Volga Baikal AGRO News Update on the Preliminary Results – 2021 & Strategic Plans – 2022 !!!
In 2021 the agricultural production in Russia will decrease by 2% VS the increase of 1.3% in 2020.
In 2021 the profitability of the agricultural production will reach 23.4%.
Dmitry Patrushev, head of the Ministry of Agriculture, has noted that at the government hour in the State Duma. According to him:
Next year the index of the agricultural production will increase up to 101.3%.
The year was extremely difficult for farmers. Since the last winter sowing and throughout this year, the weather has constantly made adjustments to the process of agricultural production, a natural emergency regime has been declared in 16 regions.
Numbers:
According to the Ministry of Agriculture, the volume of grain harvest in net weight will exceed 123 million tons, including about 76 million tons of wheat. This fully meets the domestic needs and export opportunities of our country. In addition, 23 million tons of oilseeds, more than 40 million tons of sugar beet, about 7 million tons of vegetables have been harvested. All these indicators are higher than last year’s level. The potato harvest will exceed 6.7 million tons. In addition, the record for harvesting fruits and berries will be updated this year.
Export:
The export of agricultural products from Russia by the end of the year will amount to $35 billion. Special attention is paid to the supply of products with high added value. According to Patrushev, the growth of world food prices affected the volume of exports.
Prospects for 2022:
The structure of the sown areas for the future harvest has been worked out. In general, the area will grow by more than 1 million hectares. The increase is planned for spring grains, including buckwheat, sugar beet (expansion of sugar beet crops is planned up to 1.1 million hectares), rapeseeds, soybeans. Special attention will be paid to increasing the production of potatoes and vegetables of open ground.
In 2022, the production and export of agricultural products should increase. Positive dynamics will be the result of measures of state support of the agro-industrial complex.
Opinion:
- Vice-President of the Russian Grain Union Alexander Korbut highlights that the increase in agricultural production will be in the region of 0-0.5% relative to the level of last year. The reason for the low indicators is a reduction in production volumes. “Moreover, the decrease in grain harvest has shown that it is a more significant driver for crop production than other agricultural crops. According to reports, we have received a good harvest of sugar beet and oilseeds.”
- Chairman of the Union of Sugar Producers Andrey Bodin emphasizes that the union expects to expand sugar beet crops to 1.1 million hectares. “This will increase sugar production and form sufficient commodity stocks in order to completely abandon imports in the second half of 2022, and in the future — to restore positions on the export of Russian sugar.” In 2021, the area under beetroot was increased by 8%. However, the quality of the harvest was seriously affected by adverse weather conditions. Despite this, the production volumes of beet sugar in the current season, together with imported supplies of white sugar and raw sugar within the quota approved by the EEC Council (no more than 300 thousand tons until August 31, 2022), will fully meet the needs of the domestic market.
- The head of the Oil and Fat Union Mikhail Maltsev, in turn, said that the collection of oilseeds this year will exceed the record of 2019 by 5.5% and will amount to 23.7 million tons. Limiting the export of these agricultural crops will lead to maximum utilization of domestic processing capacities and will make it possible to increase exports of finished products in 2022.