THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
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Agriculture, which is seen as one of the most important sectors in the Russian economy, is also considered among the driving forces of economic growth by the country’s authorities.
Following the collapse of the Soviet Union, the agricultural sector, which experienced a significant decline, as in most areas of the country, entered a recovery process in the 2000s.
In addition to the incentive steps taken by the state for agriculture, the Russian agricultural sector has reached a position described as ‘even more profitable than oil’ in some parts of the country with the addition of the counter-sanctions imposed on Western countries in 2014.
Russia’s domestic agriculture mobilisation…
It was only in the 2000s that the Russian government took concrete steps on how to utilise the vast agricultural lands after the collapse of the Soviet Union.
The most important move to reduce food imports in this period is considered to be the ‘New Land Law’, which was enacted in 2001, allowing the establishment of private farms similar to those in Western countries.
However, as developments in the country’s agricultural sector have not progressed at the expected level, the Russian government announced a new agricultural programme in 2012, offering farmers low credit, fertiliser at floor prices, support for domestic agricultural machinery manufacturers and the transfer of state-owned financial resources for the development of agricultural infrastructure.
According to data from the Russian Ministry of Agriculture, the country’s total agricultural production has soared by 87 percent since 2000, with grain and meat production doubling in the period in question.
This year, the country plans to harvest 132 million tonnes of grain, one of its most important export crops, and export 60 million tonnes.
Four state programmes stand out in agriculture…
The Russian government is implementing four programmes, including the development of agricultural production and regulation of the agro-industry, the fishing industry, the regulation of rural areas, as well as active participation in the turnover of agricultural land and the development of land reclamation.
The Russian Ministry of Agriculture is also involved in two national projects, ‘International Cooperation and Export’ and ‘Support for Small and Medium Entrepreneurship and Individual Entrepreneurship’.
State financing for the agricultural sector has increased from 18 billion rubles (about 197 million dollars) in 2000 to 558 billion rubles (about 6.1 billion dollars) in 2024.
State at the centre of agriculture…
While the state is at the centre of Russia’s agricultural development, large farms and agricultural enterprises are run by the private sector.
Rosselhozbank, the country’s agricultural bank, also supports the sector with financial interventions. Established in 2000, the bank’s investments in the agricultural sector until 2020 reached 9.4 trillion rubles (approximately 102 billion dollars).
The food sanctions that Russia has imposed on Western countries since 2014 have especially benefited meat, dairy and vegetable product producers in the country.
Within the scope of the sanctions, imports of agricultural and food products from the European Union, the United States, Australia, Canada and Norway were significantly banned, while Russia’s dependence on raw materials for agriculture from these countries also decreased.
However, some Russian experts share the view that using sanctions for the development of the agricultural sector and preventing the public from accessing quality products cannot be a long-term strategy.
At the same time, it is stated that these products cannot always be replaced and this has a negative impact on food inflation.
It is also emphasised that if the sanctions are lifted and the market is opened to everyone, it is not yet clear what strategy the Russian government will adopt and whether the support given to the farmers in the country will be long-term.
‘Food Security Doctrine’
Within the scope of the ‘Food Security Doctrine’ implemented by the Russian government for food self-sufficiency, grain production was 159 percent of the level required in 2022.
Potato production was 95 percent, fruit production 60 percent, meat production 100 percent, milk production 84.3 percent and seed production 63.4 percent.
According to experts, while Russia ensures food security to a significant extent, various obstacles in the agricultural sector prevent the country from developing further in this field.
The most important of these is the problem of access to technological products produced by Western countries due to sanctions, while the labour shortage due to the Ukrainian War stands out as another difficulty.
The underpopulation and harsh climatic conditions in many regions of Russia, the world’s largest country in geographical terms, which are favourable for agriculture, are also among the problems in the progress of the Russian agricultural sector…
