PRESS: Russia’s grain exports lag 5% on yr, to grow in early 2017

MOSCOW, Nov 18 (PRIME) -- Russia’s grain exports have contracted by 5% on the year, but will grow at the beginning of 2017, Agriculture Minister Alexander Tkachyov said in an interview to Izvestiya daily published on Friday.

“For now, grain exports are lagging 5% behind the previous year’s figures, but everything may change at the beginning of next year,” he said.

He added that the exports also contracted year-on-year but caught up in February and later grew significantly.

“We have the same dynamics this year, which means that producers are not eager to sell under current prices and are waiting for the spring,” he said.

“I am sure that the export activity will pick up in line with the world prices.”

But Russia has no goal to increase grain exports. “We are interested in securing the needs of the internal market in the first place, and only then we will expand the geography of supplies and increase revenue,” he said.

He added that the ministry forecasted grain exports of 40 million tonnes from July 1 through June 30, 2017, the amount the country is technically able to export.

Russian agriculture producers would like the country to prolong its food import ban for five years, but lifting of the embargo even in two years will not hurt agricultural production. “Domestic producers have already occupied the free niche and ensured consistent supplies of quality dairy and meat products, fruit and vegetables to the local market,” he said.

“Moreover, our agricultural producers have already ensured the internal market’s provision of some products, and are increasing export volumes of Russian food and agricultural products,” he said.

He added that European farmers will have tough time competing with local suppliers on the Russian market when the restrictions are lifted.

In 2014, relations between Russia and the West deteriorated to their worse since the Cold War due to a military conflict in Ukraine. The West introduced sanctions against some Russian individuals and firms and further against the energy and banking sectors. In response, Russia limited food imports from some countries, including the U.S., the E.U., Canada, Australia, and Norway.

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