Russia exports significantly more agricultural products

Russia has exported significantly more agricultural products since the start of the year. The export value through March 21 stands at $6,2 billion, compared to $5 billion a year ago during this period. Turkey in particular is an important buyer of Russian products. This will knock China off the throne.

The Russians report that the value of agricultural exports has grown sharply since the start of the year. Where $1 billion was exported between January 21 and March 5 last year, that amount is now $ 6,2 billion. The growth is mainly due to the export of grains, bringing the export value to $2,5 billion. But the export of meat and dairy products is also on the rise. The total export amount currently stands at $205 million.

A lot of export to Turkey
The largest buyer of Russian agricultural products is Turkey. The country is replacing China, which has always led the list of largest buyers in recent years. The Turks have already imported $991 million worth of Russian food products. That is an increase of 47% compared to a year earlier. China has so far been stuck at $963 million. 

There are 2 reasons why exports are going so well. Firstly, it is due to the opening of new markets abroad and secondly, Russia is experiencing a significant expansion of the range of export products. The fact that the ruble was somewhat weaker against other currencies also played a minor role. 

Opportunities and threats
For the longer term, there are negative expectations for dairy exports. Artem Belov, director-general of the National Union of Milk Producers, says the tariffs on imports to China are at 10% to 20%. "This is only 0% to 5% for many other countries." Russia itself is also undergoing many changes. "There is a need to modernize the agricultural sector. In addition, much more support is needed for export-oriented processing plants," said Belov.

The greatest opportunities in the coming period lie in the export of Russian poultry meat. Its exports grew by 31% in the past period, the largest growth of all agricultural products. China in particular asked for Russian poultry meat in recent months. One problem, however, is that there is a lack of poultry products in the domestic market. So it remains to be seen whether the Russians can really take advantage of the opportunity.

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