Agriculture in Russia is experiencing a remarkable recovery, writes the German magazine Der Spiegel.
After the collapse of the Union of agricultural land in Russia was in decline, investors are avoiding to invest in the agricultural sector, preferring the commodity industry. Since 1992 Russia has lost about 35 million hectares of arable land, which is almost equal to the area of Germany.
But in 2014 the situation changed.
“Recently, the share of agriculture in the Russian economy increased, contrary to global trends. Last year Russia for the first time earned on agricultural exports more than the sale of arms”, — writes the edition.
One reason for this boom has been an embargo on food supplies from Europe. However, the highest rates evident in those areas of the agricultural sector, which has long gone to the world markets.
Thus, grain yields are growing since 2010, and in 2015, Russia harvested more wheat than the United States. This year the grain harvest a record – at least 110 million tonnes. The driving force remain large agricultural holdings.
More competitive Russian goods makes and the low exchange rate, contributed to the high demand for crops and poultry. However, despite the absence of European competition, the production of vegetables in Russia increased only slightly, from 14.7 million tons in 2013 to 16.1 in 2015.
Area of concern remains the milk market for many years in crisis, writes Der Spiegel. According to experts, the Russian producers will need 8-10 years to reach the world level. It is desirable that the government cancelled the embargo, otherwise foreign competition would be too strong.
