Volga Baikal AGRO NEWS Update on the Russian – Chinese Trading Relations !!!

Trade agricultural turnover between Russia and China increased to almost $ 5 billion

Volga Baikal AGRO NEWS Update on the Russian – Chinese Trading Relations !!!

Trade turnover of agricultural products between Russia and China increased to almost $ 5 billion. For the period of January – November 2020, deliveries increased by 11%.

Despite the general downturn in business activity, the turnover of agricultural products between Russia and China for 11 months increased by 11%, amounting to $ 4.9 billion, – reports the press service of the Ministry of Agriculture. According to the head of the department Dmitry Patrushev, today China is the largest buyer of Russian agricultural products and food, according to the results of last year its share in agricultural exports amounted to 12.5%.

According to the agreement between the governments of Russia and China, by 2024 the total trade between the countries should reach $ 200 billion. For this, it is necessary to use the full potential of Russian-Chinese relations, Patrushev stressed. In addition, in order to develop partnership in the agro-industrial complex, the minister noted the need to resume joint development of plans to deepen Russian-Chinese cooperation in terms of supplies of livestock and crop products.

The most promising directions for export to the PRC are legumes, poultry, pork, vegetable oils, fish and dairy products. According to the vice-president of the Russian Grain Union (RZS) Alexander Korbut, the prospects for the development of exports to this country in Russia are quite good, given that China is focused primarily on final products. “Our supplies to China are almost one and a half times more expensive than the main export. However, the restrictions imposed by the country on fish for Russia are quite serious and may have consequences, ”the expert says. Recently, China, due to the threat of the spread of COVID-19, suspended the import of Russian fish, closing the last receiving port of it – Dalian. Earlier in October, China began to restrict imports of Russian fish products in connection with the detection of traces of coronavirus on packages.

Korbut believes that the restrictive measures in the form of duties, which are now being introduced by the Russian government, worsen the atmosphere of trade with China, against the background of this trade turnover in other agricultural products can be crucial for the rapid adoption of important decisions. According to him, China believes that Russian products are of significantly higher quality compared to Chinese, which is objective, and this helps to sell products. “Moreover, China is a really huge market, the population there is 10 times more than in Russia,” – he added.

Korbut believes that it is quite possible to increase supplies of rapeseed oil and meal to China, but the volumes will not be too significant. General Director of the analytical company “ProZerno” Vladimir Petrichenko told  to Agroinvestor that China is a limitless market for such volumes of products as are produced in Russia. “Basically we can offer sunflower, soybean and rapeseed oil there. Although the capacities that deliver rapeseed oil are not enough, ”the expert says. He adds that if an export duty is imposed on vegetable oil, this will negatively affect exports. This will take Russian oil out of the market and make it uncompetitive in price, not only for China, but also for any country.

General Director of the Institute for Agricultural Market Studies (IKAR) Dmitry Rylko says that soybeans occupy a significant share in Russian exports to China, but “not so dramatically high.” “Therefore, the imposition of a duty on soybeans is a serious blow, but not fatal, since we have other export destinations to China, which are developing and growing normally. Soy, of course, is the number one product that we supply there, it is very expensive for China, and the fact that our soybeans will cease to be exported there in the foreseeable future is bad,” – Rylko sums up.

Source: Agroinvestor.ru


Volga Baikal AGRO News Update ......

Agriculture News Russia and World Grain News !!!