Agriculture in Russia

Main article: Russian economy

Market segments

Cereals

Main article: Grain crops (Russian market)

Livestock production

• Animal husbandry in Russia
• Animal labelling

Gardening in Russia

Main article: Gardening in Russia

Beekeeping in Russia

Main article: Beekeeping in Russia

Reindeer breeding

Main article: Reindeer husbandry in Russia

Milk production

• Milk production and sales in Russia
• Labeling of dairy products

Fruits, vegetables and berries

Main article: Fruits, vegetables and berries (Russian market)

• Grapes (Russian market)

Mushrooms

• Mushrooms (Russian market)

Konoplya

• Konoplya

Cotton

• Cotton (Russian market)

Hunting and fishing

Main article: Hunting and fishing in Russia

Agricultural machinery

Main article: Agricultural machinery in Russia

Mineral fertilizers

Main article: Mineral fertilizers (Russian market)

Pesticides

Main article: Pesticides (Russian market)

Export

• Grain exports and imports in Russia

Digitalization in the agro-industrial complex of Russia

Separate articles are devoted to the use and development of information technologies in agriculture in Russia:

• IT in the agro-industrial complex of Russia
• Artificial intelligence in agriculture (agro-industrial complex)
• Internet of Things in Agriculture (IoTAg)

Land (state program)

Main article: Earth (state program)

2024

GC "Azot" for ₽430 million launched a plant for the production of seeds in the Kemerovo region

In October 2024, the Azot group of companies commissioned the first seed production plant in the Kemerovo region. Investments in the project amounted to ₽430 million. The new enterprise is located in the village of Zvezdny, Kemerovo District. Read more here

Reduction in crop crops by 1.2% to 80.185 million hectares

On August 6, 2024, it became known that the area of ​ ​ crops in Russia decreased by 1.2% compared to 2023. According to Rosstat, in 2024 agricultural year, sown areas in farms of all categories amounted to 80.185 million hectares, which is 968 thousand hectares less than in 2023.

The most significant reduction affected crops of grain and leguminous crops. Their area decreased by 4% and amounted to 46.127 million hectares. In particular, wheat crops decreased by 4.2% to 28.506 million hectares, barley - by 12.9% to 6.96 million hectares, and rye - by 19.8% to 668 thousand hectares.

Sown areas have decreased in Russia

Spring grain and leguminous crops in 2024 occupied 28.614 million hectares, which is 6.9% less than in 2023. The area under spring wheat decreased by 12.4% to 12.372 million hectares, under barley - by 12.9% to 6.343 million hectares. At the same time, winter grain crops increased by 1.3% to 17.494 million hectares, including winter wheat - by 3.1% to 16.134 million hectares.

Despite an overall downward trend, some crops have shown an increase in acreage. Thus, the area under oilseeds increased by 7.1% to 18.86 million hectares. Soybean crops grew by 18.4% to 4.294 million hectares, rapeseed - by 29.3% to 2.726 million hectares, and oilseed - by 18.3% to 1.668 million hectares.

The area under sugar beet increased by 9.87% to 1.169 million hectares, technical hemp - by 36.7% to 16 thousand hectares, and flax-dolgunets - by 10.5% to 41 thousand hectares. The total area under technical crops increased by 7.4% and amounted to 20.212 million hectares.

Potatoes and vegetable crops occupied 1.582 million hectares, which is 4.2% less than in 2023. The area under potatoes decreased by 5.6% to 1.009 million hectares, and under outdoor vegetables - by 2.2% to 466 million hectares. Feed crops are located on 12.263 million hectares, which is 3.1% less than in 2023.

In the structure of sown areas of 2024, the share of grain and leguminous crops amounted to 57.5% (59.2% in 2023), industrial crops - 25.2% (23.2%), potatoes and vegetable vegetables - 2% (at the level of 2023), feed - 15.3% (15.6%). The share of winter wheat rose from 19.3% to 20.1%, while the share of all wheat decreased from 36.7% to 35.6%. ^[1]

The national project "Technological support of food security" with a budget of 1 trillion rubles starts in Russia

The Russian government has begun preparing a new large-scale national project "Technological Support for Food Security." This was announced in March 2024 by Deputy Prime Minister Victoria Abramchenko, speaking in the State Duma. Read more here.

2023

Named the top 10 largest agricultural holdings in Russia. Their total revenue for the year increased by 16.2% to ₽1,6 trillion

The total revenue of the top 10 largest agricultural holdings in Russia in 2023 increased by 16.2%, reaching ₽1,6 trillion. These data were presented in early September 2024 by the research company INFOLine,

The report notes that the largest companies in the country's agro-industrial complex continue to show steady growth in financial indicators, despite difficult economic conditions. Rusagro Group of Companies remained the leader among Russian agricultural holdings in 2023, whose revenue amounted to ₽277,3 billion, which is 15% more compared to 2022. The second place was taken by APH Miratorg with revenue of ₽256,8 billion, which increased by 24%. The Cherkizovo group closes the top three, which showed revenue growth of 23%, reaching ₽226,7 billion.

Named the top 10 largest agricultural holdings in Russia. Their total revenue increased by 16.2%

An analysis of the investment plans of the largest agricultural holdings shows that companies continue to actively invest both in the development of their raw materials base and in the expansion of processing capacities. Thus, the Cherkizovo Group invests significantly in expanding the production of poultry meat in the Altai Territory, as well as in the modernization of feed mills in the Moscow Region. At the same time, Agrocomplex named after Tkachev plans to increase the volume of investments in 2024 to ₽10,7 billion, directing funds to modernize the milk processing plant and reconstruct the sugar factory in the Krasnodar Territory.^[2]

Agricultural output growth by 33.2%

Production agricultural in Russia the period from 2014 to 2023 increased by 33.2%, reported Ministry of Agriculture of the Russian Federation in early August 2024. This increase occurred against the backdrop of the food embargo imposed ten years ago by presidential decree of August 6, 2014.

Russian Minister of Agriculture Oksana Lut noted that over the past decade, Russia has formed one of the most competitive, flexible and technological agricultural markets in the world.

Russian companies are able to produce almost everything that is necessary and adapt to any external conditions, "Oksana Lut emphasized.

Agricultural production in the Russian Federation has grown by a third over 10 years

According to the Ministry of Agriculture, growth was observed in all key sectors of the agro-industrial complex. In crop production, grain harvest increased from 92.4 million tons to almost 150 million tons, and the production of oilseeds increased 2.3 times - from 13.2 million to 29.9 million tons. The potato harvest in 2023 reached its maximum over the past 30 years - 8.6 million tons, which is 1.6 times higher than in 2013.

In animal husbandry, livestock and poultry production increased by 35.6% - from 12.2 million to 16.53 million tons. Pork production showed especially noticeable growth, where production volumes increased by almost 1.7 times. The dairy industry also showed positive dynamics, increasing milk production by 13.2% to 33.8 million tons.

The food industry in Russia has also shown significant progress. The production of vegetable oil increased 2.5 times - to 9.8 million tons, the production of meat products increased almost 1.8 times - to 9.8 million tons. Cheese making demonstrated especially impressive results: cheese production during this period almost doubled, reaching 801 thousand tons in 2023.

Over the decade of the pro-embargo, Russia not only achieved self-sufficiency in many indicators of the food sector, but also became a net exporter of food. The country's agricultural exports increased 2.6 times, reaching $43.5 billion in 2023 against $17.1 billion in 2013.^[3]

Named the largest agricultural holdings in Russia

On June 24, 2024, the consulting company BEFL announced a new rating of the largest owners of agricultural land in Russia. According to estimates, their total land fund reached 18.5 million hectares, which is 1.1 million hectares more than a year earlier.

In 2023, a key rate increase increased the price of leveraged financing, the study said. Against the backdrop of a deteriorating geopolitical situation, the cost of production continues to grow. An increase in prices for fertilizers, chemical plant protection products, imported and new domestic equipment and spare parts was recorded. In addition, the industry has a shortage of personnel, especially qualified ones.

BEFL announces new rating of the largest owners of agricultural land in Russia

As of 2023, as noted in the review, the area of ​ ​ agricultural land in Russia amounted to 379.1 million hectares - about 6% less compared to the end of 2005. Ownership share

states decreased by 8.8%, being at around 251.5 million hectares. At the same time, the share of property of individuals during the period under review decreased from 120.7 million hectares to 104.1 million hectares, that is, by 13.8%. The area of ​ ​ agricultural land owned by legal entities increased by 371.4% - to 23.6 million hectares.

The published rating of the largest agricultural holdings in Russia includes 77 companies. In terms of the total area of ​ ​ the land fund, the first ten showed an increase of 158 thousand hectares on an annualized basis, and this is almost entirely due to the first five enterprises. Overall, the Top 10 looks like this:

1. "Miratorg" - 1221 thousand hectares;
2. "Agrocomplex" - 1126 thousand hectares;
3. "Prodimex" - 900 thousand hectares;
4. Rusagro - 689 thousand hectares;
5. "Econiva" - 632 thousand hectares;
6. "Steppe" + RZ "Agro" - 578 thousand hectares;
7. "BIO-TON" - 550 thousand hectares;
8. Agroinvest Group - 451 thousand hectares;
9. "Avangard-Agro" - 444 thousand hectares;
10. Sibagro - 411 thousand hectares.^[4]

Growth in the profit of egg producers by 2.5 times

At the end of 2023, the profit of the largest egg producers in Russia amounted to 15.5 billion rubles. This is about 2.5 times more than in the previous year, when the figure was 6.1 billion rubles. Such a significant increase was facilitated by an increase in consumer prices for food eggs by 62%, as stated in a study published on April 9, 2024.

According to Forbes, referring to the financial statements of market participants, in 2023, the growth in net profit for egg producers in Russia ranged from 33% to 13 times in relation to 2022. The released data covers 10 leading enterprises. These are the Tavros group (controls four poultry farms), Sinyavinskaya Poultry Farm, Volzhanin, Roskar Poultry Farm, Okskoye, Komos Group (three poultry farms), Sverdlovskaya Poultry Farm, Yaratel Poultry Farm, Chelyabinsk Poultry Farm and RostPositivImpulse (two poultry farms). However, Yaratel Poultry Farm is legally a branch of the holding and does not disclose financial indicators.

It is noted that the most significant net profit increased at the poultry farms of the RostPositiveImpulse holding - 13 times, from 95 million rubles in 2022 to 1.24 billion rubles in 2023. At the same time, the maximum profit was shown by poultry farms included in the Tavros group - a total of 3 billion rubles. For comparison: in 2022, the figure was 326 million rubles. It is noted that the profit of these enterprises could be even higher, but in August 2023, a hotbed of bird flu was found at the Bashkirskaya poultry farm, which is why all products and chickens had to be destroyed.

The Forbes study also says that the Sverdlovskaya poultry farm showed relatively low profit growth in 2023 - approximately 33%. It belongs to the Sverdlovsk region and therefore kept prices low relative to the market average.^[5]

Growth in production of agricultural products by 2.9%

Russia increased the production of products of the agro-industrial complex (agro-industrial complex) in 2023 by 2.9%. This was announced on February 20, 2024 by the Minister agriculture of the Russian Federation Dmitry Patrushev at a meeting with the President. Russia Vladimir Putin

According to the head of the Ministry of Agriculture of the Russian Federation, in 2023 the grain harvest in the country reached 147 million tons. According to the results of 2023, meat production in Russia increased by 300 thousand tons, milk production - by 800 thousand tons. Patrushev did not give absolute figures.

Russia increased production of agro-industrial complex (agro-industrial complex) in 2023 by 2.9%

In February 2024, the Ministry of Agriculture also published data on new regions of the Russian Federation. According to the ministry, in, DPR, and LPR Zaporozhskaya Hersonskaya areas, grain yields increased by 27%. In these territories, a grain harvest of 4.9 million tons was obtained, including 3.9 million tons of wheat. In addition, 93.2 thousand tons of vegetable oil, 162.2 thousand tons of flour, 175.4 thousand tons of bread and bakery products, 19.7 thousand tons of sausage, about 94.6 thousand tons of meat and 31.4 thousand tons of dairy products were received.

According to INFOLine analysts, the remaining dependence on selection, genetic materials and technology, the lack of storage capacity has a negative impact on the development of the agro-industrial complex of the Russian Federation: the industry recorded an increase in production costs in 2023, a decrease in profitability.

Lack of access to world technologies can hinder the development of the industry as a whole, so the development of new technology within the country and its introduction into industrial production is a process that requires a large amount of resources (financial, personnel, raw materials, etc.), as well as time. Labor shortages are also an exacerbating problem, the INFOLine study reports.[6]

Agricultural profitability in Russia decreased to 18.9%

The profitability of agriculture (including subsidies) in Russia in 2023 decreased to 18.9% from 20.3% in 2022. Such data of the Deputy Minister of Agriculture RFElen Fastova cited February 5, 2024.

According to her, in 2023, the revenue of agricultural organizations amounted to almost 5 trillion rubles, which is 6.6% more than a year ago. Revenue increases within inflation, but costs grow faster, Fastova noted. At the same time, as she noted, livestock farmers feel a little better, since feed prices are low. And plant growers are worse for the same reason - because grain prices are low.

Agricultural profitability dropped to 18.9%

The Deputy Minister of Agriculture of the Russian Federation also cited statistics, according to which by the end of 2023 there were 49 thousand agricultural producers in Russia. The share of profitable farms in 2023 increased by 0.6 percentage points, to 86.7%.

Most of them are small forms, so it's difficult to say that everyone is doing well, "said the deputy head of the Ministry of Agriculture.

According to her, there is no reason to say that subsidies greatly affect the level of profitability.

The share of direct state support in the form of stimulating and compensating subsidies, which in 2024 are combined into one, is only 3% of all costs... We have low-margin industries - cattle production (cattle), sheep farming, to which we give a little more, they get 8% of the costs, in milk and sheep farming also 8%, in cattle - 6%. And our wool production is a standard unprofitable industry today, so there is also more. But in general, this is almost 3% - that in animal husbandry, that in crop production they remain from year to year, - said the deputy minister (quoted by Interfax).

She added that the budget financing of the agro-industrial complex amounted to 540 billion rubles, becoming the maximum in history.^[7]

Decrease in agricultural production by 0.3%

Russia According to the results of 2023, agricultural production increased by 0.3% (in comparable prices, excluding,, and LPR DPR) Zaporozhskaya Hersonskaya regions compared to a year earlier. This is evidenced by the data Rosstat published in early February 2024.

According to the Prime agency, citing materials from the department, the volume of agricultural production in actual prices in 2023 tentatively decreased to 8.34 trillion rubles from 8.56 trillion (minus 2.6%): in particular, crop production was produced by 4.51 trillion rubles (minus 8.9%), animal husbandry - by 3.84 trillion (an increase of 6%).

Agricultural production in Russia in 2023 increased by 0.3%

According to Rosstat estimates, the output of crop production in farms of all categories in Russia in 2023 decreased by 1.1% compared to 2022, livestock production - increased by 0.9%.

These indicators belong to farms of all categories (agricultural organizations, farmers, personal subsidiary farms). In agricultural organizations, production in 2023 increased by 0.9% against 14% in 2022. Including in crop production, a decrease of 1% was recorded (an increase of 21.1% in 2022), in animal husbandry - an increase of 3.3% (+ 5.4%). Farms cut production by 0.1% against a 21.4% rise in 2022. The production in personal subsidiary farms of the population decreased the most - by 3.2% against 1.4% a year earlier.

Interfax recalls that the highest growth rates of agricultural production were achieved in 2011 - 22.3%. In 2021, production decreased by 0.7%, in 2020 it increased by 1.3%, in 2019 - by 4.3%.

It also follows from the data of Rosstat that the share of profitable organizations in the sectors of agriculture and forestry, hunting and fish farming in January-November 2023 amounted to 79.5%, 20.5% of organizations received a loss. Data for the entire 2023 by February 2, 2024 has not yet been published.^[8]

State support for the agro-industrial complex for the year reached 544 billion rubles

State support for the agro-industrial complex of Russia in 2023 reached 544 billion rubles. The Ministry of Agriculture of the Russian Federation cited such data in January 2024.

According to Interfax, citing materials from the department, federal subsidies to Russian farmers in 2023 amounted to 170 billion rubles. In total, 170.2 billion rubles were transferred to the regions for these purposes. Thus, 99.9% of the provided funds were brought to the recipients, the Ministry of Agriculture of Russia specified. The department added that the issue of bringing state support to recipients is under the constant control of the Ministry of Agriculture.

According to the community of the department, the financing of the Russian agro-industrial complex from the state budget in 2024 will amount to 558.6 billion rubles, which is 124.4 billion rubles more than was laid down in the federal budget of the 2022 edition. The funds will be used to finance four state programs of the Russian Federation, for which the Ministry of Agriculture is responsible:

• state program for the development of the agro-industrial complex;
• state program for the integrated development of rural areas;
• federal scientific and technical program for the development of agriculture for 2017-2030;
• the state program of effective involvement in the circulation of agricultural land and the development of the reclamation complex.

The main increase in budget allocations was due to concessional lending, due to the growth of the key rate of the Central Bank of the Russian Federation to 15%. Also, the volume of subsidies for ensuring the integrated development of rural areas and for subsidies for hydro-reclamation, cultural technical, agroforestry and herbal reclamation measures has been increased, the Ministry of Agriculture said.

In accordance with the federal law of November 27, 2023 No. 540-FZ "On the federal budget for 2024 and the planning period 2025 and 2026," funding for the agro-industrial complex in subsequent years will be less than in 2024:

• for 2025 - 403.9 billion rubles (+ 79 billion rubles to the plans in the budget of the 2022 sample);
• as of 2026 - 383.8 billion rubles.^[9]

In Russia, there are 18% more producers of organic products of the agro-industrial complex

Russia In 2023, there were 18% more producers of organic products of the agro-industrial complex () AGRARIAN AND INDUSTRIAL COMPLEX than a year earlier. Their number was 177, calculated in (Roskachestvo data published on January 11, 2024).

According to the organization, 262 certificates for organic products were issued in 2022, and in 2023 the number of certificates increased by 123, reaching 385. This indicates the active development of the industry and the desire of manufacturers to meet the growing needs of consumers, according to Roskachestvo.

Among certified organic products, 53% are crop products, which indicates the widespread use of organic agriculture in Russia. 37% are processed products, and 8% are livestock, which indicates a growing interest in sustainable production of animal products.

Roskachestvo notes that from September 1, 2024, the presence of an organic certificate will become mandatory for use in labeling the terms "eco," "bio" and their derivatives, as well as "green." This will ensure transparency and quality of information for consumers and prevent unfair competition in the organic market.

To support the development of the organic sector in Russia, a strategy for the period up to 2030 was approved. The document provides for an increase in the production of organic products by 2030 to 114.5 billion rubles from 9.1 billion rubles in 2021. At the same time, the annual increase in production should reach 20.7%.

Roskachestvo adds that the growth in the number of organic producers is a positive trend, which corresponds to the increasing demand of consumers for environmentally friendly and safe food products. The increase in organic production and the development of the industry contribute to improving the health and well-being of the population.^[10]

2022

The volume of agricultural production in Russia increased by 10.2%

The output of agricultural products in Russia increased in 2022 by 10.2% (in comparable prices) in comparison with 2021. Rosstat published such data in February 2023.

According to the department's estimates, in crop production, the output of agricultural products in 2022 increased by 15.9%, and in 2021 there was a decrease of 0.7%, in animal husbandry - 2.4% (in 2021 there was no dynamics).

In agricultural organizations, production in 2022 increased by 12.8% (in 2021 there was a decrease of 0.1%), including in crop production - by 18.9% (1.2% in 2021), in animal husbandry - by 5.5% (there was also an increase of 1.3%). Farms of all categories, including farm and personal subsidiary plots, in 2022 produced products worth 8 trillion 850 billion 887 million rubles. They are in crop production - by 5 trillion 265 billion 637 million rubles, in animal husbandry - by 3 trillion 585 billion 250 million rubles.

Including in agricultural organizations, production amounted to 5 trillion 348 billion 336 million, in particular, crop products were grown for 3 trillion 016 billion 678 million rubles, livestock products were received for 2 trillion 331 billion 658 million rubles.

It is also noted that farms and individual entrepreneurs in 2022 showed an increase in production of 20.1% (1.7% in 2021).

According to Rosstat, agricultural organizations in 2022 accounted for 60.4% of agricultural products produced (59.2% in 2021), including 57.3% (55.9%) in crop production, 65% (63.8%) in animal husbandry.

The share of farmers and individual entrepreneurs rose to 16.2% from 15.4% a year earlier. They accounted for 23.3% (22.3%) of crop production, 5.7% (5.8%) of livestock production.

The share of personal subsidiary farms decreased to 23.4% from 25.4%, respectively, including crop production - to 19.4% from 21.8%, livestock - to 29.3% from 30.4%.^[11]

The share of profitable agricultural farms exceeded 90%

The share of profitable farms in the agro-industrial complex of Russia in 2022 amounted to more than 90% against 86% in 2021, according to the data of the Ministry of Agriculture, published in February 2023.

The ministry stressed that agriculture in 2022 became one of the most dynamically developing sectors of the Russian economy, demonstrating production growth of more than 10%. At the same time, in crop production, the indicator increased by almost 16%, which is due to a record harvest of grain and a number of other crops.

Despite a slight reduction in the margin in crop production against the background of a decrease in selling prices for products, profitability in the sector, taking into account state support, remains at an acceptable level, the Ministry of Agriculture says.

The ministry noted that in 2022, additional measures were largely focused on grain producers. In 2023, it is also planned to subsidize the costs of farmers for the production and sale of grain. Thus, this area, of course, retains investment attractiveness, the message emphasizes.

In February 2023, the department stressed that in recent years, many projects have been implemented in the country for the construction of modern elevator complexes, where grain is stored in a part-time form and practically does not lose in quality. Thus, the risks of partial crop loss are insignificant - the entire volume of harvested grain will be sent for processing, feed purposes or export, according to the Ministry of Agriculture.

To ensure the balance of supply in the market and the maximum profitability of crop production in 2023, it is planned to reduce the sown area under wheat, so that the yield is 80-85 million tons. This will preserve the stability of the domestic market in the interests of all participants and realize last year's record harvest.^[12]

Russia imports only 750 million food eggs per year

Rosptitsesoyuz: The volume of food egg imports is small - 750 million pieces per year. At the same time, 90% of these imports fall on Belarus and another 10% on Kazakhstan.

Low share of potato and sugar beet seeds of domestic selection

For potatoes, the share of domestic seed breeding in 2021 amounted to 8.7%, in 2022 - 6.7%, for sugar beets - 3% and 1.8%, respectively.

The government is preparing additional measures to support the agro-industrial complex

On March 6, 2022, the Government of the Russian Federation announced that it would continue to provide support measures to enterprises in the agro-industrial complex. They are necessary for the uninterrupted implementation of the sowing campaign, as well as the work of both backbone and small and medium-sized enterprises of the industry.

As Deputy Prime Minister Victoria Abramchenko noted, agreed proposals have been prepared to reimburse part of the costs of producing bread and bakery products. In addition, measures are being worked out to support the dairy industry in order to prevent an increase in consumer prices. The approval of additional subsidies for concessional loans to farmers for field work has been completed.

Field work, uninterrupted food supplies and monitoring of consumer prices are under the special control of the Government. The first measures to support the agro-industrial complex have already been taken. Additional measures, including in particularly sensitive sub-industries and areas, will be taken in the near future. Additional financing of the preferential purchase of agricultural machinery through agroleasing tools in the amount of at least 10 billion rubles is also being considered, "said Victoria Abramchenko.

The government has already allocated the first funds to support the program of concessional lending to agricultural producers in the amount of 5 billion rubles. By another Government Decree, agricultural producers received the right to a six-month deferral of payments on preferential investment loans, the term of contracts under which expires in 2022. For short-term concessional loans, the term of contracts for which also expires in 2022, it is possible to extend the loan term for another year.

Victoria Abramchenko recalled that Russia fully provides itself with food in all key areas.

Thanks to technologies, the introduction of additional agricultural land into circulation, the expansion of measures to support farmers, we traditionally fully cover not only domestic needs, but also show the export potential of our country. Despite external pressure, the Russian agro-industrial complex is showing good results and will remain one of the priority sectors for development, - said Deputy Prime Minister[13] to[14] the[15].

2021

Grain harvest in Russia fell by 10% over the year - Rosstat

Russia in 2021 collected 121.317 million tons of grain against 133.5 million tons a year earlier. Thus, there was a 10% decline, according to Rosstat data published in early March 2022.

According to the statistics of the department, the wheat harvest in Russia at the end of 2021 amounted to 76 million tons, including 53 million tons of winter wheat (in 2020 - 63.2 million tons) and 23 million tons of spring wheat (22.7 million tons in 2020).

The rye harvest amounted to 1.724 million tons against 2.738 million tons a year earlier, corn - 15.2 million tons against 13.9 million tons, barley - 17.99 million tons against 20.9 million tons.

The collection of cereal crops, with the exception of buckwheat, has decreased. Thus, 1.076 million tons of rice were harvested against 1.142 million tons, millet - 368 thousand tons against 396 thousand tons. The buckwheat harvest grew to 915 thousand tons from 892 thousand tons a year earlier. Oats harvested 3.7 million tons against 4.1 million tons in 2020, according to Rosstat data.

According to the materials of the department, published on December 29, 2021, the main share of grain (68.5%), sugar beet (90.7%) and sunflower (63.7%) was grown in agricultural organizations; potatoes (64%) and vegetables (52.1%) - in households of the population. In peasant (farm) farms, 30.3% of the total grain harvest was collected, sunflower seeds - 35.9%, sugar beet - 9.2%, vegetables - 20.7%.

According to Rosstat, agriculture ("agriculture, forestry, hunting, fishing and fish farming") and the public administration sector in 2021 were the only falling industries. Agricultural output contracted 1.3% after rising 0.2% in 2020. Overall, the economic contribution of agriculture declined for the first time since 2012. During the period of growth in 2013-2020, the output of the Russian agricultural sector increased by almost 20%, and its share in Russian GDP reached 4.5%.^[16]

The volume of M&A transactions in Russian agriculture tripled to $1 billion

The volume of mergers and acquisitions () M&A in agriculture Russia in 2021 reached $1 billion, which is three times more than a year earlier. He presented such data in mid-February 2022. Rosselkhozbank

According to Dmitry Bronnikov, Deputy Director of the Bank's Large Business Department, despite such an increase, the share of M&A transactions in the agro-industrial complex and related sectors is still a small volume of the total M&A market and is estimated at 3% per year.

According to the study, the key transactions in 2021 remained the redemption of problematic and pre-problem assets in the form of property or claims rights - such transactions accounted for about half of the total volume of transactions.

Experts also noted an increase in vertical integration: due to high inflation and rising costs, many holdings are trying to reduce risks primarily by integrating raw materials suppliers into their structures to ensure cost control. According to Dmitry Bronnikov, the main participants in the M&A market of transactions in the agro-industrial complex remain large Russian strategic investors who show the greatest interest in crop assets and infrastructure (elevators, ports, transport).

At the same time, interest in the agro-industrial complex market is growing from new investors, among whom there are, for example, representatives of metallurgy and telecommunications. They are attracted by the growth of the margin of the agro-industrial complex over the past two years, and the most interesting are crop assets, whose margin can reach 50% of revenue.

The largest deal in 2021 was the sale by the Tonnies group of a large pork producer APK Don (with a capacity of over 112,000 tons per year) of Thailand's Charoen Pokphand Foods (CP Foods) for 22 billion rubles, according to the materials of Rosselkhozbank. In addition, the Sibagro group of companies bought Promagro, which owns three pig farms, meat processing, feed production and 42,000 hectares of agricultural land.^[17]

Agricultural production in Russia decreased by 2% after an increase of 1.3%

By the end of 2021, agricultural production in Russia decreased by 2% after an increase of 1.3% a year earlier. This was announced in mid-December 2021 by the Minister of Agriculture Dmitry Patrushev at a government hour in the State Duma, noting that seasonal field work in the Russian Federation has been completed.

The year for the farmers was extremely difficult. Starting from the last winter sowing and during this year, the weather constantly made adjustments to the agricultural production process, in 16 regions a natural emergency regime was declared. And, of course, our industry, like others, is affected by the pandemic, - the head of the Ministry of Agriculture.

He cited data according to which in 2021 Russia collected 123 million tons of grain crops, including 76 million tons of wheat. This fully ensures the internal needs and export capabilities of the country, the minister stressed.

He also pointed to a large harvest of oilseeds (about 23 million tons), more than 40 million tons of sugar beets and about 7 million tons of vegetables. All these indicators are above the level of 2020.

According to Patrushev, the potato harvest in the organized sector at the end of 2021 amounted to more than 6.7 million tons. A new record for fruit and berry harvesting was also set, the agriculture minister said without specifying the figures.

Director of the National Fruit and Vegetable Union Mikhail Glushkov said that the production of tomatoes and cucumbers in winter greenhouses in 2021 exceeded 1.55 million tons against 1.49 million tons in 2020.

According to experts, in general, Russia managed to cope with the problems of 2021 and prevent the rise of food prices. As the chairman of the board of the Union of Grain Exporters Eduard Zernin noted, the year was remembered for "the rush of world demand for grain and numerous attempts by speculators to inflate already high prices for all grain crops, especially wheat."^[18]

Share of agricultural land - 13%

The rise of domestic wheat prices

Russian domestic wheat prices jumped in August 2021 to their highest level in at least a decade, raising concerns about inflation and a possible government response.

The price is close to the level last seen after the export tax was introduced.

Another area of concern is how big the new crop will be. In August, the Ministry agriculture USA said it expected wheat production Russia in at 72.5 million tonnes, 15% below the forecast made in July.

2020: Growth of agricultural production in the Russian Federation by 5%

The volume of agricultural production in Russia at the end of 2020 in comparable prices increased by 1.5% (in 2019, the dynamics was higher - + 4.3%), and in the actual prices, the growth exceeded 5% (up to 6.11 trillion rubles). This is evidenced by the data of the Infoline agency.

According to experts, in 2020, the agro-industrial complex of Russia showed positive dynamics, despite the low growth rates of demand for agri-food products within the country due to the fall in household incomes (the maximum since 2014), the difficult epidemiological situation (coronavirus pandemic COVID-19) and the lack of population growth.

One of the key factors in the rise in agricultural production in actual prices in 2020 was a significant grain harvest, an increase in milk yield and livestock production for slaughter. According to experts, the growth of the industry is ensured not only against the background of increased productivity, but also due to the introduction of new capacities.

Thus, in Russia in 2020, more than 200 large projects were announced for the construction and reconstruction of agro-industrial complex facilities with an investment volume of 950 billion rubles. Most investments were directed to dairy farming (87 projects worth 289 billion rubles).

In addition, the active investment phase in the greenhouse complex continued (48 projects worth 285 billion rubles). According to Infoline estimates, in 2020, Rusagro, Agroeko, Prodo Group, RBPI Group, Miratorg and Dymov introduced several large pig farms. EcoNiva-APK Holding and TiH Rus Milk Food LLC have significantly increased the cash herd due to the introduction of new farms, and the Management Company Greenhouse Growth Technologies and ECO Culture have significantly increased the area of ​ ​ their greenhouse complexes, the report says.^[19]

2019

Low use of pesticides in agriculture

Agricultural Market Participants Map

The Center for Strategic Development and Digital Transformation of LANIT-Integration conducted a market analysis of agriculture as part of its internal work. The results of the analysis are presented in the form of the so-called industry map. The company "LANIT-Integration" uses the map to provide information support for the activities of assessing the market demand in various classes of digital solutions, as well as to develop targeted proposals for the implementation, support and development of IP. This was announced on February 21, 2020 by LANIT.

Map of agricultural market participants (click to increase)

The map shows the largest players in the industry, each of whom, according to the profile of their main activities, is assigned to one of the main Fishery ("and aquaculture," "Vegetable production" Crop production and animal husbandry, "etc.) or providing (" Fertilizers, "" Seed production, "etc.) directions.

The participants are reflected on the map with the structure of ownership of assets and the indication of significant legal entities in the holdings, for all participants the annual revenue in rubles is indicated. Additional information is also indicated for some areas. For example, for participants in the Poultry Market Direction, data on the annual volume of products in thousands of tons are provided, for participants in the Crop Production Direction - data on the areas used in thousands of hectares.

The map was based on data from public industry rankings, open data on legal entities and the results of an analysis of industry experts.

• Open rankings were used to determine the list of the most significant players in the crop/livestock market (technologically and economically related areas) and poultry, as well as to determine some quantitative characteristics - areas and production volumes.
• Open data on legal entities engaged in economic activities within the framework of industry holding structures were used to determine the structure of ownership of holdings and their composition, as well as official revenues. For holdings, the total volume of annual revenue was defined as the arithmetic amount of income of the enterprises included in it. Total revenues are indicative and do not account for the aspect of proportionate distribution between beneficiaries in the event of a complex ownership structure.
• Industry experts were engaged to decompose the agricultural industry into areas and critically evaluate interim results.

You can get acquainted in detail with the map of participants in the Russian agricultural market here.

2018

Data from the Ministry of Agriculture

Potato production per capita

1. Belarus - 631.3 kg per 1 person

2. Ukraine - 487.4 kg

3. Netherlands - 384.8 kg

4. Denmark - 343.3 kg

5. Belgium - 299.2 kg

6. Latvia - 251.3 kg

7. Kyrgyzstan - 230 kg

8. Poland - 229.8 kg

9. Russia - 216.8 kg

10. Kazakhstan - 208.5 kg

Equestrian industry: 1.4m goals

Agrarian Skolkovo will be created in Russia

Under the Ministry of Agriculture of the Russian Federation, a Fund for the Development of Innovations in the Agro-Industrial Complex will appear, Izvestia reported at the beginning of the year.

The corresponding order came from the government: the authorities hope that this institute will contribute to import substitution in agriculture. As you know, during the period of sanctions and anti-sanctions, the volume of domestic food products on the market has grown, but the bulk of agricultural equipment, as well as seed material, is still imported.

"The fund will be involved, in particular, in solving the problems that are defined in the Federal Scientific and Technical Program for the Development of Agriculture until 2025," the press service of the Ministry of Agriculture noted.

Within the framework of this program, it is planned to develop new varieties of plants and animal species, as well as the development of new agricultural means of production.

It is expected that the fund will begin to function within 2-3 years. Investments states in this project will amount to almost 30 billion. rubles

2017

Deloitte: Russian Agriculture Market Overview

As part of the study, a comparative analysis of existing trends in the Russian agro-industrial complex (hereinafter referred to as the agro-industrial complex) was carried out and current problems, key factors and directions of development were identified. AGRARIAN AND INDUSTRIAL COMPLEX Russia

The results of the study are commented by Rinat Hasanov, Head of the Group for Services to Agricultural Sector Enterprises of Deloitte, CIS: "Crop production has remained a key driver of agro-industrial complex growth over the past few years. This year the situation is different: the record harvest (approximately + 13% compared to last year) did not compensate for the fall in prices (by 10‒25% depending on the culture), therefore, the revenue and profit of the sector in 2017 will be worse than last year's values. On the other hand, this is what will ensure the low cost of feed, and therefore the cost of pork and poultry meat at the end of 2017 and in 2018, which, in turn, will allow livestock to count on higher profits based on the results of 2017. "

The following are key findings from the study.

• At the end of 2016, the total profit before taxation of companies operating in the field of crop production and animal husbandry amounted to 251 billion rubles.
• Through subsidies received from the state, 87% of the profits of agro-industrial complex companies over the past three years have been formed, which means that it is too early to talk about agricultural projects reaching full self-sufficiency - subsidies remain one of the key factors in making investment decisions in the agro-industrial complex.

• The total cash execution of subsidies for the period from 2013 to 2016 amounted to 825 billion rubles.
• Compared to previous periods, the assessment of the state of the industry by business representatives has improved: 78% of companies speak about the positive state of affairs in the industry.
• The effectiveness of measures in the field of agro-industrial complex support in 2017 was rated by manufacturers at -0.08 on a scale of -1 to 1, where 1 is the highest score, while last year there was a similar indicator of -0.15.
• In 2017, respondents identified a new important factor in the growth of agribusiness competitiveness in Russia - technologization: more than 70% of experts noted its importance.
• Experts noted an increase in the impact of the strategy of entering new markets: if in 2015 it was not in the top 5 strategies, then since 2016 this strategy has remained in 3rd place in the ranking.
• A significant change in 2017 was the inclusion in the top 3 of the most important problems of the Russian agro-industrial complex of a shortage of qualified personnel.
• A special feature of the rating of problems in 2017 was the increase in the importance of factors for the high cost of energy resources (in 2017 this problem was noted by 22% of respondents against 6% in 2016 and 0% in 2015) and insufficient solvency of the population (20% of respondents in 2017 versus 13% in 2016 and 3% in 2015).
• Food costs in the total structure of population expenditures for 2017 amounted to 38%. Most of the money is spent on meat products, alcohol, vegetables, milk and confectionery.
• Wheat exports in 2016 increased in value terms by 7%, sunflower oil - by 21%, corn - by 43%.
• Total imports of agricultural products to Russia in 2016 decreased by 12% compared to 2015.
• The top 3 includes the following process technologies introduced by representatives of the agro-industrial complex of the Russian Federation: direct supply chain, accumulation of genetic information, accurate agriculture.

Rosstat: Rating of regions on the increase in agricultural production

The rating of regions in terms of agricultural production growth rates in the five-year period from the 3 quarter of 2012 to the 3 quarter of 2017. This time agriculture , of course, two regions of the Central Black Earth Economic Region - and - were in the top five leaders in terms of growth. Tambovskaya Kurskaya However, leadership over the Pskov region, located much north of the most fertile areas. Among the laggards were the Republic of Crimea and, on the Sevastopol contrary, having a climate quite favorable for the development of agriculture^[20]

This rating is based on the data of the Federal State Statistics Service on the quarterly index of agricultural production, which reflects the percentage increase in products in monetary terms compared to the same period of the previous year. The average is calculated for each quarter over a period of 5 years: from the 3rd quarter of 2012 to the 3rd quarter of 2017. For the Republic of Crimea and the city of Sevastopol, the data were taken for the period from 1 quarter of 2015 to 3 quarter of 2017.

In first place is the Pskov region. From the crisis, she practically did not suffer. The development of agricultural sectors is heterogeneous: if the livestock index grows, then the crop production index falls. Both indices fell after the start of the 2014 crisis, caused by sanctions and falls in the national currency and oil prices. However, if the livestock index against the background of the import substitution policy by the current year has recovered to the pre-crisis level, then the crop production index continues to fall. At the same time, even before the sanctions, there was a certain orientation of the region to a greater extent on animal husbandry than on crop production caused by climatic specifics: if the southern part of the region in climate is close to the north of Belarus and to the Baltic countries, then in the northern part the climate is closer to the Leningrad and Novgorod regions, respectively, it is more suitable for cattle breeding than for crop production. Even in pre-revolutionary times, sheep farming received significant development in the north of the region. Of the seven largest agro-industrial enterprises in the Pskov region, only one produces products related to crop production - Pskov Bakery OJSC. The rest - 4 dairy enterprises and 2 - meat. Among the points of the state program for the development of agriculture, 3 are devoted to animal husbandry and 2 to crop production, import substitution programs also focus on meat and dairy products, in this regard, the Pskov region with its developed livestock production was the winner of these programs.

In second place is the Tambov region, which belongs to the most fertile Central Black Earth Economic Region in the European part of Russia. Crop production prevails in the structure of agriculture, it was the main driver of the index growth in recent years. The region is among the top three leaders in the segments of winter and spring barley, sugar beet, sunflower. In animal husbandry, the situation is characterized by a strong bias towards the production of pork and poultry against the background of a sharp decrease in the number of cattle and a very weak growth in the number of small cattle. During the reporting period, pork meat production increased by about 3 times, poultry meat production - by more than 10 times. The production of eggs, milk, beef, other types of meat (rabbit, nutria, etc.) during the same reporting period decreased by about 15-30%. Among crop production, again, the greatest growth was shown by products considered by the state in the policy of import substitution as strategically important: corn, wheat, soybeans (more than 10 times), mustard (7 times), melons, potatoes. At the same time, the reduction was observed in the segments of rye, triticale, oats, millet, buckwheat (2 times), peas, sugar beets, and open ground vegetables. Thus, as in the case of the Pskov region, the main driver of the growth of the index is the policy of import substitution, but the reduction in the production of crops traditional for the Central Black Earth Region - rye, oats, millet, buckwheat and especially sugar beets, the production of which, as already mentioned, Tambovschina is among the leaders among the regions.

In third place is another region of the Central Black Earth Economic Region -. Kursk region As in the case of the Tambov region, crop production prevails there. The main crops are cereals, sugar beets, potatoes, open ground vegetables. During this period, the share of agriculture in the GRP of the region increased from 15.6 to 20%, but the number of industry organizations decreased. It can be assumed that the positive dynamics of the agricultural index is observed both due to an increase in the share of import-substituting products (an increase in livestock production, which was previously significantly inferior to crop production, in particular, the implementation of the regional program for industrial production of lamb), and due to the implementation of state support programs, in particular, support banks providing preferential loans to enterprises. AGRARIAN AND INDUSTRIAL COMPLEX There are seven such banks in the Kursk region: "," Rosselkhozbank"," Sberbank"Bank," VTB"," Gazprombank"," Alfa-Bank"," Promsvyazbank"."Raiffeisen Bank

Among the laggards are the Murmansk and Arkhangelsk regions, as well as two regions of the Crimean peninsula - the Republic of Crimea and the city of Sevastopol. With the Murmansk and Arkhangelsk regions, everything is relatively clear: the fall of agriculture in them is a long-standing process that has been going on since the late perestroika. Before the revolution, the Pomors were practically not engaged in crop production, and animal husbandry was reduced to the maintenance of deer, cows and sheep. The main branches of agriculture were fishing, hunting and gathering. In Soviet times, titanic efforts were made to breed crops and cattle in these areas, characteristic of lower latitudes. However, in a market economy, this turned out to be unprofitable - traditional fishing, reindeer herding, picking mushrooms and berries, as it turned out, especially on the example of neighboring Finland and Norway, are more profitable. At the moment, there is talk of a revival of agriculture in the regions, but it would be easier to revive the traditional sectors of Pomor agriculture, and not the cultivation of cereals and potatoes.

It is more difficult with Crimea. In the Ukrainian period, agriculture developed dynamically there, at the same time its development is hindered primarily by a shortage of fresh water for irrigation. Earlier, water on Crimean fields, gardens and vineyards came from the North Crimean Canal, which is currently blocked. If in 2014 there were 140 thousand hectares of irrigated land on the peninsula, now it is 17 thousand hectares. Rice cultivation has completely stopped, as rice checks require a lot of water.

Russia is preparing to seize the share of the sugar market

According to the results of the agricultural year from August 2016 to July 2017, Russia intends to increase sugar exports by 25 times from 8 thousand to 200 thousand tons, Russian Minister of Agriculture Alexander Tkachev said in early 2017.

"We predict that about 200 thousand tons of sugar will be exported at the end of the season," said the head of the Ministry of Agriculture. - For comparison: according to the results of the previous year, Russia sold 8 thousand tons of sugar, that is, an increase of ten times! This opens up great opportunities not only for agriculture, but also for the dynamic development of the economy as a whole, "the minister is sure

.

2016

A sharp increase in the collection of grain and leguminous crops

In 2016, 119.129 million tons of grain and leguminous crops in pure weight were harvested in Russia, Rosstat reports. In 2015, the harvest amounted to 104.8 million tons.

Including wheat in 2016 collected 73.268 million tons against 61.786 million tons in 2016.

Rye harvest increased in 2016 to 2.544 million tons against 2.087 million tons in 2015, corn harvest for grain - to 13.831 million tons against 13.173 million tons, barley harvest - to 17.988 million tons against 17.546 million tons, tertiary - to 624 thousand tons against 565 thousand tons, respectively.

Oat harvest increased to 4.756 million tons against 4.536 million tons last year, buckwheat - to 1.187 million tons against 861 thousand tons, millet - to 631 thousand tons against 572 thousand tons, respectively.

At the same time, the rice harvest fell to 1.078 million tons against 1.11 million tons in 2015^[21].

Record grain yields since 1801 Chart

2015

Sharp rise in vegetable exports

In 2015, exports of vegetables in Russia increased sharply, according to the Moscow International Trade Center.

In total, sales of vegetables, root crops and tuber crops rose 63.4 percent to $402.5 million. The largest growth was shown by sales of legumes; their volume increased by 53 percent, to $322.4 million.

In addition, exports of flour and cereals increased by 43.2 percent, as well as meat exports increased by 11.7 percent.

The most noticeable growth in percentage terms was shown by the export of cork and products from this material. Compared to 2014, Russia began to sell 82 percent more traffic jams. In 2015, sales were estimated at $1.16 million.

Despite the growth in sales of some Russian products, the overall export rate in 2015 was negative. Due to lower oil prices, total exports were 31 percent less ($343.4 billion) than in 2014.

According to RBC, the popularity of vegetable growing in Russia increased after the introduction of anti-sanctions, which banned the import of products from a number of Western countries.

Deloitte on trends in the development of the agricultural industry in Russia

Current state and trends in the development of agro-industrial business in Russia (data Deloitte):

2012: Production growth

Production volumes are agriculture growing. In 2009-2010, there was a decrease in crop production, but in subsequent years there was a noticeable increase. Livestock production is growing steadily.

Egg production volumes are increasing significantly. So the increase in 2012 compared to 2000 is about 8 million pieces.

Poultry production is on the rise. After the decline in volumes, which lasted until 1997, production began to skyrocket. The increase in 2012 compared to 1997 is 2400 thousand tons.

In the structure of consumption of the main types of meat, the share of domestic products is growing (in 2012, the share was 77.5%).

There are constant fluctuations in the dynamics of gross wheat harvest. However, collection volumes do not fall below 2003 levels. The largest volume of gross collection was recorded in 2008.

1947

Chairman of the collective farm "Red October," 1947.]]

1914

See also

• Agriculture (World Market)

Notes