World Grain - January 2005 - 16

countryfocus

Focus on Russia
Infrastructure and wheat quality issues
continue in post-Soviet Era Russia
by Mario Sequeira

Today's Russian agriculture sector bears little resemblance
to the one before 1991, when the Soviet Union collapsed. In
that year, a system lasting nearly three-quarters of a century
ended and a period of reform began that is continuing today.
From being a net importer of grains, Russia
has transitioned to a net
exporter. Its livestock
industries,
particularly cattle, have
shrunk considerably
as subsidies were
withdrawn. Where once it produced enough meat for its population, today the country is a big importer of high-value beef,
pork and Russia's poultry meat. The United States supplies
about 40% of poultry imports.
In 1991-1992, Russia imported 13.6 million tonnes of
grain, mostly feed grain for the sizable cattle industry, and
total grains exports were 555,000. In the 2003-2004 marketing year, the ﬁgures are estimated to be one million tonnes and
3.1 million tonnes respectively.
Russia became a net exporter of wheat in 2001-02, when
exports totaled 4.4 million tonnes and imports 630,000 tonnes.
The next year was a bumper crop year and exports hit a high
of 12.6 million tonnes.
Wheat's gain has been at the expense of the livestock industry, which received a lot of attention in the Soviet era. While
the beef industry is still suffering, the pig and poultry industries have stabilized and are rebounding.
Data (1,000 tonnes)
Production
Wheat
44,500
Barley
17,500
Oilseeds
4,900

Consumption
37,500
16,300
4,710

Exports
6,000
1,700
245

Imports
1,500
300
50

Key Facts
Capital: Moscow
Demography: Population 143.7 million, -0.45% growth
rate (July 2004 estimates); Russian, language.
Geography: Climate varies from continental to Arctic;
terrain ranges from plains, uplands, mountains and tundra.
Government: Federation. Chief of State is President
Vladimir Putin, head of government is Premier Mikhail
Fradkov.
Ofﬁcial agricultural agencies: Ministry of Agriculture
and Food, Minister Alex Gordeyev.
Economy: In its second decade of economic reform, Russia
has made signiﬁcant progress but many believe it is too
slow. The agricultural landscape has changed considerably
but remnants of the old Soviet system remain. The main
barrier is seen as the general resistance to the change.
However, change is occurring as Russia experiences the
beneﬁts of a market economy and more Russians adapt
to the harsh changes. Oil and energy continue to be the
biggest export earners and their strong prices has helped
pushed GDP growth to 4% and higher since the 1998
ﬁnancial crisis. This is likely to improve peoples' incomes,
increase consumption demand for food stuffs and stimulate
agriculture. The agriculture sector in Russia accounts for 5%
of GDP and employs 12.3% of the total labor force.
GDP per capita: U.S.$8,900 (purchasing power parity),
7.3% growth rate, 13.7% inﬂation, 8.5% unemployment
(2004 estimates).
Currency: Russian ruble. Jan. 7, 2004 exchange rate: 27.76
rubles per U.S. dollar.
Exports: U.S.$134.4 billion (2004), petroleum and
products, natural gas, metals.
Imports: U.S.$74.8 billion (2004), machinery and equipment,
meat, grain, consumer goods.
Major crops: Wheat, barley, maize, oilseeds, sugarbeets.
Wheat: Production in the past ﬁve years averaged
42.4 million tonnes a year, ranging from a low of 34.4
million in 2000-2001 to a high of 50.5 million in 2002-2003.
Imports averaged 1.1 million tonnes, exports averaged 5.4
million and consumption averaged 36.5 million.
Coarse grains: Five-year production averaged 31.4 million
tonnes, ranging from a low of 28.2 million in 2000-01 to a
high of 35.2 million in 2001-02 . Total use averaged 29.5
million tonnes: imports averaged 715,000 and exports
averaged 2.1 million. Feed use averaged 18.3 million
tonnes, in a range of 15.9 million in 2000-01 to 21.5 million
in 2003-04.
Transportation: Highways, 952,000 km, 752,000 km
paved; Railways: 149,000 km all 1.520-m narrow gauge;
Murmansk, Novorossiysk, Saint Petersburg, Rostov,
Vladivostok, Volgograd are major ports.

2004-2005 marketing year forecasts
Source: U.S. Department of Agriculture

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