6 min
1290 ppl- What is exported?
- Enterprises exporting agricultural products
- History of Russian exports in the XX-XXI centuries
- Russian exports amid the pandemic
- Export results for 2020
- Export results for 2021
In recent years, Russia has been increasing the volume of exports of agricultural products. According to the world’s leading food database FAOSTAT, in 2019, Russia ranked first in the world in terms of exports of oats, barley, buckwheat, sugar beet, was in the top three in terms of supplied rye, wheat, cabbage, potatoes, and was among the top five in terms of chicken and rabbit meat. By 2020, supplies to foreign markets have increased 4 times compared to 2010. The main share of exports can be attributed to cereals — 34% of the total, followed by fish and seafood — 17%, oil and fat products — 16%.
What is Exported?
- Cereals. First of all, wheat — in 2020, Russia exported 38.6 million tons, that is, approximately 20% of the world market. Barley — 6 million tons, buckwheat — 59 thousand tons, oats — 76 thousand tons. The total volume of cereals amounted to almost 50 million tons, 10.1 billion dollars in monetary terms, which resulted in the world’s fourth place in grain export.
- Oilseeds. According to the 2020 data, most of all, i. e. 1389 thousand tons, accrues to soybeans. Russia is among the top ten exporting countries, still being far behind the leaders. Russia is the world’s second in the supply of sunflower seeds — 1376 thousand tons, being second only to Romania. It sells 720 thousand tons of rape, being in the top ten on a global scale. Mustard seeds — 89 thousand tons, the best result for the last quarter of a century, the second place after Canada. In monetary terms, oilseed exports amount to $39.5 million.
- Vegetables. In terms of potatoes, Russia is among the second ten exporting countries. For 2020, 423 thousand tons were delivered, mainly to the CIS countries. In addition, it exports onions (62 thousand tons), fresh cucumbers and tomatoes (28 and 20 thousand tons, respectively), carrots (18 thousand tons), cabbage (15 thousand tons). The total amount of vegetable exports was 90 million dollars.
- Fish and seafood. In 2020, the total volume of exports of fresh and frozen fish amounted to 1,618 thousand tons, or $2,372 million. Most of the products are exported frozen, among the valuable commercial varieties are pollock (793 thousand tons), herring (216 thousand tons), cod (144 thousand tons), Pacific salmon (115 thousand tons), and others. 136,000 tons of fresh and frozen seafood in the amount of $1,819 million were exported. These are crabs (73.1 thousand tons), squids (31.7 thousand tons), shrimps (12.8 thousand tons), etc.
- Livestock. As of 2020, Russia exported 544,000 tons of meat and variety meats worth $914 million. Basically, these are poultry products (295 thousand tons) and pork (130 thousand tons). In addition, live cattle and poultry are exported, these make $41 million and $12.2 million respectively.
Enterprises Exporting Agricultural Products
- PJSC RUSAGRO is one of the largest agricultural holdings, it grows crops, produces sugar, sunflower oil, and pork. Exports goods to 35 countries.
- PJSC Cherkizovo Group is the Russian market leader in the production of poultry meat, pork, convenience meats. Exports to the countries of the East, China, Africa, the CIS.
- Prodimpex Group is the largest producer and exporter of white sugar and cereals. Export destinations: Turkey, Cyprus, Netherlands, Greece, EU.
- Miratorg Group is one of the largest meat producers, a full-cycle agricultural holding, from fodder production and animal husbandry to finished product sales. Exports meat and semi-finished products to neighboring countries, the EU, Japan, Brazil.
- Agrocomplex named after N. I. Tkachev is a major producer of cow's milk, sugar, and meat. Business areas: crop production, animal husbandry, poultry farming, meat processing. Exports grain, poultry, sugar to China, Libya, Iran, the CIS, the Middle East.
History of Russian Exports in the XX-XXI Centuries
1900–1917
Stolypin's agrarian reform increased the number of strong farm economies. Cultivation areas, the quality of land cultivation, technical facilities improved, and productivity increased. Peasants were given lands in Siberia, turned uncultivated plots into fertile fields. The Peasants' Bank gave loans to farmers. As a result, in 1909, Russia became the world’s main producer and exporter of grain. In addition, chicken eggs and butter were sold to European countries.
1920–1940
Changes in the political system, revolution, course shift could not but affect the state of agriculture and the economy as a whole. The authorities prioritized oil and petroleum product export. But grain was still actively sold. In the 1930s, agricultural products accounted for 40% of the total exported goods. A decade later, volumes declined to 10% due to the global loss in wheat value. The best sold crops were wheat and rye.
1950–1970
After the Second World War, the Soviet agriculture declined again. The areas of cultivated fields, the number of livestock and poultry decreased drastically. Just when combat operations stopped, the state started rebuilding cities and enterprises, agriculture became a live issue later. It was only in early 1950s that yields and production volumes regained their pre-war figures. Since 1954, a large-scale Virgin Lands Campaign was launched – those concerned free lands in Kazakhstan, the Urals, and Siberia. But even these measures did not help to restore leadership in the world market. Exports had to be reduced, and by the 1970s, they shut off. Prior to that, the USSR supplied wheat, flour, cotton, and sugar.
1970–1990
Since the 1970s, the country was heading towards an agrarian crisis. Almost all branches of agricultural production became unprofitable. State farms and collective farms could not execute plans, the supplied products were not enough to feed the country. As a result, the USSR began to liquidate farms that did not generate income. The share of rural products in total exports did not exceed 2%. The situation worsened, the Soviet Union turned from an exporter into the largest importer of food products, it even bought wheat and corn from the USA, Canada, and Brazil. This continued until the breakup of the Soviet Union.
2000–2017
By the 2000s, the political situation more or less stabilized, so the Russian Federation returned to the revival of agriculture. Private farms and agricultural organizations received equal support from the state, and budget funds increased 10 times compared to the 1990s. With the development of domestic production, there appeared an opportunity for exports. These included cereals, oilseeds, fish and seafood.
2018 to present
Agriculture completely covers the Russian food demand. Therefore, the priority is to increase export volumes. The products are still the same: grains, oilseeds, fish.
Russian Export Amid the Pandemic
Restrictions, border closures caused by COVID-19 inevitably affected global trade. For example, by May 2020, US exports decreased by $50 billion. But Russia, on the contrary, increased supplies. Why so?
Many countries, having lost contact with their usual suppliers, began to enter new markets, including the Russian market. The President of Kabosh Group of Companies, a large agro-industrial holding, says that the reason for choosing our products lies in a good ecological situation, close attention to livestock management, the use of safe fertilizers and proper crop rotation to preserve land fertility. The President of the Russian-Asian Union of Industrialists and Entrepreneurs believes that in difficult conditions, it was possible to maintain and increase export growth thanks to stable yields and state support.
What goods were exported the most?
The main product is grain, 33% of all agricultural supplies. Export of buckwheat, barley, and flax seeds escalated. In addition, meat, dairy products, confectionery were exported, mainly to China and Vietnam. The United States bought more ice-cream. Trade with Algeria, South Korea, Germany, China, Turkey and Kazakhstan increased.
Export Results for 2020
For the first time in a long period, exports of agricultural products exceeded imports. Until 2015, the situation was reverse, imports were 4 times bigger than exports. The events of 2014 devalued rubles, sanctions were imposed, so the state launched an import substitution program. It turned out to be successful – as a result, it was possible to significantly reduce the number of imported goods. Compared to 2019, the volume of supplied products increased by 20% and afforded more than $30 billion. A good harvest made it possible not only to cover the country's domestic needs, but also to expand sales markets.
In 2020, the Russian Federation ranked 19th in the list of the world's major food exporters. According to the Federal Customs Service, the main buyers were China, Turkey, Kazakhstan, and Egypt. Compared to 2019, exports of all grain crops, fat and oil products, poultry and pork meat, and dairy products increased. Though, fish and seafood sales decreased slightly – by 2.1% compared to the previous year, the reason were lower prices and China import restrictions.
Export Results for 2021
In 2021, agricultural exports increased by 21%. FSBI "Agroexport" under the Ministry of Agriculture reports that in monetary terms, the total volume of exported agricultural products amounted to $37 billion, which is more than 71 tons of food and raw materials. 12% more grain crops, and 48% more fat and oil products were sold. Fish and seafood exports grew and yielded 25% more than in previous year, milk and meat gained 30%. Turkey became the main buyer in 2021, followed by China, South Korea, Kazakhstan, Belarus.
