"A record wheat crop in Russia threatens American farmers" reports Wall Street Journal. Our observer Nailia Asker-zade has the details.
- Good evening, Nailia. The rapid growth of our agriculture is a well-known fact. But how does that interfere with the Americans?
- Igor, Russia managed to become the world's main wheat exporter thanks to the program of import substitution, investments and the weakening of the ruble. In the meantime, the US is experiencing a crop failure.
Alexander Tkachev, Russian Minister of Agriculture: "Well, ask the American farmers, it's their problem. If they start shaking in their boots upon seeing our super-crop which is going to be approximately 130 million tons and about 83 million tons of wheat. It's clearly a record".
Some regions are not yet done with harvesting, so our totals are going to be even higher. But even now it's clear that by the wheat crop world export Russia will surpass not only the US for the first time, but also our second major contestant — the combined EU nations.
US crops, however, have broken record lows. The summer drought and the bad weather in the spring played against the American farmers. The grain prices in Chicago have decreased by 25% since July. The US is closing its American Wheat Association offices in Egypt. These prices are not profitable for them.
But we still manage to make a profit, even at such low world prices.
According to Tkachev: "We manage to push aside the Americans in some markets. They are losing money and we are happy about that because in this case, our farmers get richer. Our current goal is to establish acceptable prices across the whole Russia".
- Now, are we planning to increase our crop yields next year?
- Yes. Over the past five years the yield has already increased by 70%. Today's volumes are a 100 year record. Alexander Tkachev is certain that we have still not hit our upper limit — Russia is able to harvest 150 or even 200 million tons. Our main task is to find new markets and engage in the extensive processing of grain within the country. Prospective places to expand include the markets of Southeast Asia, Indonesia, China, Morocco. It's not just wheat exports that are being grown, but all major crops including barley and corn.
- How are relations with our Turkish partners?
- The Ministry of Agriculture hopes to find a compromise in the near future with Turkey removing all import restrictions on agricultural products.
Thank you. Nailia Asker-zade with her report on Russia’s agricultural boom.
