Russia to set export record

The export value of agricultural products from Russia will set a record in 2017. The value is expected to exceed $20,5 billion. In 2016, the export value still amounted to $17 billion.

Agricultural exports remain the main driver of agricultural sector growth, according to Andrei Sizov (director of the Analytical Center 'Sovekon'). "However, despite an increase in production in many agricultural sectors, this sector will add no more than 2% to 3% to world trade."

modest result
Compared to last year, this is a modest result. The Russian agricultural sector showed a 5% increase last year. This year's decrease is partly due to a strong ruble and low prices due to a record harvest of the basic grains.

In addition, the growth of investment activity in agriculture is also slowing down and may be only 2%. This has to do with the stabilization of consumer income.

Small share in world market
Although the export volume of agricultural products increased, Russia's share of the world market remains insignificant. The main Russian export commodity (grain) occupies only 6% of the world market. The other products also have only a small share; fish and oil come in at less than 3% and meat comes in at less than 1%. In comparison, the world's largest exporters (the United States and the European Union) recorded export values ​​above $2016 billion in 130. 

However, over the next 10 years, global trade growth is expected to slow. In the period 2005 to 2015, the export volume of pork increased by 41%. Pig imports are expected to be no more than 2016% in the period 2026 to 1. Wheat imports will also drop considerably; from 68% to 10%. On the other hand, the import figures of dairy products remain quite high. In 2005 to 2015 this amounted to 41%, for 2016 to 2026 a percentage of 23,5% is expected.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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