Government Approves Grain Complex Development Strategy
The Government of the Russian Federation approved a long-term strategy for the development of the grain complex until 2035, proposed by the Ministry of Agriculture. The best-case scenario allows for the increase of grain production to 150.3 million tons per year by 2035 (+33% vs. 2018). The export would reach 63.6 million tons (+16%) by the end of the calendar year.
Stimulating the grain industry, which forms the basis of Russian agricultural exports, will allow to increase food supplies abroad to $45 billion over the next 6 years, and will also give impetus to the development of related industries. At the same time, the key goal remains to maintain a high level of food security in the country by fully satisfying the needs of processing enterprises and increasing domestic consumption.
By 2035, grain consumption in Russia will amount to 86.6 million tons, including 52.3 million tons used in the production of animal feed and compounds. 15.2 million tons will be used for food purposes (production of flour and cereals), 12 million tons - to provide farmers with seed grains, 5.6 million tons - for other purposes of industrial grain processing.
The strategy is also focused on improving the quality of the grain and derived products. To increase the production of high-quality wheat, the industry will focus on the development of wheat market monitoring mechanisms for specific qualitative characteristics and the reduction of quarantine facilities. The strategy also envisages improvements of Russian phytosanitary requirements and requirements for safety and product quality, taking into account the standards of current and prospective trading partners in the global grain market.
In addition to increasing a number of key quantitative and qualitative indicators of the work of the domestic grain complex, the implementation of the strategy provides for the rapid expansion of transport and logistics infrastructure, as well as scientific and technical support for the industry.