Background Russia
Russia's agriculture minister has big plans
Since May 2018, the new minister Dmitry Nikolayevich Patrushev has held sway over the agriculture ministry in Russia. This man has ambitious plans and could have a strong influence on the global grain market. What does he want to change?
The position of agriculture minister is a very important position in the Russian government. The country is increasingly developing into an agricultural superpower, making the sector more and more the country's pride. Patrushev has indicated that he wants to further expand this position in the coming years.
The new, young and ambitious minister is the son of the former director of the Russian Intelligence Service (FSB). The FSB is the successor to the KGB and the director of this intelligence service reports directly to President Vladimir Putin. As a result, the family has close ties with the president.
The new minister is therefore not afraid to make bold plans for the Russian agricultural sector. This can be seen, among other things, in the fact that the state subsidy for the agricultural sector will exceed the 2019 billion ruble mark in 300, which translates into approximately €4 billion.
Export growth
Patrushev's first goal is to distribute that subsidy amount fairly. He also wants to increase the export of agricultural products, which is very important for the agricultural markets. Several steps have already been taken to achieve these points; for example, the phytosanitary service in Russia (Rosselkhoznadzor) wants to raise the standards for grain exports to the highest international standards.
In addition, ties with China, Turkey and several African countries are being strengthened, in order to be able to serve these markets as well. The trade war between the United States and China is, of course, an excellent fit.
Increase Yield
patrushev hopes that at least 2036 million tons of grain will be harvested by 150. The minister recently explained this to Reuters. "In 2020, 118 million tons should be harvested, in 2022 almost 125 million tons and in 2024 about 137,5 million tons." That is also the reason for expanding the acreage, and Russia is doing this mainly by reclaiming land.
The minister also wants to greatly improve the infrastructure in the country and make the countryside more attractive. In addition, the minister wants to focus on technical and scientific development, because there is a lack of own seed breeders in Russia.
Important player
It is expected that Russia will become an increasingly important player in the grain market. That is noticeable even now. When the Russian Ministry of Agriculture says that exports will be restricted, it is of influence on prices.
Anne-Jan Doorn
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