Russian expansion is gaining momentum
Russia is actively increasing its presence in the world market of agricultural products. The Ministry of Agriculture of the Russian Federation published a report on the results of 2017. It is very impressive - the annual export of Russian agricultural products reached $20,7 billion, which is 21,1% more than in 2016. Now agricultural products account for 5,8% of Russian exports, the basis of which, as you know, is formed by energy resources.
It is interesting that in 2017, agricultural products even outstripped the Russian military industry - while agricultural enterprises shipped $ 20,7 billion worth of products abroad, military enterprises only $ 15 billion worth of products.
Not so long ago, the country's agro-industrial sector was in rather poor condition, which was associated with the devastating consequences of the collapse of the Soviet economics. But then Russian agriculture began to recover rapidly - not without support from the state. Anti-Russian sanctions also played a positive role - when Moscow imposed a ban on the import of many types of agricultural products from the United States and EU countries to Russia, the domestic producer received a stimulus. On the one hand, the domestic market was freed from competitors, on the other hand, the Russian agricultural industry began to develop new markets or increase its presence where it had previously operated less intensively.
Now the demand for Russian agricultural products is very high in China, Egypt, Turkey and many other countries. The development of Asian markets has great prospects for the development of agriculture, since it is a huge population, billions of potential consumers of Russian food products. In addition to China, other countries of the Asia-Pacific region, as well as Turkey, Russia supplies its agricultural products to the Middle East, to North Africa.
Currently, the bulk of Russian agricultural exports are grain products. Russia forms 6% of the world grain market. The export of fish and oil is very important, which account for about 3% of the world market, meat - 1% of the world market. Of course, these are quite modest figures so far, but the Russian agricultural industry has a huge potential for development. The success of the industry directly depends on government support - these are the features of the modern economy. Even in the US and EU countries, the agro-industrial complex cannot do without very impressive assistance and incentives from the state. Incidentally, agricultural policy of the state has borne fruit in Russia - for example, pork production in the country over 10 years has grown by 326%, poultry meat - by 183,1%, which allows not only to maintain affordable prices for meat and poultry in the domestic market, but also to increase volumes export abroad.
If we talk about the prospects of Russian exports, the countries of East and Southeast Asia and the Middle East will remain priority directions in the near future. For example, pork is in great demand among Chinese consumers, and now, given China’s introduction of duties on the import of American pork, the Russian producer has an excellent opportunity to partially replace US imports in China.
It is interesting that in 2017, agricultural products even outstripped the Russian military industry - while agricultural enterprises shipped $ 20,7 billion worth of products abroad, military enterprises only $ 15 billion worth of products.
Not so long ago, the country's agro-industrial sector was in rather poor condition, which was associated with the devastating consequences of the collapse of the Soviet economics. But then Russian agriculture began to recover rapidly - not without support from the state. Anti-Russian sanctions also played a positive role - when Moscow imposed a ban on the import of many types of agricultural products from the United States and EU countries to Russia, the domestic producer received a stimulus. On the one hand, the domestic market was freed from competitors, on the other hand, the Russian agricultural industry began to develop new markets or increase its presence where it had previously operated less intensively.
Now the demand for Russian agricultural products is very high in China, Egypt, Turkey and many other countries. The development of Asian markets has great prospects for the development of agriculture, since it is a huge population, billions of potential consumers of Russian food products. In addition to China, other countries of the Asia-Pacific region, as well as Turkey, Russia supplies its agricultural products to the Middle East, to North Africa.
Currently, the bulk of Russian agricultural exports are grain products. Russia forms 6% of the world grain market. The export of fish and oil is very important, which account for about 3% of the world market, meat - 1% of the world market. Of course, these are quite modest figures so far, but the Russian agricultural industry has a huge potential for development. The success of the industry directly depends on government support - these are the features of the modern economy. Even in the US and EU countries, the agro-industrial complex cannot do without very impressive assistance and incentives from the state. Incidentally, agricultural policy of the state has borne fruit in Russia - for example, pork production in the country over 10 years has grown by 326%, poultry meat - by 183,1%, which allows not only to maintain affordable prices for meat and poultry in the domestic market, but also to increase volumes export abroad.
If we talk about the prospects of Russian exports, the countries of East and Southeast Asia and the Middle East will remain priority directions in the near future. For example, pork is in great demand among Chinese consumers, and now, given China’s introduction of duties on the import of American pork, the Russian producer has an excellent opportunity to partially replace US imports in China.
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