How big is russia’s agricultural sector


Russia’s agricultural revenues grew 4% in 2019 to $91 billion. Crop production increased by 6.1%, while livestock production increased by 1.6% compared to 2018.Oct 15, 2021


What is the share of Agriculture in GDP in Russia?

As non-agricultural sectors grew more rapidly after the collapse of the Soviet Union, the share of agriculture in total GDP in Russia decreased from 14.3% in 1991 to 4% in 2011. The agricultural sector accounted for 6.71% of total employment in 2015.

What is the evolution of Agriculture in Russia?

The evolution of Russian agriculture since 1990 shows a significant change of resources and production from the formerly dominant corporate farms to the individual farming sector.

How much fixed capital is invested in agriculture in Russia?

Investments in fixed capital within the agricultural sector were US$10.17 billion in 2010, which is 3.3% of total investments in the national economy of Russia. Most investments occurred in corporate farming, where about 47.2% of the investments were allocated to production buildings and 36.4% in machinery and technological equipments.

Where do most of Russia’s agricultural activities take place?

Most of Russia’s agricultural activities are located in the European part of Russia (before the Ural Mountains). Meanwhile very little is known in the West about the historic agricultural development of the Asian part of Russia, which covers approximately 77% of the Russian territory or 13 million km 2.


How big is Russia’s agriculture?

Agricultural lands occupy 13 % of the territory of Russia (25). Wheat, sugar beet, potatoes and cereals (maize, barley, oats and rye) are Russia’s most important crops (20).

How much agriculture is in Russia?

Just over 7% of the country’s total land is arable, 60% of which is used for cropland and the remainder for pasture. Geopolitical analyses of climate change adaptation foresee large opportunities for Russian agriculture during the rest of the 21st century as Siberia’s arability increases.

What percentage of Russian economy was agriculture *?

The latest value from 2020 is 3.7 percent.

Where does Russia rank in agriculture?

Given the climate characteristics of the region, fruit and berry production is somewhat limited. However, grain and livestock farming are broadly developed, which is reflected in the country’s high self-sufficiency levels for such products. Furthermore, Russia listed fourth by wheat production globally as of 2019/20.

Is agriculture in Russia highly advanced?

Since 2012, Russia’s agriculture is the most steadily developing sector of the national economy. Production of selected crops is reaching historical records. Today, Russia is a world champion for export of wheat and buckwheat and amongst the top ten in terms of export of many other crops.

Does Russia grow all its own food?

Russian food self-sufficiency 2000-2020, by product category As for the remaining listed categories, the country accounted for nearly absolute self-sufficiency for each, except for fruit and berries. National production of the latter was only sufficient for about one-third of the total demand in Russia in 2018.

What is the most important industry in Russia?

The services industry is the most important sector of the economy of Russia. It includes a wide variety of specific economic activities, including: real estate, tourism, healthcare services, marketing, financial service, wholesale, retail trade, and personal and household goods.

What is Russia’s main export?

Crude oilCrude oil is Russia’s biggest export, accounting for $123 billion of its export revenues. The war in Ukraine has focused attention on Russia’s global exports. Russia is a key supplier of not just oil and gas, but also wheat, metals and fertilizers.

What percent of population was engaged in agriculture in Russia?

In 2019, 5.83 percent of the workforce in Russia was employed in agriculture, 26.79 percent in industry and 67.38 percent in services. The majority of Russia’s labor force works in the services sector, which accounts for more than half of the jobs in the country.

Which country is No 1 in agriculture 2021?

China is the world’s largest grain producer, yet has grown more dependent on food imports in recent decades. Much of India’s output is produced by subsistence farmers and consumed locally. The U.S. is the world’s top food exporter thanks to high crop yields and extensive agricultural infrastructure.

Which country has the highest agricultural production?

China1. China. China has 7% of the arable land and with that, they feed 22% of the world’s population.

Which country has best agriculture system?

1. UNITED STATES. The major exporter of food, the US has the largest agriculture industry with the most developed and highly efficient agriculture.

What is Miratorg Agribusiness?

Miratorg Agribusiness Holding – a privately held company based in Moscow focusing mainly on meat production, was the largest agricultural company by turnover and by farmland ownership in Russia as of 2019.

How much grain is produced in Russia in 2024?

The steadily growing cereal and grain production levels are expected to reach roughly 134 billion metric tons by 2024. With over one-fifth of global oat production and a total of nearly 80 million hectares of planted farmland as of 2018, Russia ranks as a major crop producer on an international level. Despite the decline in the cattle count in …

What is the production target for Russia in 2020?

State production targets for livestock and poultry slaughter in 2020 were set at 14.4 million metric tons. The national consumption levels of major agricultural products in Russia have been fairly stable. Grain was leading by consumption levels, with wheat the most demanded type.

Which country has the largest landmass?

Published by A. Melkadze , Sep 24, 2020. Russia as the largest country by landmass worldwide is also in possession of a vast area for agricultural activity. Given the climate characteristics of the region, fruit and berry production is somewhat limited.


Russian agriculture has been one of the fastest growing segments of the economy in recent years with gross output up 2.4 percent in 2017, as the Russian economy emerged from a two-year recession.

Global Agricultural Information Network (GAIN)

Insight and analysis from FAS’s overseas offices on issues affecting agricultural production and trade.

What is the Russian packaging industry?

The Russian packaging market consists of the following segments: metal (10%), glass (12%), soft plastic (21%), hard plastic (21%), paper, and cardboard (36%). There are currently more than 2,000 companies involved in the packaging process and about 900 companies involved in the production or distribution of packaging machinery. Russian food and food processing industry enterprises often buy equipment directly from manufacturers, and large businesses enterprises typically prefer new, imported equipment. Less expensive, second-hand models are often purchased by small- and medium-sized businesses.

What is Russia’s growth?

Russia’s growth is stimulating investment and innovation not only in equipment but also in product development. The fast-moving consumer goods (FMCG) segment has remained the most stable sub-sector with an 80% share of food products. Additionally, the demand for packaged products is expected to increase and reach 29 million tons by 2020.

How many food processing companies are there in Russia?

Food production and processing represent a key component of Russia’s economy. As of 2019, there were more than 22,000 food processing companies operating in Russia, employing an estimated 2 million people (Source: Agroprodmash-expo). Over the last three years, Russia’s food processing has grown by an annual average of five percent. Globally, Russia has the eighth largest market for packaged food products. In 2019, revenues from Russia’s food and drink processing sectors reached $102.4 billion. Food production turnover increased 6.5 percent from 2018, while the beverage sector increased 11.9 percent.

What is the largest grain in Russia?

Grain harvest in Russia in 2019 increased by 6.5% compared to2018 and amounted to 120.6 million tons. In 2019, Russia was the world’s largest producer of barley ; the third-largest producer and the largest exporter of wheat; the second-largest producer of sunflower seeds; the third-largest producer of potatoes and milk; and the sixth-largest producer of eggs and chicken meat.

When was the use fee introduced?

A “utilization” fee introduced in February 2016, which imposes prohibitive fees for agricultural equipment older than three years.

Is Russia dependent on imports?

However, Russia’s agricultural machinery market remains highly dependent on imports. In 2019, the share of the imported machinery accounted for 42% (2% growth from 2018). In the total number of tractors produced in Russia in 2019, the share of Russian brands was 51.1%. The rest 48.9% were tractors assembled in Russia from foreign-made parts, 26.9% of which were products of Minsk Tractors Plant (Belarus), 4,6% — of Kharkov Tractors Plant (Ukraine), and 17.4% belonged to foreign brands such as John Deere, Claas, Versatile, New Holland, Agrotron, Axion, and Xerion.

Does Russia have subsidies?

Since 2013, Russia has maintained several federal programs offering subsidies to local equipment producers. However, there have been concerns that not all manufacturers receive equal treatment under the law and certain foreign-headquartered producers are excluded from these programs, despite having localized manufacturing. Overall, from 2013 to 2019, the production of agricultural machinery in Russia increased 3.4 times, the share of locally produces machinery increased 2.2 times and amounted to 58% in 2019 (Source: Rosspetsmash).

Russia Restricts Grain Exports Amid Pandemic

The development of the sector has been helped by the Kremlin’s decision to impose tit-for-tat sanctions on the EU, banning all agricultural imports to Russia following the EU’s decision to impose sanctions on Russia after it annexed Crimea in 2014.

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Independent media outlets and journalists in Russia are being increasingly targeted with “foreign agent” and “undesirable” labels, threatening the existence of the free press day by day.

What is the Russian government doing to unlock Russia’s potential?

Thus, the Russian government has begun taking steps to start to unlock Russia’s potential within the global industry. As such, major plans to accelerate growth of non-resource exports and its intention to support this business were announced. Moreover, the Ministry of Agriculture is developing export support programs that are to be sponsored by the government, such as capital expenditures recovery, concessional financing, subsidizing of logistics costs and implementation of joint investment projects with businesses. The Russian Export Center offers a wide range of services to promote Russian goods in cross-border markets.

What is the role of global food consumption and production in Russia?

These enterprises acquire existing corporate farms and vertically integrate them, combining primary production, processing, distribution, and sometimes retail sales. Such a vertical structure helped them to reduce costs caused by the market and infrastructural deficiencies faced by Russian farms.

What did Russia import?

While becoming part of the global agricultural economy implied expanding technology transfer and foreign agricultural investments, Russia started to import seeds, livestock and Western farm machinery. While these imports were opening up new market opportunities, it was to be expected that producers would respond to them for the purpose of improving the efficiency of their operations.

How much food did Russia export in 2017?

As such, in 2017 Russia generated USD 20.7 billion in exports followed by President Putin’s announcement of Russia’s new ambition: USD 45 billion of food exports by 2024.

What happened to the Soviet Union in the 1950s?

As the situation became more stable in the 1950s, the Soviet government enacted the ‘Virgin Lands’ campaign. In the decade that followed, 13.6 mha of land was ploughed in Asian Russia alone, demonstrating the country’s massive potential in terms of agricultural production. Yet, there was another watershed moment around the corner that was about to shake this positive trend – the dissolution of the Soviet Union in 1991 and disintegration of the state-command economy. Subsequently in the 1990s most cropland and managed grassland was abandoned. Cropland acreage and livestock numbers have not recovered to pre-1991 levels (according to Federal State Statistics Service figures from 2016).

How much corn did Russia produce in 2015?

Russian corn yields increased by almost 50% during the same period reaching 4.93 tons per hectare in 2015. However, such seeds consistently provide the expected uniform characteristics and high yield performance only during the first harvest.

What percentage of the world’s grain is exported to Russia?

Russian fields produce 10-13% of the world’s total grain exports and 20-23% of global wheat exports. Yet, due to the fact that the food processing industry remains greatly underdeveloped, Russia has to import most of its refined food. Russia now faces an important strategic choice.

What was the Soviet Union’s economy like in the 1950s?

Beginning in 1928, the course of the Soviet Union ‘s economy was guided by a series of five-year plans. By the 1950s, the Soviet Union had rapidly evolved from a mainly agrarian society into a major industrial power. By the 1970s the Soviet Union entered the Era of Stagnation. The complex demands of the modern economy and inflexible administration overwhelmed and constrained the central planners. The volume of decisions facing planners in Moscow became overwhelming. The cumbersome procedures for bureaucratic administration foreclosed the free communication and flexible response required at the enterprise level for dealing with worker alienation, innovation, customers, and suppliers.

What are the characteristics of the Russian economy?

The Russian economy is volatile. Since 1989 its institutional environment was transformed from a socialist command economy to a capitalistic market system. Its industrial structure dramatically shifted from over-investment in manufacturing and agriculture to market services and mining, especially oil and gas. Richard Connolly argues that for the last four centuries, there are four main characteristics of the Russian economy that have shaped the system and persisted despite the political upheavals. First of all the weakness of the legal system means that impartial courts do not rule and contracts are problematic. Second is the underdevelopment of modern economic activities, with very basic peasant agriculture dominant into the 1930s. Third is technological underdevelopment, eased somewhat by borrowing from the West in the 1920s. And fourth lower living standards compared to Western Europe and North America.

What percentage of Russia’s GDP is natural resources?

In 2019, the Natural Resources and Environment Ministry estimated the value of natural resources to 60% of the country’s GDP. Russia has one of the lowest external debts among major economies, and ranked among the “very easy” countries in the Ease of Doing Business Index.

How many times has the Sukhoi Superjet 100 been ordered?

The Sukhoi Superjet 100 is one of Russia’s most recent civilian aviation products. The regional passenger plane was ordered around 280 times for various airlines and leasing companies as of 2018

What is Russia’s largest industry?

Russia’s large automotive industry ranks as the world’s tenth-largest by production. It has a large and sophisticated arms industry, capable of designing and manufacturing high-tech military equipment, and is the world’s second-largest exporter of arms, behind only the United States.

How did Russia bounce back from the financial crash?

Russia bounced back from the August 1998 financial crash with surprising speed. Much of the reason for the recovery was the devaluation of the ruble, which made domestic producers more competitive nationally and internationally.

What is Russia’s economy?

The economy of Russia is an upper-middle income mixed economy, with enormous natural resources, particularly oil and natural gas. It is the fifth-largest economy in Europe, the world’s eleventh-largest economy by nominal GDP and the sixth-largest by PPP .


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