Published: May 30th, 2016
Konstatin Babkin President of the Rosagromash responded: "In the European Union the support per hectare is about 500 euros, in Russia - an order of magnitude lower. In addition, we pressed high taxes and high interest rates - all this should be reduced."
As the Russian agricultural sector is transformed during a crisis, sanctions and the reduction of consumer demand? - These issues were discussed at the May 24 joint agricultural forum Russian "Vedomosti" newspaper and magazine "Agroinvestor".
Whatever you say, but the AIC is a workhorse of the Russian economy. For 2015, agricultural production increased by 2.9% for a total reduction of 3.8% of GDP. The level of self-sufficiency has been achieved on the bird, and in the coming years, it will happen with the pork. On the other hand, the economic crisis still makes its own rules, and farmers are learning not just to reduce costs, but to manage costs. For example, due to the impossible high rates, farmers are forced to abandon the bank loans and to live "on their own".
Staff of the sector supports the export
In the first and second sessions of the Forum participants have repeatedly criticized the imposition of duties on grain exports. Clarity in the session "Import substitution and export" was made by Deputy Minister of Agriculture of the Russian Federation Sergey Levin: "The Ministry of Agriculture is working on the formation of a separate sub-program of state support of agricultural exports in the framework of the state program, which will include activities for funding under the permitted by the WTO support . We are now at the final stage of the development of this sub-program. Hopefully it will be operational in 2017," - said Levin.
Forum participants were pleased with other messages. The Ministry gave preference to the exhibitions, in which Russian exporting companies are interested. It is planned to subsidize educational programs on the export of agricultural products, which includes the training activities of the region, as well as the implementation of teaching and training programs for the staff of the regional government with respect to the specifics of the international agricultural market.
Sub-program also includes the creation of a single nationwide brand «Made in Russia», carrying out research on the positioning of the Russian agricultural and food products under this brand, exploring potential markets for Russian products AIC ... Sergei Levin said that for effective interaction with business and solution of problems of agricultural exports inter-ministerial working group has been created in the Ministry of Agriculture of Russia. A plan of action for the promotion of Russian agricultural products to foreign markets with detailing the problems associated with documenting, implementation of phytosanitary and veterinary requirements of the importing countries.
A useful analysis of the situation in the AIC were held by Director of the Department of Agrarian Policy of the Eurasian Economic Commission Stanislav Buben, senior vice president, head offices in Russia, Ukraine and CIS companies «Olam international Limited» Raj Vardhan, Deputy director general UGC Dmitry Yuriev, Chairman of the Committee on agribusiness Association of European businesses Dirk Seelig, the head of the executive committee of the National meat Association Sergei Yushin, director general of the National Union of Pig Producers of Russia, Yuri Kovalev.
Sanctions are forcing to move
In the session "Russian agroindustrial complex in the conditions of crisis and contr-sanktions" Director of the Department of Economics and the state agribusiness support of the Ministry of Agriculture of Russia Anatoly Kutsenko made a memorable speech. He said: "We offer to slightly change the approach to the selection of investment projects and to introduce the so-called preselection. This will allow to plan investment policies and expenses of the federal budget for the planned period."
Under current rules the selection of projects is carried out upon receipt of credit by farmers. As a result, there are difficulties with the budget planning. Preselection for two years gives an insight to the investor that his project is in plans, and in this time he has to sign a credit agreement, fix the schedule of interest payments and assess the calculation of subsidies already more thoroughly.
Kutsenko boasted: "The average profitability taking the state support into account rose to 22% (according to preliminary data from Rosstat, in 2014 - 19.5%) Profit before tax by one-third higher than last year (taking into account the subsidy amounted to 345 billion rubles.). the share of profitable enterprises in the total number of agricultural enterprises rose (by 7 percentage points to 87.6%).
As expected, 2016 continues to try out the strength of Russian producers of meat products. Said CEO Group "Cherkizovo" Sergei Mikhailov, commenting on the results of the first quarter of 2016, "The Group's revenue increased by 8%. Low profitability in the reporting period is due to the decline in consumer demand and the seasonally low level of meat consumption. Overproduction of chicken in the country put pressure on the average price. At the same time due to the devaluation of the ruble the costs increased. Both factors had a negative impact on the average price, and as a result, poultry showed the worst results in all segments."
Mikhailov in response to Kutsenkos optimism expressed concern that the Ministry of Agriculture has no mechanisms to regulate the meat market with the growth of production costs and falling prices. Kutsenko said: "We work in a time of increased competition in the meat market."
"Cherkizovo" expects that in the second quarter, the level of consumption in Russia will come to a positive trajectory and will continue to rise against the backdrop of slowing the rate of decline in real incomes and growth in the services sector. The company believes that of gradual recovery of the Russian economy, primarily in the recovery rate of the Russian ruble. "Cherkizovo" consistently moving toward the goal to increase exports to 20% of the company's revenue over the next two years. Deliveries of poultry products "in the UAE and Egypt will be put into the coming months. It also covers the possibility of entering the markets of China, the Middle East and Africa.
Moderator, editor of "Vedomosti" Irina Skrynnik asked a provocative question: whether the agricultural enterprises need state support?
Konstatin Babkin President of the Rosagromash responded: "In the European Union the support per hectare is about 500 euros, in Russia - an order of magnitude lower. In addition, we pressed high taxes and high interest rates - all this should be reduced."
Maxim Basov, CEO and co-owner of "Rusagro" was brief: "We not working enough. Everybody have to work - from the farmer to the government , rather than rely on state support." Anatoly Kutsenko: "We are up against the budget, to rely only on direct government support is wrong, there are still economic levers. Once Russia supplied apples to England..." Sergei Mikhailov: "any state has a duty to balance the market." Head of the Roskachestva (Russian Quality) Maxim Protasov: "you can not play football when they play rugby."
Does the Ministry of Agriculture drive foreign harvesters to the fields?
President of Rosagromash Konstantin Babkin in a speech from the rostrum called government policies in relation to machine builders "friendly". Known government decree №1432 plays into the hands of machine builders. Now a quarter of subsidized agricultural exports is growing, especially harvesting. He acknowledged that we do not make non-four-and-four tractors - they mostly come from Belarus.
According to the Association "Rosagromash" for the first three months of this year, combine harvesters were sold 2.1 times more than in the same period of 2015 - 705 units. Self-propelled foragers by 75.9% - 51 units. By 45.2% increased sales of four-wheel drive tractors - up to 302 units against 208 units.. in the first quarter of 2015. Sales growth has shown that Russian factories produce modern machines, which are in demand in the domestic market.
Special correspondent "KV" "went" to the Ministry of Agriculture and saw a completely different data. A recent report on the results of AIC work in the past year, noted: outdated processors are still roaming the fields, because the Russian manufacturers, ostensibly, can not offer farmers a highly effective machines. According to the USDA, in the past year, 66.4% of all tractors purchased by agricultural enterprises, were imported. Share of Combine harvesters - 20.7%. At the same time, domestic producers are short of demand, which is why in 2015, some enterprises failed to make full use of subsidies for the purchase of agricultural machinery. Officials have suggested: "To increase the rate of renewal of the equipment in 2016, the question of the development of the production of foreign brands in Russia with a high degree of localization should be considered."
"We have a modern enterprises that can produce competitive equipment. Rostselmash is using its capabilities by 40%, the plant is able to produce up to 10 thousand. combines a year, but now are coming off the assembly line 4 ths. machines. Harvester "Akros" costs 10 million rubles, the German analogue "CLAAS." - 20 million rubles. But we still drag such foreign technology on the market. Why, if we can increase the production of your own? That's because there are kickbacks and interested parties such processes, "- shared his opinion with Nakanune.RU former Minister of agricultural machinery of the USSR Alexander Ezhevsky.
In order to stop the outflow of technology and move to increasing the park, agricultural organizations need to purchase 20 thousand tractors, 8 thousand grain and 2 thousand forage harvesters annually, cites the Ministry of Agriculture. But even after the increase in subsidies in 2015 farmers were not able to reach the desired pace: compared to 2014 the number of machines purchased decreased. Farmers do not have enough funds.
In this regard, the opinion of the general director of "Rusagro" Maxim Basov is interesting: "We bought dozens of domestic harvesting In 2015 and do not regret - a high-performance equipment."
"Recently, Russian Prime Minister Dmitry Medvedev has signed a decree to allocate 8 billion rubles Russian to Ministry of Agriculture to provide subsidies to producers of agricultural machinery in the framework of the decision of the Russian Government №1432, - Konstantin Babkin said behind the curtains of the forum to the special correspondent of "Krestanskie vedomosti". - However, there is a nuance. Upgrading technology in the farms is good, but the prospects for this fall and next year are not clear - will the money for preferential purchase of agricultural be allocated or not? We do not know the solution yet."
Stefan Duerr sentenced "the palm"
The topic of the milk was briefly discussed on the forum. It is a pity that there were no representatives of Soyuzmoloko. Stefan Dürr, CEO "Ekoniva-APA Holding"puffed for dairymen. He literally sentenced palm oil, "everyone knows about the dangers of this dubious fat, but nothing is being done to prevent it. Consider it my cry of the soul. " It turns out that the German cares about the health of Russians more than MoA Livestock Department.
Meanwhile, Soyuzmoloko reports that in I quarter of 2016 the import of palm oil in Russia grew by 16% compared to the same period in 2015 (233.4 thousand tons against 201.8 thousand tons..). The increase in supply contributes to lower prices for palm oil and the strengthening of the national currency against the US dollar. Moreover, the growing price competition between domestic and imported dairy products compels Russian industrial producers to optimize the structure of production costs and reduce the cost of the finished product. Often, this leads to the replacement of dairy fat with cheaper vegetable.
The forecasts of Soyuzmoloko are disappointing: the resumption of growth of the Russian economy and increasing consumer demand for milk production in farms of all categories will be 30,1-30,2 million tonnes, up almost 2% less than in 2015. Private households will reduce milk production by 3-5%, which will be about 600 thousand tons, farmers and individual entrepreneurs - will increase by 4-5% (about 90 thousand tons.). In agricultural production, it is likely to remain at the level of 2014-2015 years.
At the same time conservative scenario provides for the reduction of milk production in the agricultural enterprises - by 2%. "As a result, the volume of milk production in farms of all categories will be reduced more significantly and can overcome the psychological barrier of 30 million tons in 2016," - says the authors of the analytical report. They specify that this scenario will be implemented in the event that the current trends in the industry will continue.
I the Soyuzmoloko report it is noted that this year will stop the effect of a number of factors, which in previous years contributed to the increase in milk production. This, above all, is rising prices for raw milk. "If was about 15.4 rubles per 1 kg in January 2013 the average price for the Russian Federation, in January 2015, it rose to 21.1 rubles, which allowed to increase the intensity of production. As a result, the average productivity of cows in the agricultural enterprises increased to 4841 kg per year ", - the report says. In addition, grants provided to beginning farmers, facilitate the transition of farms in the population status of individual farms, which also contributed to improve their financial condition and production efficiency.
Department of livestock led by new head Charon Amerkhanova in June 2016 will present the Minister with the agricultural proposals for the establishment at the Office of the expert council on the development of dairy farming in Russia. This is stated in the minutes of the meeting the head of the Ministry of Agriculture Alexander Tkachev with industry associations on 17 May this year. Department of Economics are to prepare changes in the legal framework for the two-stage selection procedure for investment grants from the federal budget to November 2016 . This will affect how ivestment credits and compensation for capital expenditures.
Russia was taken into the International consumer organization
Russian quality system adopted by the International Association of Consumer testing and quality research products, the head of Roskachestva Maxim Protasov told. "The inclusion of Russian goods in international testing facilities enable the best Russian brands to gain international recognition and to enter foreign markets, - he said. - It will be another step to perform a strategically important task for the development of non-commodity exports."
The news are pleasing on the background of existing international sanctions against Russia. In addition to the inclusion of Russian goods in international tests, interaction within the framework of the association will increase the volume of output Roskachestvom information about product quality. A vast array of products on the foreign research data, which is represented on the Russian market, will be available for Russian users Roskachestva portal. First of all, it concerns the electronics, home appliances and other products, quality information that interested consumers. Also, cooperation with the ICRT can open up new prospects for Russian laboratories that can now apply for carrying out international research conducted by the association.
Today in Russia there are more than a thousand systems of voluntary certification and public organizations that conduct consumer testing and label products with different icons. It is worth noting that, according to VTsIOM, such marketing tools is not trusted by over 63% of Russians. At the same time, 82% of Russians believe in the need to create a single state system of organizing objective research to assess the quality of products.
... Last year, the federal budget 234 billion rubles have been allocated to support agriculture., Which is 19% more than the figure of last year. At the same time, in spite of the budget sequestration, the Ministry of Agriculture promises to uphold the level of support this year.
Reference "Krestianskie vedomosti"
The volume of agricultural production in Russia in April 2016 increased by 2.7% compared to the same period last year - up to 299.5 billion rubles, according to Rosstat. The number of cattle in farms of all agricultural producers amounted to 19.8 million heads at the end of April this year, which is 2.1% lower than a year earlier. In particular, the number of cows has decreased by 1.7% - to 8.4 million head, sheep and goats - by 0.5%, to 26.8 million head. The number of pigs increased by 8.2% - to 22.9 million head. In January-April, the farms of all categories produced 4.2 million tons of livestock and poultry for slaughter in live weight, as well as 8.9 million tons of milk and 13.8 billion eggs. Thus, the production of livestock and poultry increased by 6%, milk - by 0.8%, eggs - by 3.6%.
Source: "Krestianskie vedomosti"
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