Positive salute protectionism
09.09.2016
Industrialist Konstantin Babkin shares his impressions from his participation in the meeting with Dmitry Medvedev in Astrakhan …
Took part in the meeting on agriculture.
Good meeting. Liked. Agriculture will continue to grow and develop.
Rhetoric in the field of agriculture is now mainly based on real values, a healthy dose of protectionism. The government aims positively. However, there is nothing to debate.
Dmitry Medvedev: Agriculture feels good. And in all regions. I had a discussion with farmers producing vegetables. They are asked not to ease the sanctions. (Note as a positive salute protectionism).
Matures big grain harvest, grain prices are down. So we decided on two years to zero export duties on grain. (Too positively. It would be nice, however, to abolish these duties forever. In America, such duties are forbidden to enter by law. The best way to ensure the country’s grain – a powerful production. We need to encourage investment, to fight for markets, and not to limit periodically the profitability of duties and other brakes).
Continue with the help of grain interventions to deal with seasonal price fluctuations. (Fluctuations in prices for agricultural products are seasonal (fall cheaper in the spring more), per annum (yielding a bad year), long term (soil depletion, climate change, technology development). Seasonal fluctuations can cope farmers and commodity merchants, time selling or holding the products, and thereby smoothing out the fluctuations. Interannual fluctuations it is necessary to insure, rather, should pursue a policy of guaranteeing farmers in case of natural disasters they will not go bankrupt. Long-term fluctuations need not be smooth and to ensure the systematic growth of production of the whole policy of the state: to encourage investment, provide market access, build roads, hospitals and schools, to encourage improvement and research activities. Intervention, in my opinion, in this sense, the thing is useless).
We will encourage vegetable growing. Vegetables need to pack, store, deliver, provide access to the shelves, mostly on the shelves needs to be vegetables of the region concerned. (In the suburbs this year’s wild crop of apples. The apples are falling and rotting on the ground, on the shelves in stores are imported. Paradox. Processing of vegetables, greens and fruits should definitely be done best. Need protectionism, subsidies and tax incentives).
Restrictions on excessive imports will continue. For farmers, we will do everything. Agriculture is the labor of millions of people. (Good!)
Remain excessive dependence on the supply of seeds. Will support breeding and seed production centers. (Also happy. Seed production is a laborious work, which need to continuously for years and decades. Support, respectively, also must be reliable and continuous. Ignoring, in particular, the requirements of the WTO).
The program of subsidizing the sales of agricultural machinery is greatly needed. Will try to save it. (Oh! Yay! Agricultural machinery will continue to develop!).
Subsidies to farmers need to bring faster. We encourage the purchase of fertilizers and fuel.
Alexander Tkachev:
To develop each region. Have a good harvest. The main source of income agriculture is the export. However, there is still a lot of work. Russia under the Soviet regime had grown to 127 million tons of grain. The average yield was 17 t/ha. of arable land Now used on 20% less, but the yield increased to 24 kg/ha. While half the country does not use fertilizers. For 5-7 years we need to increase the yield to 30 t/ha will encourage the return of lands in agricultural rotation. And will produce 170 million tons. This is achievable. China grows 507 million, the US – 428 million tonnes. The export will send 60 million tons, revenues from grain exports will exceed the revenues from the sale of oil.
Will increase soybean production. Now we import 2 million tonnes.
Will improve the availability of seeds. To 20 years will create 67 breeding centers.
(Just not argue with it. A serious program. And all it really can do. Farmers can start making real money).
Delivered live or via conference calls several governors. Everywhere it develops, noted a decent level of Russian agricultural machinery.
Sergei Sobyanin said that the share of Russian products on the shelves has grown considerably, the products quality is better than imported. Expressed concern that the abolition of duties on grain exports will lead to a rise in price of bread. (Vain fears. First, much above the world price of grain to rise not can. Second, the price of grain and the price of bread are two different things. The cost of grain accounts for about 7% of the price of a loaf on the counter store in Moscow. And if the loaf will rise in price, it is likely from the activities of the Central Bank or tax authorities. Thirdly, if we want to be secured, the bread, we must make its production more profitable and not to take away duties and other mechanisms of money from those who produce it. The same applies to any other product).
I thanked the Prime Minister for support. Due to the fact that he identified at the beginning of the year, the money to Finance subsidies to farmers for its purchase, the equipment has become more accessible. Farmers this year to buy cars a third more than in the past. The share of Russian manufacturers in the market increased. We currently hold more than half of the market. Three years ago took less than a quarter. A growing number of enterprises, groups grow, rising wages, knuckles number of types of manufactured equipment, increasing the quality and range.
Because funding will continue, machinery will be developed.
In conclusion, the Prime Minister said that the money now get difficult, and support should be appreciated.
Very much appreciated.
Tell the agricultural machinery manufacturers: tell them to prepare for next year a lot of work.
Konstantin Babkin, the co-chair of the Moscow economic forum, President of Industrial Union “New Commonwealth”, the Chairman of the Federal Council of the Party Affairs, the President of the Russian Association of agricultural machinery manufacturers “Rosagromash”
