Russian Agriculture

In 2016, record results were achieved in almost all sectors of agribusiness. In total, the agriculture growth is estimated to be at least 4%. Thus, the gross yield of grain increased by 15.6%, production of livestock and poultry meat – by 4.7%, the catch of aquatic biological resources – 5%. As for the production of vegetables, sugar beet production showed the maximum growth – 34%. For the first time, local apple production grew by 6%.

The amount of agricultural credits for seasonal works by Rosselkhozbank increased by nearly 44% in 2016 and amounted to more than 242 billion rubles. The total amount of agricultural credits by Rosselkhozbank amounted to more than 1.171 trillion rubles.

The total grain yield increased by 13% compare to 2015: leguminous crop grew by 28.2%, wheat  – by 17% , corn – by 7.1%, rice – by 6.5%. Soy harvest increased by 14%, that is the record high since 1991.

By the end of 2016, the meat market stabilized and grew. Meat production increased by 5.1%: pork production – by 9.7%, poultry – by 3.5%. For the first time, production beef market grew, the production growth was 0.6%.

The import of meat fell by 17.5%, including pork – by 14.3%, poultry – by 21.6%, beef – by 17.5%. Export of Russian meat grew by 55.8% (high record): for poultry and beef – by 42.9%, and it doubled for pork.

Active development of pig industry allowed Russia to become the 5th biggest pork producer in worldwide.

In 2016, Russian fishermen catch increased by 4.7% and exceeded 4.4 million MT. Catches grew in the Far East (+ 8%), the Baltic (+ 12.3%) and the Azov-Black Sea (+ 7%) basins. .

Vegetables production remained almost at the same as last year (-0.52%). Imports decreased by 25%.

In 2016, 160 hectares of modern greenhouses were built in Russia. That means 100,000 MT more of cucumbers and tomatoes.

Investments in fruit production require a minimum of 10-12 years to see some results. Nevertheless, apple production in Russia increased by 6%, as the harvest of pome fruits in general. The import of apples fell by a record 49%.

www.agroinfo.com

During his annual end-of-year press conference, President Putin said the Russian agricultural production increased by at least four per cent in 2016. “Agriculture is experiencing a significant increase. Last year, it was an increase of 2.6 per cent, and this year it appears as if it will be even more than the predicted 3.2 per cent, it will be at least four per cent,” according to Putin. Putin said this trend should be continued in coming years.

Remembering the high inflation in Russia in 2016, Putin said this was “partially to blame on the so-called import substitutes in agriculture.” “Some disproportions arise on the market. Not everyone was able to replace import by own production,” he said. “This year, agriculture will experience a good dynamic. That is why inflation will look completely different,” he continued.

The Russian wheat harvest will amount to more than 119 million tonnes for 2016, according to Putin. National support for the agricultural sector will reach 216 billion rouble in 2017 (compared 215 billion rouble in 2016), Putin said.

Putin said the harvest had never before been this high in the recent history of Russia. “During the Soviet days, we had exemplary harvests in the 1970s, slightly higher than now, even. But we know that at that moment, unfortunately, and even with such large harvests, there still was not enough production of food for people and animals.”

“Today’s performances and the changes in the agricultural sector, show that the result we have achieved is exceptionally unique, and allows for very good possibilities for the further development of Russian agriculture,” Putin continued. He also said that higher sales in the agricultural sector would stimulate the demand for agricultural machines. “I am certain that if the farmers’ incomes increase, demand [for machines] will increase. That will also support the construction of agricultural machines,” Putin concluded.

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