Volga Baikal AGRO NEWS Update on the Russian agricultural sector status !!!
Russian agricultural sector weathers negative effects of the pandemic.
Growing even in times of turmoil, agriculture remains the cornerstone of the Russian economy. In 2020, private farmers and agricultural enterprises ramped their production levels up.
Russia’s agricultural sector enjoyed another year of growth in 2020 despite multiple shocks to the country’s economy, reports bneIntelliNews citing Bank of Finland Institute for Economies in Transition (BOFIT). Grain harvest increased by 10% last year to 133 million tonnes approaching the record harvest of 2017 of 135,4 million tonnes. Overall, agricultural output grew by 1,5%, which was weaker than in previous years, as the sector still suffered from the effects of the pandemic.
The development of the sector has been fuelled by the Kremlin’s ban on all agricultural imports to Russia imposed in 2014 as tit-for-tat sanctions against the European Union. Russia used the ban to pour investment into agriculture to make the country autonomous. As a result, grain exports have become a significant contributor to the budget bringing around $25 billion in 2020.
According to the report, the fastest growth has been posted by private farmers, whose share of total crop production has gradually risen to more than 20%. Agricultural corporations, co-operatives and organisations have also succeeded in rapidly ramping up production. Currently, they account for about 55% of Russia’s crop production and over 60% of livestock production.