Russian agriculture: Growth and institutional challenges (2024)

Section snippets

Recent developments

Russian agriculture has demonstrated steady growth since 1999, despite intervening periods of economic and financial crises. The per capita consumption of main food products is now close to the nutritional recommendations of the Russian Ministry of Health and the average caloric intake in Russia comfortably exceeds the FAO and USDA minimum levels. Several trade-related factors, such as the devaluation of the ruble that made imports more expensive to the Russian consumer, the embargo on food

Main factors for future development

Against the backdrop of these impressive achievements in recent years, we analyze the main factors that may affect – positively or negatively – further development of Russia’s agriculture. Agricultural growth and rural development are constrained by underutilization of Russia’s agrarian potential, which is largely due to the anomalous agrarian structure, inadequate agricultural education and research systems, and the unsatisfactory standard of living of the rural population that encourages

Conclusion

This article suggests certain steps that can make Russia’s agricultural policy more relevant for further development of agriculture and rural life. The key conclusions are briefly summarized below:

  • helping the smallholder sector to advance from subsistence farming to commercial farming and free domestic trade;

  • changing the food security paradigm from self-sufficiency to broad access of the population to safe, high-quality food products through free trade;

  • turning from state support favoring a very

Acknowledgments

The articles draws on Shagaida and Uzun (2017). The authors would like to thank Ekaterina Shishkina from the Center of Agricultural and Food Policy for her valuable assistance with data collection and analysis and David Sedik from the Food and Agriculture Organization of the U.N. for his insightful comments on issues relating to Russia’s food security and trade policies. The authors also acknowledge the constructive comments of two anonymous reviewers, which have been extensively used in the

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Russian agriculture: Growth and institutional challenges (2024)

FAQs

What are the challenges of agriculture in Russia? ›

Food access, recovery of abandoned agricultural land, and the concentration of both land and state support in large agricultural enterprises are then identified as the main challenges.

What is the growth rate of agriculture in Russia? ›

Despite negative consequences of the pandemic, the agricultural sector of Russia continued its growth. During 11 months of 2020, the sector increased by 1.5% and it is expected that the growth rate would reach 2%.

How does the Russian Ukraine war affect the agriculture industry? ›

The war has also substantially limited the ability of Ukrainian farmers to grow and ship their crops. The same source estimates the war has imposed an additional $36.2 billion in indirect costs to agriculture, mainly in the form of foregone production and higher logistics costs for continuing agricultural exports.

What factors limit farming in Russia? ›

Climatic and geographic factors limit Russia's agricultural activity to about 10 percent of the country's total land area. Of that amount, about 60 percent is used for crops, the remainder for pasture and meadow (see table 15, Appendix).

What is one of the biggest challenges of Russian agricultural sector? ›

Food access, recovery of abandoned agricultural land, and the concentration of both land and state support in large agricultural enterprises are then identified as the main challenges.

What are the three most significant challenges facing agriculture today? ›

2022's Top Ag Issues and A Look Ahead
  • Rising input costs. An issue at the forefront last year was the rising cost of everything. ...
  • Ag labor. The lack of farmworkers continues to be U.S. agriculture's most frustrating challenge. ...
  • Trade. ...
  • Water regulation and rights. ...
  • Farm bill.
Jan 4, 2023

What is the current state of agriculture in Russia? ›

Crop production increased by 6.1%, while livestock production increased by 1.6% compared to 2018. According to Russia's Ministry of Agriculture, agricultural production will keep a positive trend in 2020 even given the Covid-19 pandemic and estimates growth in the range of 2-3%.

Is Russia good for agriculture? ›

Russia as the largest country by landmass worldwide is also in possession of a vast area for agricultural activity. Given the climate characteristics of the region, fruit and berry production is somewhat limited.

What is Russia's main agriculture? ›

It was the largest world producer of barley (17 million tons); It was the 2nd largest world producer of sunflower seed (12.7 million tons), second only to Ukraine; It was the 13th largest world producer of maize (11.4 million tons); It was the world's largest producer of oats (4.7 million tons);

How does Russia's climate affect agricultural production? ›

Severe and extensive droughts can cause a 40–50% reduction in gross grain yields in major grain-producing regions.

How did the Russian war affect agriculture? ›

The war led to reduced access to ports, especially at the Sea of Azov, and an increase in export restrictions for key agricultural products, including cereals and sugar, and for certain nitrogen fertilisers.

Does US get grain from Ukraine? ›

U.S. total imports of agricultural products from Ukraine totaled $143 million in 2019.

What is Russia most important industry? ›

It is the world's leading natural gas exporter, the second-largest natural gas producer, and the second-largest oil exporter, and producer. Russia's foreign exchange reserves are the world's fourth-largest. It has a labour force of roughly 70 million people, which is the world's seventh-largest.

What are 3 agricultural products in Russia? ›

Russia and Ukraine are significant producers and exporters of several commodities including wheat, corn, sunflower oil, and fertilizer.

What crop does Russia produce the most? ›

Wheat was the most produced food commodity in Russia in 2019 followed by sugar beets & milk. Russia produced over 74 million metric tons of wheat in 2019.

Why did the Russian army destroyed crops and building? ›

As German armies further moved, the Russian army destroyed crops and buildings to prevent the enemy to enter easily. Destruction of crops and buildings led to over three million refugees in Russia.

Why did the Russian army destroy crops and buildings? ›

As they retreated, the Russian army destroyed crops and buildings to prevent the enemy from being able to live off the land. It led over 30 lakh refugees in Russia.

What are the top 5 crops produced in Russia? ›

Agricultural lands occupy 13 % of the territory of Russia (25). Wheat, sugar beet, potatoes and cereals (maize, barley, oats and rye) are Russia's most important crops (20).

What are the three key challenges facing agriculture and how to start solving them? ›

These three challenges – feeding a growing population, providing a livelihood for farmers, and protecting the environment – must be tackled together if we are to make sustainable progress in any of them.

What is the biggest problem in agriculture? ›

Environmental Issues

Many environmental issues affect whether farmers have a good year or not. Soil quality, water quality, climate, and terrain are just a few of the environmental issues that may impact profits and productivity for farmers in any given growing season.

What are 2 issues facing modern agriculture? ›

Farmers need to deal with many problems, including how to: Cope with climate change, soil erosion and biodiversity loss. Satisfy consumers' changing tastes and expectations.

Does Russia grow a lot of crops? ›

Russia is a major global producer and exporter of grains.

What percent of the population in Russia is involved in agriculture? ›

In 2021, 5.8 percent of the workforce in Russia was employed in agriculture, 26.87 percent in industry and 67.32 percent in services.

Which country is most powerful in agriculture? ›

China is the world's largest grain producer, yet has grown more dependent on food imports in recent decades. Much of India's output is produced by subsistence farmers and consumed locally. The U.S. is the world's top food exporter thanks to high crop yields and extensive agricultural infrastructure.

Which country is most successful in agriculture? ›

China is the world's largest rice, wheat, and potato producer. They are also the second-largest producer of corn. China has over one billion acres of arable land, about one-fifth of the world's total. The country's agricultural output has steadily increased due to improved technology and increased investment.

Who owns the most land in Russia? ›

In 2022, Miratorg listed as the largest agricultural holding by farmland ownership in Russia. Prodimex ranked second with about 900 thousand hectares in ownership in that year. EcoNiva APK displayed a significant growth in its farmland volume over the past years, accounting for over 630 thousand hectares in 2022.

How much of the world's food is produced in Russia? ›

Grain and Food Oil

To say Russia and Ukraine are critical to the world's food supply chain is an understatement. Together they export about 30% of the world's wheat, 60% of the world's sunflower oil (the third-most-traded seed oil behind palm and soy), and about 20% of the world's corn.

Do Russian farmers own their land? ›

Today, roughly 7 percent of the planet's arable land is either owned by the Russian state or by collective farms, but about a sixth of all that agricultural land — some 35 million hectares — lies fallow.

What is Russia known to produce? ›

Primary exports include oil, metals, machinery, chemicals, and forestry products. Principal imports include machinery and foods.

How much of Russia's food is imported? ›

The share of food and agricultural imports to Russia generally decreased during the observed period from 2010 to 2020.
...
Import share of food products and agricultural raw materials in Russia from 2010 to 2020.
CharacteristicImport share
202012.8%
201912.3%
201812.5%
201712.7%
7 more rows
Jun 15, 2022

How much agriculture does Russia have in its GDP? ›

Russia's gross domestic product (GDP) is mainly composed of three sectors: agriculture, industry, and service. Agriculture contributes about 5.6% to GDP, followed by industry and service, which contribute 26.6% and 67.8%, respectively.

Is Russia self sufficient? ›

Thanks to years of preparations, Russia has become far more self-sufficient, and has massive foreign exchange reserves. It has also reopened several companies that were previously under foreign management, like McDonald's.

Why did Russia have food shortages? ›

Food shortages were the result of declining agricultural production, which particularly plagued the Soviet Union. This chart reflects the widespread underproduction throughout the Soviet Republics. Only Ukraine, Belorussia, and Kazakhstan produced a surplus.

Why was Soviet agriculture so bad? ›

Production costs were very high, the Soviet Union had to import food, and it had widespread food shortages even though the country had a large share of the best agricultural soil in the world and a high land/population ratio.

What is the effect of Russia's economic crisis and import ban on its agricultural and food sector? ›

The economic crisis, including the agricultural import ban, has impacted Russian food consumers by reducing their income and food availability, and raising food prices. We mentioned earlier that the crisis lowered Russian consumer income from 2013 to 2016 by almost 8%.

Where does the US get most of its wheat? ›

The primary origin for US Wheat imports is Canada, representing ~ 81% of all US Wheat imports since 18, with 802 kmt.

What food does the US import from Russia? ›

U.S. total imports of agricultural products from Russia totaled $69 million in 2019. Leading categories include: snack foods ($8 million), tree nuts ($6 million), other vegetable oils ($3 million), essential oils ($3 million), and other dairy products ($2 million).

Does the US buy wheat from Russia? ›

Russia – US trade is based on massive natural resources

Territory controlled by Russia is used to produce huge amounts of wheat, corn and other crops.

What does Russia supply to the world? ›

The most recent exports are led by Crude Petroleum ($113B), Refined Petroleum ($81.8B), Petroleum Gas ($37.7B), Coal Briquettes ($19.1B), and Gold ($19.1B). The most common destination for the exports of Russia are China ($70.9B), Netherlands ($39B), United States ($27.4B), United Kingdom ($24.7B), and Italy ($22.2B).

Which industry is booming in Russia? ›

Russian Industry. Russian is a major industrialized country that is continuing to grow as the economy improves. With the end of communism, new industries have become increasingly successful in Russia. These industries include defense, automotive, electronics, finance, telecommunications and energy.

What does Russia sell the most? ›

Russian main exports are energy (oil and petroleum products, gas, coal), rolled steel, ferrous and nonferrous metals and minerals. The greater part of Russian exports belongs to oil and petroleum products.

What are the problems with agriculture in Russia? ›

Food access, recovery of abandoned agricultural land, and the concentration of both land and state support in large agricultural enterprises are then identified as the main challenges.

What vegetables come from Russia? ›

The most widespread vegetables are cabbage, potatoes, and beets. Cabbages were used in shchi (there are over 60 types of shchi), sauerkraut, stewed cabbage, borscht, and pierogies, while beets were most popular in borscht, cold soups, and vinaigrette salads.

What food does Russia export the most? ›

Cereals and legumes were the most exported agricultural commodity from Russia, amounting to over 11.4 billion U.S. dollars in 2021. Fats and oils followed, with nearly 7.3 billion U.S. dollars worth of those commodities exported from the country over the same period.

What is Russia's main food source? ›

FOOD IN RUSSIA

Staples include beets, borscht, salads, cutlets. cabbage, potatoes, buckwheat, mushrooms, beef, lamb, game, sturgeon, grease and vodka. Some of the best dishes are stews and soups such as borscht or spicy fish stew. Good, fresh meat is sometimes hard to get.

Is Russia the biggest exporter of grain? ›

Russia is the largest wheat exporter in the world followed by Canada in the United States. Three countries export more than 20 million tons of wheat: Russia, Canada and the United States. Russia accounts for nearly 24% of the total of the top 20 largest wheat exporters.

What is the condition of agriculture in Russia? ›

Farming in Russia

With nearly 80 million hectares of planted farmland as of 2020, Russia ranks as a major crop producer on the international level. Despite a decline in cattle inventory in recent years, a positive development has been observed in meat production.

How does climate affect agriculture in Russia? ›

Severe and extensive droughts can cause a 40–50% reduction in gross grain yields in major grain-producing regions. Another risk factor is the increased negative impact of pests and crop pathogens.

What are the problems with agricultural? ›

Soil quality, water quality, climate, and terrain are just a few of the environmental issues that may impact profits and productivity for farmers in any given growing season.

Does Russia have a good climate for agriculture? ›

The European part of Russia has warm summers and cold, snowy winters, while the areas in Russia to the east of the Ural Mountains have shorter, cooler summers and longer, harsher winters. This climate is ideal for grain farming, which is one of Russia's primary agricultural activities.

What is Russia's main agricultural products? ›

Agricultural lands occupy 13 % of the territory of Russia (25). Wheat, sugar beet, potatoes and cereals (maize, barley, oats and rye) are Russia's most important crops (20).

Is Russia's economy growing or Shrinking? ›

Russia's economy is slated to grow 1% this year, according to JPMorgan Chase & Co. Or shrink 2.5%, if you ask the Organization for Economic Cooperation and Development.

How much of Russia is farmable? ›

The most fertile regions are in the southern parts of the country between Kazakhstan and Ukraine called chernozem ("black earth") in Russian. Just over 7% of the country's total land is arable, 60% of which is used for cropland and the remainder for pasture.

What are 5 negative effects of agriculture? ›

Public health impacts of agricultural practices
  • Water pollution. ...
  • Air pollution. ...
  • Climate health and greenhouse gas emissions. ...
  • Antimicrobial resistance. ...
  • Food system vulnerability.

What are the problems with agriculture in 2023? ›

Specialty Crops: Drought, Labor Shortages, Strong Dollar Among Headwinds. Specialty crop growers and processors face a multitude of headwinds in 2023. Costs of water, labor, fertilizer and other inputs are rising while a strong U.S. dollar and weakening global economy drag on the U.S.'s ability to sell products abroad.

What is the difference between farming and agriculture? ›

Agriculture is covering a vast area, including production, research and development, and farming is implementing agricultural activities. Also, it is the science or function of farming, including cultivating the soil for growing crops and the rearing of animals to provide food, wool, and other products.

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