Russia expects international investment in agriculture

Russia reckons with greater international investment in the agricultural sector. This was announced by Sergei Korolev, First Deputy of Russia’s Minister of Agriculture at the Global AgInvesting-2011 Conference in New York, as reported by IA SoyaNews. 

Korolev believes that the areas of cereal, poultry and pig production are particularly attractive for investors.  He explained what perspectives investment in Russian agribusiness brings and predicted that by the year 2020 the volume of poultry production in the Russian Federation would reach about 4.5 million metric tons.  According to the Ministry, cereal production is to be increased to 125 million metric tons, of which 40 to 45 million metric tons will be earmarked for export.

Korolev also stated that government support contributes to the attractive investment climate in the agricultural sector. In the year 2010 it amounted to $ 3.68 billion, including $2.39 billion for subsidizing loans.

Source: Agency AgroFakt of 06.05.2011

Government support in the agricultural sector rises till 170 billion Rubles

At a session of the Duma the Prime Minister of the Russian Federation, Vladimir Putin, commented on the plans of the central government to introduce changes in the volume of state support in the federal budget, reports PRIME-TASS. Putin has announced a 20 billion Ruble increase in budget funds earmarked for the Russian agricultural sector in 2011, taking the total up to an amount of 170 billion Rubles. The Prime Minister also stressed that Rosagroleasing was to offer approx. 6,000 machines to farmers at a discount of 50%.

Furthermore, federal and regional budgets were to support farmers in connection with the costs of settling land issues. Altogether 120 million Rubles are to be disbursed for this.

The head of government also said that federal budget spending on support for the agricultural sector in 2011already amounted to over 150 billion Rubles. In addition financial institutions such as Rosselkhozbank and Sberbank were also reserving funds totalling 100 billion and 50 billion Rubles respectively for loans to farmers.

Borrowing needs for sowing and planting have been covered in full. The Prime Minister pointed out that Rosselkhozbank and Sberbank had made 150 billion Rubles available for this work. He added that the price reduction for fuels and lubricants had been retained.

Putin stressed the need for catching up on the backlog caused by the late start to the drilling and planting operations.

“I should like to stress that we shall help everybody in the country, both the large farms that are concentrated particularly in the south of the country and the small and medium-sized farms”, added  the Prime Minister.

Source: Interfax No.18 (1013) of 11.05.2011 and agency AgroFakt of 20.04.2011   

Agricultural production grows by 10 to 11 %

In 2011 growth in agricultural production will reach a record level and rise by 10 to 11 %, announced Deputy Prime Minister and Minister of Finance Alexei Kudrin at a Duma session.  “This is one of the highest performances in recent years”, added the Deputy Prime Minister.

According to the information supplied by the State Statistics Authority, agricultural production dropped by 11.9 % in 2010. With consideration given to the consequences of the great drought in summer 2010, the Ministry of Agriculture had itself forecast a drop in agricultural production by 9 to 10 % at the end of 2010.

Source: Agency AgroFakt of 11.04.2011

Forecasts for the grain harvest 2011

The agricultural sector appears to have overcome the consequences of the drought in summer 2010 reported the Minister of Agriculture of the Russian Federation, Elena Skrynnik, at a meeting of the Presidium of the Council in Moscow on 28 April.

The index of agricultural production in the first quarter was 100.7 % and that was to be taken as a clear sign that the sector was no longer in a difficult situation, stressed Elena Skrynnik. She added that the measures taken by the government were having positive effects on eliminating the results of the disaster.

Talking about the goals set for this year, the Minister said that the most important matter was to carry out the drilling and planting on 50 million hectares within an optimal period. According to estimations by the Ministry, the grain harvest in this year can amount to 85 million tonnes.

Source: Interfax No 17 (1012) of 04.05.2011