Growth of production volumes and profitability: RUSSIA EXPO assessed the prospects for the development of the agro-industrial complex

The RUSSIA EXPO is hosting the National Achievements Forum: Agriculture. Russian Minister of Agriculture Dmitry Patrushev spoke about the major changes that have taken place in the industry in recent decades and the vectors of its further development.

He noted that since the beginning of the century the Russian agro-industrial complex with the support of the President has managed to transform from import dependence to self-sufficiency and later to the status of a net exporter. The fundamental legislative step for this was the adoption of the Federal Law "On the Development of Agriculture". Later, in 2010, the Doctrine of Food Security was developed, which over time has been transformed to meet the current situation.

To date, the efforts are carried out within the framework of four state programs aimed at the development of agricultural production and regulation of markets in the agro-industrial complex, fishery complex, rural areas, as well as the effective involvement in the turnover of agricultural land and the development of land reclamation. In addition, the Ministry of Agriculture is a participant in two National Projects: "International Cooperation and Export" and "Small and Medium-sized Entrepreneurship and Support of Individual Entrepreneurial Initiative".

Thanks to such a systematic approach to the development of the industry, stable state support and the labor of agrarians, agricultural production in Russia has almost doubled since 2000. Our country is among the world leaders in grain production and export. Other crops are also growing steadily: sunflower, rapeseed, soybeans, vegetables, sugar beets and potatoes. 

Speaking about the development of animal breeding, the Minister emphasized that back in 2000 self-sufficiency in meat and meat products was only 67%, with almost 60% of meat from households. Since then, the situation has changed, and the meat sector has doubled its indicators. Since 2022, Russia has reached one hundred percent sufficiency, with 85% of the volume coming from the organized industrial sector.

Owing to the decisions of the country's leadership, other sub-sectors of the agro-industrial and fishery complexes are also developing dynamically. As a result, today the key indicators of the Food Security Doctrine are either already fulfilled or we are steadily approaching the established benchmarks.

According to Dmitry Patrushev, the financing of sectoral state programs is growing annually. For example, the agricultural industry in 2000 received 18 billion rubles, in 2018 our total volume for four programs has already amounted to 266 billion rubles, and 558 billion rubles are planned for this year. The head of the Ministry of Agriculture outlined the work under each program, the support measures provided and the results achieved.

For example, the State Program of the agro-industrial complex provides for the widest range of measures available to both large businesses and SMEs. This has a positive impact on the volume of production and profitability of agricultural organizations. For example, the share of profitable companies in 2000 amounted to 47%, and today it is 86%.

By order of the President, since 2020 the Ministry has been implementing the state program "Comprehensive Development of Rural Areas", which has already allocated 250 billion rubles. During this time, almost 4 thousand social facilities and 1.5 thousand kilometers of roads have been renovated. More than 12 thousand improvement projects have been implemented, almost 9 million square meters of housing has been commissioned through special instruments such as "rural mortgage" and construction of housing for rent. 95 thousand permanent jobs were created. And the total coverage of the state program activities amounted to about 12 million people.

The state program for the development of the fishery complex has been in effect since 2014. It has in particular made it possible to ensure a stable catch of aquatic bioresources - since 2018, the volume has been approximately at the level of 5 million tons.

This is fully sufficient both for the domestic market and for the development of exports. In addition, the development of aquaculture is being stimulated - this area has doubled in 10 years.

The funds of the state program "Effective Involvement of Agricultural Land into Turnover and Development of Land Reclamation Complex", which started in 2022, are allocated, among other things, for projects to improve soil fertility and protect it from abandonment, for the renewal of the land reclamation fund, for surveying and cadastral works. As a result, about 1 million hectares of land have been put into turnover over the past two years.

Dmitry Patrushev dwelt in detail on the development of export potential of the agro-industrial complex, noting that Russia's role in international markets has changed dramatically. In 2000, export revenues amounted to 1.4 billion dollars, and in 2023 they will exceed 45 billion dollars. During this time, the geography of exports has noticeably expanded. Whereas two decades ago our products were mainly supplied to CIS countries, now significant volumes are sent to South America, Africa and Southeast Asia. Russia is a major and, in many respects, stabilizing supplier in the world market for a whole range of agricultural products. Our country ranks first in wheat and fish exports, second in external supplies of cereals and legumes in general, as well as trade in sunflower and rapeseed oil, and third in barley. Since 2020 Russia retains the status of a net exporter of agricultural products and is a reliable partner for many countries.

Among the key tasks for the future the Minister named the development of breeding and genetics, as well as biotechnology - production of enzymes, vitamins and amino acids. Within the framework of the Government's initiative "Agrarian Science" it is planned to create at least three agro-biotechnological parks with their own specialization. Last year, the first such project appeared in the Belgorod region, and it focuses on the production of enzymes for food and fodder. The necessary steps are also being worked out in other areas of biotech. In general, according to the estimates of the Ministry of Agriculture, by 2030 it will allow to fully provide for itself in a number of positions.

Dmitry Patrushev emphasized that the attention of the President, the course of the industry development outlined by the state, consistent support and, of course, exceptional professionals - Russian agrarians - give confidence in achieving the set goals.