Russia strengthens position on global food market
There's a world of opportunities for investors in Russia's agriculture commodities market with farming in the country flourishing under international sanctions.
Following the Western penalties imposed on Russian companies in 2014 and subsequent countersanctions introduced by Moscow in response, some local officials took the opportunity to boost the development of domestic production. Many Russian enterprises managed to encourage import substitution and made exports more competitive.
Last year, Russia managed to gain the world’s lead as an exporter of grain, after shipping 34 million tons out of its record crop of 119 million tons. Apart from grain, Russian farmers have completely substituted imports of chicken and pork with domestic production. Agricultural goods have become Russia’s second biggest export after oil and gas.
Besides increased government subsidies to farmers, the sector has also benefited from Russia’s geographical position.
Russian agriculture and associated industries have huge potential for further growth as increased earnings allow farmers to invest in technology and more fertilizers to boost productivity.