Agriculture in Russia

Russia’s Greenhouse Vegetable Production Grows by 24%

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According to the operational data of the regional agro-industrial complex management bodies, as of June 10, 2020, 604,600 MT of vegetables were harvested in winter greenhouses, which is 24% more than in the same period of 2019 (487,500 MT). Out of that, greenhouse cucumbers account for 406,200 MT (+22.5%) and tomatoes for 188,000 MT (+26.9%).

Traditionally, the Lipetsk, Moscow, Volgograd, Kaluga, Stavropol, and Krasnodar regions are leaders in the protected cultivation of vegetables.

The Russian Ministry of Agriculture is systematically working to improve state support and regulations for the agricultural market in order to increase the country’s agricultural production, meet its domestic needs, and develop its export potential.

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Russia Considering Reduction of VAT on Fruit

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The Russian Ministry of Agriculture has proposed the introduction of tax incentives for Russian fruit producers. According to the head of the Ministry of Agriculture, Alexander Tkachev, the reduction of VAT by eight percentage points would reduce the flow of imported fruit into Russia. According to the Ministry, agricultural product prices have every chance of falling by more than 15% by the end of September, and “in five years we could be able to stop the import of basic fruits, like apples, pears and grapes.”

Currently Russia buys several varieties of seasonal grapes from the former USSR republic of Uzbekistan, as well as in Latin America (Chile and Argentina). The purchase of apples is made in Serbia, Moldova and Belarus. Pears on Russian shelves come mostly from Lebanon, Morocco and Turkey. In the first six months of 2017, the country was supplied with about 500,000 MT of apples, which is 30% less than in the same period last year.

Russians are now consuming fewer imported fruits and vegetables, according to the Ministry of Agriculture. In fact, after the ban on the import of agricultural products from the European Union, the share of foreign fruits delivered to Russia declined by more than 50%, while the acreage in the country has increased by more than 40% over the last two harvesting seasons.

According to statistics from the Ministry of Agriculture, in 2016, a total of 14,600 hectares of new plantations were set up. In the same year, the Russian authorities allocated about 2.2 billion roubles for investment projects aimed at expanding the acreage. The cost of setting up one hectare can vary from 400 thousand to 3.5 million roubles, depending on the terrain and varieties planted. In 2017, the area of ​​new plantations will reach 15,600 hectares.

The potential to reduce prices for fruit and vegetable products in Russia in the coming months is about 15%, according to the authors of the report “Inflationary picture in July”. In the summer months, vegetables and fruits have already become 7.5% cheaper.

www.freshplaza.com

By 2020, Russia may fully provide itself with agricultural products

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By 2020, Russia may fully provide itself with fruit and veg of own production, said Alexander Tkachev, Russian Agriculture Minister, at a meeting of G20 agriculture ministers in China. The Russian Federation, according to him, will only import citrus and exotic fruits that cannot be grown in the country.

Alexander Tkachev informed his colleagues that in recent years, due to state support, the Russian agricultural sector has achieved great results. Last year, for the first time, the volumes of agricultural production in Russia exceeded $76 billion, which is 17% more than the previous year.

Last year, Russia exported agricultural products and foodstuffs for more than $16 billion, which is 5 times more than 10 years ago.

www.retailer.ru

New agriculture minister is appointed to boost food production in Russia

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Alexander Tkachev was appointed new Russian agricultural minister. Tkachev is to strengthen food production after Russia reacted to Western sanctions by banning food imports from the EU and US.

“We need to fill our market with our own products, the products of domestic producers, and we need to do it quickly, to ease pressure on the food market, decrease prices and so on,” Putin said at a meeting announcing Tkachev’s appointment. The 54-year-old minister replaces Nikolai Fyodorov, who was being moved to an advisory role in the Kremlin.

Russia banned Western food imports until August 2015 after the European Union and United States accused it of supporting separatist rebels in eastern Ukraine and subsequently imposed sanctions.

Putin said the food ban was a good opportunity to improve Russia’s agricultural industry. However, domestic producers had neither the capacity nor the right quality to replace food from abroad. This caused an increase in food prices.

Moscow is now pinning its hopes on Tkachev, who has been serving as the governor of Krasnodar since 2001. The region produces nearly 12 million tons of wheat every year, contributing more than 10 percent to Russia’s wheat exports.

www.dw.de