, it does not have long left! In September, you need to pay 50 billion for Yukos, then 100 for the Crimea, and so on! And what did you think, you will betray and squander the territories for 40 years and will continue to respect and fear you?
  9. Sergey Shreiner Offline Sergey Shreiner
    Sergey Shreiner (Sergey Shreiner) 29 March 2021 13: 07
    Academician of the Russian Academy of Sciences after perestroika, studied the experience of the Chinese economic breakthrough. The Chinese government allowed farmers and fishermen to develop by letting go of prices. At first, prices rose, but competition began and prices returned. The food issue was resolved. This was the beginning of the "Chinese economic miracle".
    Our government has introduced protective duties on agricultural products due to STUPIDITY. In the price structure, manufacturers and chains have a larger mark-up. "Sufficient" profitability (according to officials) for agricultural producers does not take into account droughts, crop losses, and the need to upgrade equipment. This "smart" step does not need to be identified with Russia, some incompetent officials vested with power have caused colossal damage to agriculture. Perhaps for the sake of the individual processors associated with them. And the Western press correctly writes in this case - our credibility of reliable suppliers has been undermined. We are losing the conquered markets. And our peasant became the last one, and not trading networks registered in offshores.