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Volga Baikal AGRO News Update on Rating of Regions by the Volume of Export of Agricultural Products !!!
Development of foreign trade remains one of the strategic objectives of the agriculture.
Now 72 out of 85 regions of the country are involved in this process. At the same time, 68% of the total volume of shipments in value terms for seven months of this year was provided by the top 10. The main export categories of products are still grain, fat and oil products, fish and seafood.
The target for the export volume of Russian agricultural products for 2020 is $ 25 billion, and increasing the volume of supplies remains the main task of the industry, despite the adjustments made by the pandemic, Agriculture Minister Dmitry Patrushev said in early September. On that date, the export plan was fulfilled by 68%, – he noted to Agroinvestor. Decided to analyze how food shipments abroad are formed in the regional context. The data on the export of FGBI “Agroexport” of the Ministry of Agriculture for seven months of this year were taken as a basis.
Top 10 largest
Nevertheless, we do not have any other statistics yet. Thus, according to Agroexport, 72 out of 85 regions of the country carried out foreign trade in one volume or another for the specified period. The total export in value terms for the seven months of 2020 amounted to $ 14.4 billion. A year earlier, in January-July, exports were estimated by the department at $ 12.6 billion. Then 71% of the volume of supplies as a whole was provided by 10 regions. This year, the top ten has not changed, but its share has slightly decreased – to 68%. Eight of these ten regions have direct access to the sea in different parts of our country.
The Rostov Region is the leader of the top 10 largest exporting regions of agricultural products. For seven months, the volume of its export “Agroexport” estimates at $ 2.7 billion (in 2019 – $ 2.4 billion). 53% ($ 1.4 billion) in shipments from the region is expected to be accounted for by grain (due to the presence of ports and high production), almost 29% ($ 774 million) – on goods of the fat and oil segment, 13% ($ 346 million) – on other products, among which seeds of sunflower and oil flax, bran, pulses and other products.
Access to the sea and the title of the largest grain producer (not counting 2020, when the Rostov Region became the leaders in harvest) provide the third place in the ranking of the Krasnodar Territory with a volume of almost $ 1.27 billion (in 2019 – $ 988 million) for January – July. Like the leader of the list, grain crops account for the largest share in the shipments of the Kuban – 58% ($ 738 million). Fat and oil products account for 20% ($ 261.4 million) of total exports from the region. About 11% ($ 139 million) falls on food and processing industry products, in particular sugar, beet pulp, molasses, beer, coffee and tea extracts, etc.
What are the prospects
According to Anastasia Sysoeva, regions with low export rates of agri-food products, located far from powerful logistics arteries, can improve their position in the ranking in two ways. First, by organizing the supply of high-margin products with high added value. Secondly, thanks to the vertical integration of production and logistics. Moreover, the second method is far from always rational, she notes. “It is clear that the regions of the polar region, risky agriculture and simply small in size are unlikely to ever get into the top export-efficient regions for objective reasons,” adds Tatyana Kozlova, senior project manager, Appraisal and Financial Consulting, SRG … – At the same time, in the Nizhny Novgorod, Tyumen regions,
Grains, fish and seafood, and fat and oil products still form the basis of Russian food exports, recalls the director of the Strategic Marketing Department of Rincon Management Evgenia Shalikhmanova. The high rates of export of certain regions are associated precisely with the availability of a base for the supply of such goods – mass, large-tonnage and in steady demand in the world. However, Russian producers of non-primary agricultural products are still newcomers to the world market. “But for the export of goods, only political will is not enough, many routine actions are still required – to conduct research on target markets, rebuild production for the needs of foreign consumers, accredit manufacturers for international deliveries, find contractors outside the country, adjust logistics , etc., – says the expert. “On the example of the case with the opening of the PRC border for Russian poultry meat, one can estimate how long such a routine takes: almost half a year has passed between the permission to export poultry meat and the first shipments.” Now shipments continue to grow and the number of accredited manufacturers is increasing. And thanks to this, a two-way process is launched: on the one hand, consumers in other countries are beginning to recognize more and more Russian products and the field of its influence is gradually growing, and on the other hand, successful export cases attract more and more domestic producers to also try themselves in international trade. “So the trial export, small shipments are gradually developing into a success story,” she says.
Many Russian regions have the opportunity to increase foreign trade in food, Shalikhmanova is sure. For example, Russia is still little represented in the most capacious segment of the world food trade – meat export. As the position of meat products strengthens, the circle of exporting companies expands, and the list of countries available for cross-border trade grows, the export figures from the regions of the Center and the Volga region, leading in the production of meat, will also grow. “Another very capacious segment of international trade, where Russia hardly plays yet, is drinks, both alcoholic and non-alcoholic,” the expert recalls. – And here there are opportunities to create production even in regions that do not have climatic advances, but have access to logistics facilities. The balance of power among regions can change dramatically over time, Shalikhmanova believes, especially when and if the system of regional warehouses-consolidators of products starts working. Indeed, often the capacity of one manufacturer is not enough to organize rhythmic export deliveries, because the requirements of foreign counterparties imply the supply of large batches just-in-time and for a wide range of positions, she explains.
